In this episode of Transform Your Workplace, host Brandon Laws interviews Lacey Partipilo, the Director of HR and Client Success at Xenium HR, about the sharp decline in US employee engagement, which has hit its lowest point in over a decade. Drawing from a recent Gallup study, Partipilo explores innovative methods to foster employee engagement. This episode offers essential advice for employers aiming to cultivate a positive workplace culture and adapt to the evolving work environment.
GUEST AT A GLANCE
Director of HR and Client Success at Xenium HR, Lacey Partipilo is our go-to source for business advice and HR expertise. She is all about relationships and building connections with not only her team at Xenium but also her many business clients.
A QUICK GLIMPSE INTO OUR PODCAST
🔊 Podcast: Transform Your Workplace, Sponsored by Xenium HR
🎙️ Host: Brandon Laws
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A DROP IN ENGAGEMENT
A recent Gallup article reports that US employee engagement has reached its lowest level in 11 years. As of the end of 2023, only 33% of American workers felt highly engaged, while by the close of the first quarter of 2024, this number had declined further, dropping three points to a mere 30%. According to the article, “This decline represents 4.8 million fewer employees who are engaged in their work and workplace, marking the lowest reported level of engagement since 2013.”
So, what’s driving this downward trend? Lacey Partipilo, an expert in workforce dynamics from Xenium HR, said, “The workplace has fundamentally changed,” as the residual effects of the pandemic are still influencing employee sentiment. Every six months post-pandemic has brought new challenges, contributing to the sustained sense of instability that we all feel.
Economic uncertainty looms large as a significant factor. Not to mention, employees are increasingly anxious about the economic climate, which directly impacts their engagement levels. Many employers are also grappling with managing a workforce that is now often hybrid or fully remote. This shift requires new management strategies that many organizations have yet to master. Undeniably, employee well-being, both mental and physical, has become a critical issue. The pandemic highlighted these concerns, but according to Partipilo, solutions are still evolving.
Employers find themselves at an engagement crossroads, striving to navigate this complex landscape. As engagement levels continue to drop, the pressure mounts to develop innovative strategies to re-engage their workforce and adapt to the new normal of work.
PODCAST EPISODE HIGHLIGHTS
The Biggest Drop
“The article talked about the three groups that had the biggest drop. Employees that are under age 35, so younger workers. I think that has a lot to do with the fact that many businesses and managers, in general, don’t know how to manage the Gen Z workforce.
They don’t understand them. They haven’t built policies and processes that support that group of workers, and so that can lead to challenges. Also, employees that believe — whether they can or they can’t — they can do their work remotely, but they’re forced to work in person. Those folks are also seeing lower ratings and a bigger drop. And then those folks that are fully remote.”
A Greater Purpose
“This younger generation of workers […] really does have a desire to understand the things that [they’re] doing — the day-to-day tasks — are making an impact on the greater good of the organization. And sometimes even like wanting to connect it to the community, the world, like really having a big impact. And if we can’t articulate that to employees, if we’re not able to help connect the dots, I think again, it’s just more of that noise that’s going to add to dissatisfaction and disengagement for those employee groups.”
The Effects of Disengagement
“On the extreme end of things, I think that this will create an environment where the strong organizations with high positive cultures and highly engaged employees are the ones that are going to survive, and toxic cultures that don’t hold people accountable, that don’t create an environment where people are engaged and thriving and employees are taken care of, those places won’t be in business anymore, honestly.”
Taking Action
“Organizations that have high engagement, they’re doing annual surveys, they’re looking at data to make sure that they’re measuring in some fashion […] what people want from work. […] They’re looking at trends year over year and trying to move the needle and then doing something with the feedback. […] It’s one thing to take the time to do that, but really where the rubber meets the road is when we do something with that. Employees do, now more than ever, have an expectation not only that we’re listening, but also that we’re executing on things that are important.”
Recognition = Engagement
“Xenium’s core values are really important to the work that we do. They’re very integrated into, I would say, all of our ‘people practices,’ but we’ve taken that and made it a program where employees can recognize one another for different behaviors that they exhibit that are tied to the core values. And then as you receive these ‘WOW’ cards, […] you can turn those in for fun stuff — so extra PTO, some Stoller wine, Amazon gift cards… I think that might be the most popular one right now. So it’s just a cool way to recognize folks.”
The Bottom Line
“I had a client one time say, ‘The ultimate goal is to have two lines out your front door. One: people who want to work at your business, and Two: people who want to do business with you.’ That’s always stuck with me, and I think you only do that by building an internal relationship brand that employees can be excited about.”
CONNECT
Reach out to Xenium’s own Lacey Partipilio on LinkedIn here.