As a result, employers need to place more emphasis than ever on developing an effective engagement strategy to reduce turnover and retain high performing workers. In order to do so, they need to prepare for the six “megatrends” that Hay Group has identified as crucial for successful business operations.
- Digitization – the ability of workers to publicly, and oftentimes anonymously, disparage a company brand online. This transparency is forcing businesses to be more responsive, accountable, and engaged.
“Nurturing a culture of pride amongst employees can help ensure the brand image remains protected,” said Steve Ewin, head of insight at Hay Group. “Employees will need to understand the direction of their organization, their division, and their team and the role each part plays in the future success of the organization.”
- Globalization – the shift of economic power from traditional Western economies to emerging markets in Latin America, Eastern Europe, and Asia. The rise of these regions is causing severe competition in the already stiff war for talent.
“Employees will actively seek out those employers whom already have high engagement levels,” said Ewin. “Again, this links back to the digitization trend and ability of employees to either promote or negatively impact organizations within seconds.”
- Demographic change – with the global economy on the rebound, scores of Baby Boomers are set to retire in the next 5-10 years. Businesses need to invest the time and energy required for an adequate succession plan and transfer of vital skills.
“Moving forward, as business conditions change more rapidly, it will be essential for organizations to have an engaged workforce. Those that do will be able to adjust more rapidly and outperform their competitors,” said Ewin.
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Almost 25% of employees worldwide will switch jobs by the year 2018, according to new research by Hay Group and the Centre for Economic Business Research.