Skip to main content

The key challenge to HR Managers – Employee engagement

By October 18, 2015 May 6th, 2020 No Comments

I often talk to HR managers about their role and what keeps them awake at night. I also like to know what “makes their day.”

Invariably the same issue rises to the top of the pile – employee engagement. This seems to be the number one challenge of HR managers in a large percentage of companies I talk to.

With HR striving to take a seat on the Board, it is vital that HR strategy in in alignment with the corporate vision and strategy. Employees are the brand. Without them you have no unique competitive advantage, and so employee engagement, leading to improved retention is critical. With leading professional services companies such as Mercer Consulting calculating that to replace an employee can cost as much as 150% of salary, reducing staff churn can deliver huge benefits.

During a recent meeting with a senior HR manger in hospitality, we discussed a key issue connected to employee engagement – unplanned absence and the impact on the business. In this particular business, this was a significant problem.

When we discussed it further, I discovered that unplanned absences can have a major impact on a business and are a challenge to HR, a drain on resources, and create problems for the business. The key issues identified were:

  • Lost productivity (and revenue) if no one can cover the work
  • Increased costs – you may need agency staff for shift cover or pay more for staff covering shifts
  • Reduced efficiency (and revenue) if staff cover is not found
  • Lower levels of customer service as personnel are stretched
  • Reduced employee morale

When you add employee turnover and retention to the mix, the real impact on a business starts to add up, and you could be losing millions of dollars per year if turnover is high.

Lowering your staff turnover has a major positive impact on your bottom line through:

  • Improved productivity and morale
  • Lower recruitment costs – both time and money
  • Reduced on boarding and training costs
  • Retention of expertise

By placing employee engagement at the top of the list of priorities, HR managers can align their strategy with the overall corporate vision and make a real difference to the bottom line.

Brownie Points is designed to improve staff retention and improve employee engagement. To learn how we could help your business, call us today on 03 9909 7411 or email us at for a no obligation discussion.

It could be the best call you ever make.


Leave a Reply