The old-fashioned suggestion box once was a valuable tool for soliciting feedback from employees and giving them a voice in the direction of a company. In a 1954 article, Time magazine reported that suggestion boxes generated scores of ideas that saved money and boosted production for U.S. industries.
In the age of digital communications, the physical suggestion box is now largely a relic from a bygone era. Workforce feedback remains invaluable, however. That’s why more and more HR organizations are deploying employee engagement software to connect, communicate and engage with increasingly dispersed workforces.
According to a new report by Zion Market Research, the global market for employee engagement software was valued at $142 million in 2018 and is expected to reach approximately $346 million by 2025 with a compound annual growth rate of more than 13.5 percent.
Employee engagement software provides a platform for organizations to solicit feedback, conduct surveys, recognize staff achievements, share information and more. Perhaps more important, it can increase employee retention, productivity and job satisfaction by making employees feel respected, valued and invested in the company’s success. Those are incredibly important qualities for creating organizational stability.
Stability is a concern in many organizations experiencing generational workforce shifts, with millions of Baby Boomers retiring and being replaced by Millennials and Generation Z workers. According to a 2016 survey by Deloitte, Millennials are demonstrating lower employer loyalty, with two-thirds expressing a desire to leave their current organization.
Meanwhile, a 2018 Gallup poll found that roughly 70 percent of U.S. employees are not engaged at work, ranging from those who say they have “miserable” work experiences to those who say they are generally satisfied but only want to show up for work and do the minimum amount required. These workers also say they would be quick to leave their jobs for even a slightly better offer.
The Gallup poll results also indicate that organizations with high levels of employee engagement are more profitable and perform at higher levels, achieving better than four times the earnings-per-share growth of their competitors. Those reporting high levels of engagement also reported better customer engagement, higher productivity, better retention, fewer accidents and better health outcomes.
Although employee engagement software digitizes many older paper-based feedback and communication channels, it isn’t limited to that. For example, many solutions feature advanced analytics modules that can integrate and analyze data from surveys and other sources to help organizations understand employee sentiments across a variety of geographic, departmental and functional boundaries.
Employee engagement software is particularly useful when tightly integrated with an HR intranet portal. This integration allows companies to engage employees through a variety of initiatives such as career advancement, training and education programs, flexible work options, health and wellness programs, community involvement opportunities, conflict resolution and more.
An engaged, committed and enthusiastic workforce is a key to success for organizations in all industries. Engaged workers have higher levels of job satisfaction and morale, which leads to lower turnover rates, improved productivity, and reduced recruiting, hiring and training costs.
Employee engagement software can help deliver such benefits, particularly when it is deployed as part of an integrated HR portal strategy. Unlike the old suggestion boxes, employee engagement software not only creates the means for gathering feedback, but also provides a platform for acting on that feedback. For more information on Human Resources Employee Communication, please check out our white paper.
Written and composed by Lyndsay Soprano, Director of Marketing