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Chapter 3: The Barriers to Engagement
Lack of awareness
5 In the course of our review, we spoke to a wide range of stakeholders in all sectors
of the economy. It became evident that a large number of leaders remain unaware
of the concept of employee engagement, and the benefits it could bring their
organisation. Accor report that 75 per cent of leaders have no engagement plan or
strategy even though 90 per cent say engagement impacts on business success. 89
That is why our key recommendation is for a nationwide effort to raise the profile
of the issue and to increase the availability of practical support. This lack of
appreciation at the most senior level of what employees contribute is underscored
by Accenture’s finding that over half of Chief Financial Offers surveyed had nothing
more than a minimal understanding of the return on their investments in human
capital. A further 30 per cent understood it to a modest level and only 16 per cent
demonstrated a considerable understanding. 90 Philip Whitely of the Human Capital
Forum told us that what was required was “a Copernican shift, ditching the centuries
old dominance of accountancy as the way of understanding the organisation.”
(web response to call for evidence). On the other hand, Mel Flogell, head of HR
policy at Centrica, believes investors are becoming increasingly interested in
engagement, as more people realise an engaged workforce delivers value to an
organisation. “Ensuring staff are performing to their full potential is how organisations
will secure their competitive advantage. Investment in people is imperative for
delivering the business strategy, and shareholders are going to look for evidence for
this.” And in a new departure, AXA WF Human Capital Fund cites human capital as a
primary criterion for investment. 91
6 Uncertainty over engagement is also reflected in a fear that engagement might be
seen as too ‘soft and fluffy’ or as ‘not the British way’. As the law firm Freshfields,
Bruckhaus Deringer told us, when they introduced their groundbreaking
engagement strategy for legal associates, “we could have come at it from a fluffy
approach, but it wouldn’t have worked. So we put the performance metrics up front.”
Uncertainty about starting
7 Others, while they were interested in what engagement could offer, did not know
how to address the topic within their organisation. This lack of certainty about how
and where to start can be compounded by the feeling that employee engagement is
something that is ‘out there’ – a product one buys, often at great expense. It is not
always helpful to focus on employee engagement as a product; this in itself can be a
barrier to action.
89
Accor: Reward to Engage: Rewards, Benefits and Employee Engagement in Today’s Organisations and at
http://engagement.accorservices.co.uk/website/employee-engagement-whitepaper-form.html.
Last accessed 1 July 2009
90
Accenture, ‘An Accenture point of view on Employee Engagement – What it is. Why it matters. How you can
change it’. Produced for the MacLeod Review, December 2008
91
Lauren Mills (2008) ‘Human Capital: Meaningful Metrics’ Management Today, 3 November 2008
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