Most Australians disengaged at work, global study finds
03/06/2008
Australian employers are putting their productivity at risk by failing to motivate employees, with a global study finding that 62 per cent of Australians are disengaged at work.
The study of more than 16,000 employees globally, with over 2,000 in Australia, by HR consultancy Right Management revealed that while Australian employers are faring better than their British counterparts, where the proportion of disengaged employees is at 70 per cent, they lag behind the United States which has 57 per cent of its workforce disengaged.
Just over a third (36 per cent) of Australian workers are 'Stars' - employees who are connected to their job and feel their organisation is a great place to work. However, an even higher proportion are 'Disconnected' - 42 per cent are neither engaged, nor do they like where they work.
Right Management's E8 Engagement Study measures commitment, pride, advocacy and satisfaction to assess the extent to which an employee is engaged with both their organisation and their job. According to Right Management's chief executive Bridget Beattie, there is a direct link between employee engagement and business performance.
"Research has consistently shown that employee engagement is powerfully linked to business results such as revenue, productivity and staff retention. While the fact that more than half of employees don't feel a sense of engagement is concerning, it presents an opportunity for employers to focus on this area as a way of boosting business performance," Ms Beattie said.
Engagement linked to retention
Unsurprisingly, a disengaged employee is more likely to want to leave: almost twice as many engaged workers (61 per cent) intend to stay for more than five years at their organisation, compared those who are disengaged (33 per cent). Similarly, around 1 in 5 disengaged workers want to leave within the next year, compared to just 1 in 20 from the engaged group.
However, one interesting finding reveals an upside of high staff turnover: employees who have worked at their organisation for less than one year show the highest engagement scores (47 per cent), which drops to 36 per cent between one and two years. And after more than 10 years, the scores slump to a low of 32 per cent.
"There is often a 'honeymoon' period after an employee starts and feels excited by the new environment - they're yet to hit a wall of boredom. The challenge for employers is not just to retain staff, but to retain their productivity, enthusiasm and motivation too," Ms Beattie said.
Manufacturing sector hit hard
The economic woes facing Australia's shrinking manufacturing industry appear to be feeding through to employees in the sector, with particularly low engagement scores for those who make motor vehicles (25 per cent), machinery and equipment (20 per cent) and electronic goods (26 per cent).
"However, it's likely they fear the prospect of finding employment again, because in this sector, low engagement does not translate to an intention to leave: the number of workers who intend to stay at least five years is relatively high: 45 per cent of motor vehicle makers and 60 per cent for machinery and equipment," Ms Beattie said.
This compares to just 19.8 per cent for restaurants and hotels, and 27.3 per cent for investment banking and securities.
"Some of our boom industries are more likely to face high turnover, as the number of opportunities convince employees that greener pastures exist. Insurance companies have just a third of their workforce planning to stay long term (more than five years), and in business services, around one third of employees plan to stay less than two years.
Other, more motivated sectors include recreation, cultural and sporting activities (53 per cent) and not for profits (53 per cent). And for government workers, local is best: those in central government recorded a low 33 per cent engagement, compared to a much higher local government score of 46 per cent.
Older workers more committed but less engaged
The engagement scores confirm what is often said about older workers: they are more likely to be committed to their organisation's values, and to stay in their job longer. However, as retirement looms, engagement levels plummet, with just 30 per cent of the 50-65 age group engaged, compared to 39 per cent for those in their 30's and 40's.
"There are so many advantages to employing older workers (those over 40 years), yet organisations are still failing to develop policies aimed at this group. In fact a recent Manpower survey found that only 17 per cent of employers in Australia have strategies in place to recruit older workers and only 29 per cent have retention strategies. In the context of a tight labour market, this represents a lost opportunity to tap into a rich source of loyal and committed talent," Ms Beattie said.
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