Engaging Today’s Workforce

Posted in Human Capital Management By Chris Haley

Engaging Today’s Workforce

Employee Engagement emerged out of the Rewards & Recognition industry after the millennial workforce proved spending an entire career with one employer is no longer the norm. The resulting new-age engagement providers take a more real-time approach to creating meaningful connections between employees and their employers, rather than recognizing standardized and tenure-based milestones. Engagement platforms allow employees to give each other peer-to-peer recognition and work through a site that looks and acts like the social media to which they are accustomed. Recently, Engagement has blossomed into a growing and important industry separate from Rewards & Recognition. We believe that Engagement has the potential to become the overarching category in Human Capital Management, with other industries like Wellness, Rewards & Recognition, and Benefits as subcategories.   

Following the Money – Trends in Engagement   

The rising importance of meaningful employee interactions has resulted in significant investment within the space, recently occurring in the following three segments:   

Social Media-Style Interactions & Mobile: Investors turn their focus to players that enable peer-to-peer interactions through gamification and mobile platforms.   

Real-Time: Traditional HCM and performance management players enter real-time engagement and pulse surveys through recent acquisitions. 

Integrated Platform: Larger players move to acquire best-of-suite employee engagement platforms, uniting all aspects of employee engagement into one solution.  

Predictions   

Employee Engagement as an industry will continue to grow as more companies recognize the price of high employee turnover, low productivity and the composition change of the workforce.  As innovators in the space begin to expand the definition of their engagement offerings and traditional players develop new-age offerings, we expect to see companies collide and overlap. The collisions will catalyze the consolidation that we predict. Wellness, Reward and Recognition Performance Management and Learning Management will all become subcategories of Employee Engagement. The integrated Employee Engagement platforms will allow companies to achieve their strategic goals while retaining a workforce engaged in all senses of the word. 

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DISCLAIMER
This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.   

[1] Josh Bersin et al., Global Human Capital Trends 2016, Deloitte University Press, http://www2.deloitte.com/us/en/pages/human-capital/articles/introduction-human-capital-trends.html (last visited September 12, 2016).

[2] James K. Hartner et. al., The Relationship Between Engagement at Work and Organizational Outcomes, 2016 Q12 Meta-Analysis: Ninth Edition (April 2016),available at http://www.gallup.com/services/191558/q12-meta-analysis-ninth-edition-2016.aspx.