Unlocking retention: The role employee engagement plays

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Talent acquisition and retention is a never-ending game for most companies. Just when they think they have solved the equation, an exodus of employees leave and the game starts anew. There are many ways to improve employee engagement: work-life balance, shifting workloads, setting goals, and recognizing achievements. But, engagement looks different for every company, and every employee. It is making that connection with each unique employee that becomes the key to retention.

 

Scott Berkman, chief procurement officer at Elior North America, a company of 12 distinct food and hospitality companies that feeds more than 4 million people daily, told Supply Chain Management Review the challenge to find and retain employees is never-ending.

“I think the dynamic of the workforce has changed,” he said. “The view on how people view employment has changed over the last few years. Talent can either be DNA-based where folks have the right attributes to apply and make them successful in an organization, or they can have the right technical attributes. However, the right technical attributes don’t guarantee success.”

Berkman said a hiring priority at Elior is finding the person with the right DNA. “On the procurement side, it’s DNA. You hire for DNA and train for skill,” he noted. That DNA, at Elior, means finding the right person, with the right attitude and right approach to the position.

“We are forming what we want to look like, so there is an opportunity to contribute,” Berkman says of Elior’s journey, which despite generating more than $1 billion in annual revenue, is still evolving as an organization. “If an individual, from a procurement standpoint, wants to be part of that journey … I think it is a very positive place for that type of individual.”

Among the key attributes Elior might look for in a procurement professional are whether they can function in a team environment, what their skillset looks like, and whether they can handle KPIs. All of that is explained during the onboarding process. In fact, that is a key part of ensuring Elior hires the right people.

“Communication is very important, both in the interview process and the onboarding process,” Berkman says. “They are given a playbook of the organization and what is expected, and that is expected of all of us.”

Challenges to retention

Earlier this year, Supply Chain Management Review and Butterfly.ai released the results of the 2023 Employee Satisfaction Survey. That survey showed that 77% of of employee turnover can be attributed to poor management, according Simon Rakosi, co-founder and CEO of technology company Butterfly.ai.

Toxic work environments, a perceived lack of trust, limited opportunities for growth and development, and concerns regarding compensation are among the top concerns of supply chain employees, the survey found.

“In today’s corporate landscape, understanding why employees decide to leave has become crucial,” Rakosi noted at the time. “This highlights an urgent need for companies to invest in effective management training and support.”

The survey was conducted by Peerless Research Group on behalf of Supply Chain Management Review and technology company Butterfly.ai. The purpose was to examine key areas of satisfaction in the workplace, including career development, work engagement, compensation, relationship management, benefits and work environment. One hundred and thirty people responded to the survey, which was conducted among the Supply Chain Management Review subscriber base, and the results have a margin of error of +/- 7.2%.

Respondents came from various position levels within companies, including 26% that listed manager as their job title, 22% as senior manager and 12% each at the individual contributor or manager/C-level.

Employee investment

If poor management is a top reason for employees leaving, then career development would seem to be a prime area where companies can invest in their talent. But, according to the survey, 30% of respondents either disagree or strongly disagree when asked if they are satisfied with the investment their organization has made in their training. Another 18% neither agreed nor disagreed.

Conversely, 71% either agree or strongly agree that they are being given opportunities to apply their expertise. Additionally, nearly half (47%) agree or strongly agree that career advancement opportunities are available.

Employees, generally speaking, are also engaged with their workplace. Ninety percent of respondents believe they give their best effort, and 84% agree or strongly agree that they are so involved in their work that the day goes beyond quickly. Those agreeing or strongly agreeing that they are inspired to meet their work goals reached 78% and 74% feel completely involved in their work.

“As we delve into the challenges faced by our frontline workers, it’s essential to recognize that the primary reason for their attrition isn’t just about pay,” Rakosi said. “[It] encompasses feeling fairly treated and respected, being valued and appreciated, finding joy and meaning in their work, and crucially, fostering a positive relationship with their managers. It’s evident that addressing these emotional facets is paramount in retaining and supporting our invaluable frontline workforce.”

Improving engagement

As the survey results showed, while many employees are satisfied and engaged, more can be done. Respondents were given the opportunity to provide feedback on things their organization should do to make it a better workplace. Top comments focused on improving healthcare, more communication including job openings in other departments, better resource allocation, higher wages and eliminating fear. Additional comments also noted that leaders need to be better leaders, provide better guidance, and micro-manage less.

“In the evolving world of work, a key area of focus is relationship management. Our data underscores its significance,” Rakosi said. “To bolster peer interactions, consider team-building activities and workshops. For improving supervisor-employee rapport, regular one-on-one check-ins can make a huge difference. We can empower our teams further by offering training sessions on decision-making, ensuring they feel trusted and valued. An atmosphere of mutual respect is fundamental; workshops on etiquette can facilitate this.”

Employees also asked for more resources, more technology, more training, and raises/bonuses that reflect performance.

“Town-hall meetings can greatly improve communication from management for corporate employees and shift huddles would do the same for frontline workers,” Rakosi said. “Lastly, let’s not forget the power of recognizing hard work; strong performance deserves to be celebrated. By embracing these strategies, we can bridge the gaps and fortify relationships within our organizations.”

Focus on employees

Lorraine Gavin, principal analyst at Gartner Supply Chain, highlighted one of the biggest failures of corporate leadership when it comes to employee engagement.

“According to Gartner’s Future of Supply Chain Survey, more than half of respondents cite the biggest challenge in delivering more effective people leadership in their organization to be a focus on operational outcomes rather than people strategies,” she wrote. “Supply chain leaders need to transform multiple parts of their function and are being asked to introduce new technologies such as Gen AI to support the company’s growth objectives. These changes require cooperation and skills development across their workforce. Addressing change resistance cannot be overlooked to achieve success with their operational goals.”

Gavin, while focusing change management strategies, advised firms to focus on listening and spend less time on convincing.

“By shifting approach and engaging employees through listening, leaders can guide them in their transition process. As employees engage with the change, welcome the interaction and be willing to hear resistance. Acknowledging negative attitudes and opinions is not the same as agreeing with them but is a powerful way to build trust,” she wrote. “Once lines of communication are open, leaders can further engage employees by asking questions and allowing them to answer for themselves (and a group if they are together).”

There is also the concept of gamification.

A study from Lucas Systems found that implementing game mechanics, such as competitions for incentives like bonus pay, prizes, or recognition, is growing as one such strategy that can keep employees engaged with the bonus of increased productivity if done right. The study, which polled 750 U.S. and UK on-floor warehouse workers, found that 84% of warehouse employees would be more likely to stay with a company that developed a program featuring competition in the workplace.

“The workforce is a big asset for warehouse operators,” Ken Ramoutar, chief marketing officer, Lucas Systems, said. “Keeping a steady and engaged workforce is worth a lot in terms of consistent business performance.”

There are many ways to unlocking employee engagement. And what works for one employee may not work for the next, so management needs to remain flexible in its approach. While no level of engagement is a sure-fire way to slow the employee exodus, it does create an environment where employees feel more valued, and importantly, creates a culture that potential employees may view as positive, improving recruitment efforts.

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