Is UK plc ready to grow? 

That means boosting workplace productivity – which is no mean feat given that the absolute number of people available for employment has fallen since the pandemic. But are the UK’s employers and workforces willing and able to up their game in this way and, if so, what help do they need?

This article is the first in a series of People & Growth Insights by Mercer. Each will chart one aspect of how UK plc can create a stronger path towards growth: one that is people-centred and technology-enabled. We will draw upon Mercer’s global experience, research data and best practices to offer ideas for what it takes to build sustainable, successful and relatable businesses.

Research studies have shown that employee engagement has a direct impact on business performance in terms of growth factors such as productivity, profitability and innovation.

Mercer’s Insights 2022 study of employee engagement provides an overview of the current strengths and weaknesses in UK employee attitudes to the workplace experience, and how they compare to other regions. The research compares responses from 250,000 UK employees with those of 1.5 million European employees and almost eight million employees worldwide, and it throws up four significant differentials.

It’s clear from the study that employees across the board are motivated, with 79% of UK employees wanting to help their company succeed (compared with 78% in Europe and 82% worldwide). More than three quarters of UK employees (76%) are proud of their company, which is, again, in line with Europe but behind Global on 83%.

But engagement is less robust in other respects. Only around two thirds of British respondents feel satisfied with their employer or would recommend their organisation as a place to work – views that trail European and Global peers. Additionally, almost 40% would leave the company if they were offered comparable pay and benefits elsewhere, pointing to the likelihood of increasing turnover in the UK (as well as Europe) – especially as inflation bites and workers chase higher wages.

The research suggests, however, that a few key considerations can make all the difference to workers’ attitudes and commitment. Solid paths for career progress, a feeling of personal accomplishment and opportunities to learn and grow all feature among the top drivers identified for employee engagement.

As the chart below shows, fewer than half of UK employees feel they have the opportunity for advancement or can reach their potential with their current employer – way below comparable Global data. That’s not a great basis for either organisational or personal growth. Clearly, if UK employees don’t understand how their individual skills can grow or their career goals can be met within their organisation, they’re likely to seek those opportunities elsewhere.

Mercer’s study also highlights the encouraging finding that perceptions about diversity within UK companies are strong and positive, and match global norms. Many linkage studies have shown the correlation between diverse groups and greater innovation. Creating an inclusive environment is a great platform for fostering change, and evident diversity also reinforces the attractiveness of your organisation to a broader talent pool.

Compared to Global norms, learning from mistakes as well as creating an environment in which innovation is supported could be improved. Responding quickly in order to continuously meet customer needs is a clear opportunity area according to UK employees.

As a final set of perspectives, consider the below chart. UK workers feel encouraged to be innovative, and experience average levels of psychological safety when they do – but barely half feel their company responds quickly to customer needs, and only two-thirds feel their organisation learns from mistakes, against higher norms in Europe and worldwide. It’s hardly a recipe for longer-range productivity growth. If employees – including front-line customer facing staff – don’t perceive the organisation as responsive, the business cannot thrive long-term.

Admittedly, creating organisational growth is a complex issue, and there are rarely quick fixes for a secure path to sustainable improvements in productivity. Yet organisations can take action and make changes. Crucially, there is an important alignment between employees eager to learn and grow at work and employers seeking an innovative, effective and increasingly productive workforce.

For HR leaders, that alignment highlights a number of steps to facilitate growth. These include assessing employee skills to better understand the company’s capabilities and target any reskilling activity; effectiely matching skills to tasks through ‘talent marketplace’ systems, and paying accordingly; identifying inefficient processes that need to change; and embedding a culture of learning within the business.

These are big challenges, but experience shows they are by no means insurmountable.

In future blogs, we’ll be looking in more detail at the various ways HR functions can enhance both employees’ experience and corporate productivity.

Look out for:

• Growth through skills: from skills inventories and assessment, to work and pay - what’s involved?
• Growth through change: what are the steps to changing corporate culture, redesigning processes and reshaping delivery?
• Growth and compensation: realigning rewards; pay for skills and task performance versus pay for job roles.
• Growth through diversity: rethinking diversity in tight labour markets.