Ceridian Canada

Ceridian Canada

October 22, 2014 09:15 ET

Ceridian Warns That the Replacement Costs for Disengaged Employees is 5 Billion Dollars Annually

Pulse of Talent Reveals That Employers Risk Reputation Damage & Costly Replacement Expenditure Due to Employee Disengagement

TORONTO, ONTARIO--(Marketwired - Oct. 22, 2014) - Ceridian's 2014 Pulse of Talent reveals that companies should do more to increase employee engagement and avoid the high cost of turnover, low workplace commitment and potential brand damage. The annual Pulse of Talent survey was commissioned by Ceridian and conducted by Nielsen. Survey respondents were interviewed regarding their perceptions of employee engagement and loyalty, recruiting, training, job security, compensation, productivity, workplace wellness and employer branding, among other topics. Key findings show that although organizations have made significant progress when it comes to facilitating employee engagement - engagement is still an important workplace issue that affects the bottom line and deserves attention.

Highlights of the survey are:

Employers can improve upon employee engagement levels.

  • One in four respondents are poorly engaged (22%) or completely disengaged (5%) in the workplace

  • Only 44% of respondents believe that the work they do is valued by their employer

Recruitment policies and processes are critical to building and maintaining a strong company brand.

Crucial to attracting top talent is a positive employer brand. Even the smallest mistakes such as neglecting to communicate with the candidates at every stage of the job application can have negative consequences on a company's brand reputation.

  • 68% of respondents say that neglecting to notify candidates of their application status leaves a negative impact on their overall impression of the company

  • 52% of respondents say that they are less inclined to apply for other job postings in those companies that neglect to notify candidates of their application status

  • 44% say that they will be less inclined to buy the company's products and services

Employers who provide an environment where employees can develop and be promoted internally are able to develop and retain more highly engaged employees.

  • Only 38% of all respondents believe their employers prioritize internal employees for available positions

  • Among highly engaged respondents, a majority (59%) felt their employer focused more on internal promotions, four times higher than for disengaged respondents

Highly engaged employees are more loyal to their employer.

High engagement levels play a critical role in improving retention rates and reducing turnover.

  • An overwhelming majority of highly-engaged respondents (68%) would like to stay with their current employer for five or more years, compared to 55% for all respondents and only 14% for disengaged employees

  • Only 14% of highly engaged respondents are in some form actively looking for a new job with a new employer. This rate jumps to 63% for disengaged respondents.

  • More than half (56%) of highly engaged respondents are not considering a new job or position outside of their company. This rate is only 16% for poorly engaged respondents and 0% for disengaged respondents.

"Organizations with high levels of engagement have less absenteeism and higher productivity than those with high levels of disengagement," says Dave MacKay, president of Ceridian. "Also, organizations with high levels of engagement have fewer concerns with retaining employees. Employers risk losing significant payroll dollars for every disengaged employee who is present at work but not invested in making the effort to produce results that advance the business. There is clear value in sustaining engagement over time."

A multifaceted approach to increasing employee engagement during the employee lifecycle from recruitment and onboarding to career pathing and retirement can take on several forms. Communication is key. Organizations should look to redefine their internal and external candidate experience and keep candidates up to date and engaged throughout the whole employee lifecycle in order to protect their brand reputation. For current employees, better communication around job expectations and recognition for good work is important to keeping workers motivated.

"Other facets to a well rounded employee engagement strategy include keeping employee career progression in mind with increased opportunities for learning, job growth and overall career development," adds Mr. MacKay. "Employers should also consider offering an employee assistance program - a valuable resource that helps address employee wellness needs while helping improve workplace productivity. All of these employee engagement considerations can help strengthen an organization's reputation as an employer of choice."

The Pulse of Talent survey provides valuable Canadian industry insight on workforce metrics, to help identify talent gaps, reveal opportunities and identify emerging trends within the workforce.

To download a whitepaper on the 2014 Pulse of Talent entitled: 7 Drivers For Building Employee Engagement: From Hire To Retire, go to the resources and tools section of the website.

About Ceridian

Ceridian Canada is part of the Ceridian group of companies. Ceridian is a leader in human capital management with more than 100,000 clients across the globe. Ceridian delivers trusted results and transformative technology. Our offering includes the award winning, cloud-based Dayforce HCM, LifeWorks, Powerpay and International Payroll. Ceridian is transforming the world of work. For more information about Ceridian solutions, visit www.ceridian.ca or call 1-877-237-4342.

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