61% of US employers have a budget for employee engagement

Chris Mulligan

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.

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“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.”