A joint study from WorldatWork and Hay Group found over half of companies surveyed plan to increase their focus on employee engagement as a measurement of reward program success. Current performance metrics are focused on financial performance rather than engagement; more than 70 percent of employers use financial performance to measure success, compared with 40 percent who use employee engagement.
"The global downturn has prompted organizations worldwide to shift to an increased focus on how to engage and motivate employees," said Tom McMullen, U.S. reward practice leader for Hay Group. "However, during times when budgets are tight, maintaining an engaged workforce is more difficult than ever. When times are tough, employers are looking for ways to improve engagement - and it's essential they remember the motivational power of intangible rewards, the role of the line manager in establishing a great work climate and the importance of communicating effectively with employees."
About two-thirds of companies plan to improve training for their line managers to manage pay-for-performance programs, and to improve communication between managers and employees.
