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As organizations face historic challenges in 2023, with a competitive talent landscape, an exhausted workforce, and pressure to control costs, HR leaders have to align their initiatives to meet the needs of employees, as well as business objectives, to remain competitive in the future of work.
According to a recent report by Gallup, job dissatisfaction and unhappiness are at an all-time high. The report found that 60% of workers feel emotionally detached at work, while 19% are downright miserable. In contrast, only 33% of workers reported feeling engaged, a number that has decreased from 2020.
The issue of worker disengagement and unhappiness is not only an HR problem but also a bottom-line issue, as business units with engaged workers have a 23% higher profit margin. Despite efforts by employers to address the issue by offering more work-life balance, such as flexible work arrangements and increased time off policies, worker disengagement and unhappiness has persisted and even grown.
The Gallup report suggests that factors such as remote work and a 4-day work week can lead to worker disengagement, while in-person work and a 5-day work week can lead to increased stress levels. However, the report also notes that these factors do not tell the whole story, as workers are unhappy regardless of their working hours or location. What really matters is how workers experience their work, including how they are managed, coached, and treated.
In short, the key to improving worker engagement and happiness is not just about providing more flexibility or shorter work weeks, but also about ensuring that workers feel supported and valued in their jobs.
There is no doubt that monetary compensation is important, but what really drives employees are deeper relationships, professional growth opportunities, a strong sense of community and purpose-driven work. This is the value that employees expect their employers to provide.
94% of employees would stay longer if their employer invested in their development, and employees that have access to employer-sponsored learning, coaching and career growth programs go on to have more fulfilling careers, and make a greater contribution to the goals of the organization.
Given that career growth has become just as important to employees as compensation, organizations will have to rethink what employee engagement looks like to more reflect your workforce’s needs today.
Career growth looks different for everyone.
Employees are also charting nonlinear career paths: 56% of candidates report applying for jobs outside their current area of expertise, and this figure will continue to climb further in the coming years.
At Thrive, we coined the term Career Wellness because we recognize that every career path is unique and employees may move around internally, change professions or even start a new business. We are all trying to build a fulfilling career that gives us purpose and balance, and employees expect their employers to support them in this mission, because it benefits everyone involved.
Imagine an organization where every employee is exactly where they want to be. Think about the impact this would have on employee productivity, innovation and culture.
It’s Thrive’s mission to make this vision a reality, and we believe it can be created by combining three initiatives: career development, readiness and opportunities. Let’s dive into each of these.
When employees feel like they are stuck in their current roles with no opportunities for growth and no tools to advance their career, they will become disengaged, leading to reduced productivity, increased turnover, and a negative impact on the organization's bottom line.
When employees are actively seeking out new skills and knowledge to advance their careers, they are also building competencies that are valuable to the organization. In this way, career development can help to drive both employee engagement and organizational competencies, creating a win-win situation.
By investing in the career development of their employees, such as upskilling and reskilling courses or platforms, employers can build a more engaged, skilled, and competent workforce that is better equipped to meet business objectives and achieve long-term success.
Career readiness refers to how prepared an employee is to enter the job market, and encompasses their resume, understanding labour market data, having a personal online brand on LinkedIn, and other key elements that are essential for navigating the employment market.
When employees have a strong foundation in career readiness, they are more confident, and proactive in their career development, because they know how to bridge the gap between where they are now and where they want to be.
It may seem counterintuitive to support your employees with career readiness, but workers who aren’t happy with their current job are costing you much more than their salaries alone, and should be encouraged to pursue a role that makes them feel fulfilled, whether that is within your organization or outside of it.
Additionally, engaged cultures are valuable, difficult to imitate and the very definition of a competitive advantage, but It’s impossible to build an engaged culture without an engaged workforce.
By supporting your employees’ career readiness, you are giving them the confidence to pursue their unique career path, while also lifting the culture of the company. .
All businesses onboard employees, but few offboard them.
Whether an organization is facing downsizing, or an employee chooses to move on, employers should do more to preserve the trust, goodwill and relationship they’ve developed over the years with their departing employees.
By treating your departing employees compassionately, and supporting them in their career transition with coaching services and tools, you are effectively placing your relationship with them above everything else.
Furthermore, in today’s tight labour market, organizations can no longer meet their talent needs through traditional sourcing methods alone and HR leaders have to think about expanding their talent pipelines to non-traditional candidates, such as employees who are looking to switch careers or may be redundant.
Overall, providing career opportunities is a critical component of employee engagement and organizational success, whether those are internal mobility opportunities or tools to access external ones. By investing in employee growth and development, employers can build a more skilled, adaptable, and loyal workforce while also strengthening their relationship with their employees.
In summary, employee engagement has never been more important, and consists of more than just monetary compensation. It is about ensuring that workers feel supported, valued, and engaged in their jobs, and it begins by redefining our current paradigm on engagement.
Employers must align their initiatives to meet the needs of employees, such as career development, career readiness, and accessibility to more career opportunities in order to remain competitive in the future of work. This approach will create a more engaged, skilled, and competent workforce that is better equipped to meet business objectives and achieve long-term success.
Thrive is a digital solution for employers looking to support their employees' career growth, emphasizing the benefits for the organization and its employees.
Thrive's mission is to help every employee become more employable, building a more engaged, productive, and innovative workforce for your organization. By combining all three pillars of career wellness in one platform, career development, readiness, and opportunities, Thrive can help organizations empower employees to build a fulfilling career that gives them purpose and balance, at every stage of their lifecycle. Thrive puts a suite of career tools at the disposal of your employees, such as the Career Path Explorer, our AI-powered labour market research feature that helps employees identify skills in demand.
HR leaders interested in improving employee engagement and business outcomes can schedule a demo to learn more about Thrive's innovative platform.
Learn more about the career wellness platform, solutions for your organization, and let us show you why our net promoter score is 73.
(the industry average is 28)
