Investigating Employee Engagement and Predictive Analytics

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1 Investigating Employee Engagement and Predictive Analytics An independent study into the attitudes of senior UK business people towards employee engagement and predictive analytics with a view to improving performance management Commissioned by MidlandHR and performed by Spectrum Consulting

2 Agenda Research Method Key Findings Supporting Graphs About MidlandHR

3 Research Method The research was conducted by independent research company Spectrum consulting using an online questionnaire. It revealed the opinions on employee engagement and predictive software from a diverse group of senior personnel within organisations of varying size range in both from the public and private sectors. In all 113 people completed the survey. Job Type Job Sector Organisation Size

4 Key Findings Figure 1: Looking at how organisations administer their HR functions, there was a general split between those that their processes are manual (26.1%), system driven with a focus on administration, record and compliance (18%) and system driven focusing on achieving efficiencies (18.9%). There were a greater proportion of organisations that use their processes to drive strategic workforce decisions (36.9%), identifying the underlying requirement for more developed HR software solutions. Figure 2: When identifying the factors that help to improve employee engagement of particular note was the comparison between the top and bottom three factors that may improve it. Relationships with employees (95%), managers (94%) and recognition of achievement (93%) were the most highly rated while flexible working hours (82%), good pay (79%) and flexible benefits (62%) were seen to be least important. This confirms and supports other industry research highlighting that organisations tend to focus on easier methods of intervention, such as pay than by looking at more complex issues like corporate culture when addressing employee engagement issues. Figure 3: As a very significant finding, almost all organisations understand that employee engagement affects employee performance (99%), retention rate (97%), organisational performance (92%) and absence levels (88%), yet only 59% understand the engagement of their employees and less (58%) understand how to engage their employees. Figures 3,4 and 5: Most respondents (76%) believed that the data gained is more accurate when anonymous. Half (53%) believe that employees are honest when providing potentially sensitive information about their employer and 62% thought individuals respond more honestly to surveys conducted by an external provider. Despite this, only 30% use an external provider and only 51% of employees are happy for information they provide to be used to improve employee engagement.

5 Key Findings Continued Figures 4,5: A shocking four out of ten (37.8%) of the individuals surveyed saw assessing employee opinion as unimportant which is highlighted when looking at how employee opinion is assessed. A quarter of organisations (24%) don t even conduct employee engagement surveys, 15% conduct them every 2 years while a further quarter only conduct them every 12 months. Less than 1 in 10 (8%) conduct them every 6 months and only 2% conduct them quarterly. Online surveys were the most popular method (49%) followed by paper (15%). Figure 6,7: Looking specifically at predictive analytics, interestingly the general issue and perception that it is a big brother development was dispelled as very few organisations saw it as an invasion of their civil rights (17%). It is clear that individuals aren t yet aware of it benefits in helping to understand employee engagement as 40% of respondents were unsure of its value. Despite this, half (49.5%) believe that it would provide accurate information as an indicator. Figure 7: The lack of knowledge about this predictive software is epitomised by the findings that on predictive software can identify potential risk (17%), manage absence (17%) and assist in talent management and retention (26%). The research also provided insight into developments required to improve the trust in predictive software through the use of anonymous surveys (76%) which are conducted by an external provider (62%).

6 Figure 1: Breakdown by HR function and process Public sector (outer ring) Private sector (inner ring)

7 Figure 2: Contribution to employees feeling engaged with their organisation

8 Figure 2 (continued): Contribution to employees feeling engaged with their organisation

9 Figure 3: Agreement with key issues

10 Figure 3 (continued): Agreement with key issues

11 Figure 4: How organisations conduct employee engagement surveys

12 Figure 5: Importance of assessing employee opinion about their organisation Public sector (outer ring) Private sector (inner ring)

13 Figure 6: Views on predictive software Public sector (outer ring) Private sector (inner ring)

14 Figure 7: Agreement with key issues

15 Figure 7 (continued): Agreement with key issues

16 About MidlandHR MidlandHR is the largest independent HR, payroll and talent management solutions provider in the UK. With over 25 years experience in the industry, MidlandHR deliver a wide range of expert tailored solutions and services including in-house or hosted solutions, Software as a Service, payroll bureau services and fully managed payroll outsourcing. MidlandHR s customers span the entire range of business sectors and include: Friends Provident, Severn Trent Water, Chesterfield NHS, QVC, Cambridge University, Oxfam, Oxford City Council, TK Maxx, Liverpool Football Club, Law Offices Departments, Laing O Rourke. For more information, visit MidlandHR at

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