Less than two-thirds (61%) of US employer respondents have some level of funding for employee engagement in 2016, compared to 71% in 2014, according to research by employee engagement and retention firm TalentKeepers.
Its 12th annual Employee engagement and retention trends report, which surveyed 887 US employers, also found that 26% of respondents rate themselves as very effective at engaging employees, up from 14% in 2015.
The research also found:
- Almost three-quarters (72%) of respondents believe workplace culture and morale is most impacted by low employee engagement levels and high turnover, and 58% of respondents say the biggest impact is on productivity.
- More than half (56%) of respondents think that low engagement and high turnover have the biggest impact on team performance, and 40% believe recruitment costs are most affected.
- Two-thirds (66%) name customer service ratings as the key performance metric that has improved as the result of a targeted engagement initiative, and 62% cite productivity.
Christopher Mulligan (pictured), chief executive officer at TalentKeepers, said: “Our findings show a number of key trends that have grown stronger, as well as several surprises where formerly popular tactics are replaced with new, emerging approaches to engagement and retention.
“One possibly troublesome point is that budgets for engagement and retention have slipped, a surprise after years of growth in dedicated funding.
“On the flip side, more focus is being placed on the impact leaders have, likely a growing recognition that leveraging leaders add little incremental cost and great value.”