The long-term prospects of nearly two- thirds of companies could be at risk, as global issues taint employee satisfaction, according to research by WTW.
Factors such as financial stress, the fallout from Covid, political and economic tensions and the ‘Great Resignation’ are disrupting the “business value” of 63% of companies around the world, WTW concludes.
Only 37% are driving “positive financial value” to their business through their employee- experience strategy.
While employee engagement levels remained unchanged globally in 2022, broader employee opinions on optimism, fair pay, career and retaining talent declined. This means 50% of employees are open to leaving their jobs.
The research found that only 37% of businesses globally are in a “value-drive state”, where employees are more engaged, more likely to believe their voices matter, feel capable of delivering their work and more likely to stay with their current employer. Meanwhile, 18% of companies are experiencing “value risk”, where a significant number of high-performing employees are thinking of leaving. These employees often feel unheard, see fewer career advancement opportunities and believe their organisation is less likely to match rewards to performance.
In the 15% of businesses that are in a “value potential” state, employees are disengaged and contribute less value but stay at the company. Some 30% of companies are experiencing “value drag”, where employees are largely disengaged and looking to leave, creating a drag on business value. Employees at these firms believe there is less clarity around career paths and have lower confidence in pay for performance, WTW says.
“Employee experience shapes business value and is a predictor of business performance,” said Stephen Young, WTW managing director of employee experience. “Only organisations in a value- drive state will grow, while organisations in a value-drag state will decline and deliver low to no returns.”
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