But, We Found Out What They Will Fund
As part of the research for “Purpose Meets Performance”, the latest #HRWINS report, I surveyed 600 employers in the U.S.A. A whopping 63% of respondents identified that measuring employee engagement is not a priority for their CFO. Furthermore, 58% of respondents stated that they had no strategy in place for measuring employee engagement with metrics, with only 8% having implemented a strategy across their enterprise.
Before you get too upset about that statistic, let’s think about what it really means: Employee Engagement is NOT a business outcome.
Of course your CFO isn’t concerned with it. It’s not an outcome at all. Along with the survey work, I interviewed dozens of HR and business leaders, and everyone with experience in the field will tell you that it’s a supporting pillar to existing processes in core HR. It’s not a new category of HR or HR technology. And, it certainly isn’t the next wave in tech “platforms”.
Employee engagement is a metric. It’s one data point. It’s important in its own right, especially if you’re measuring it more frequently than the old-school annual approach and using a survey that validated. It’s also incredibly inexpensive to measure. At this point, employee engagement is an app. And the leading apps give HR and line managers an incredible view to where they have issues and opportunities for managers to manage down to a department level.
Making the leap from employee engagement to business performance is near impossible without other important core HR data. And, it turns out your CFO is ready to fund those core initiatives. In the same employer survey, 39% of respondents said they expect to increase budgets for programs in Learning and Development, while 34% plan to increase budgets in each of employer provided benefits and recognition and rewards.
What does tie to business performance? Culture. Again and again, in study after study, culture ties to business performance. It makes good sense. Your company culture defines the beliefs your workforce aligns with. The most important belief being whether they understand the meaning of their work.
It’s time to rethink employee engagement…
So, how do you meet both your CFO and your employees where they are, engage the workforce, and capture strategic HR data that ties to business performance? Look to your core HR programs and your core HR system. Good news, I included three case studies of employers that are doing it to day in the mid-market in the report.LEARN MORE ABOUT PURPOSE DRIVING PERFORMANCE
About the report:
94% of respondents were leaders across nearly every department—Human Resources, Finance and Purchasing, Operations, Sales and Marketing, Administration, Production, and Research and Development—and all at employers with between 50 and 5,000 employees.