The constant need to stay relevant has now become a prerequisite for companies in a complex marketplace. It is becoming increasingly difficult for today’s leaders to feel confident enough to face the internal and external pressures that prevent their brands from reaching their full potential. Business environments are ever-evolving due to the fast pace of demographic, technological, economic and political change. In short, the marketplace is ruthless.

Meanwhile, attrition rates are driving HR heads cuckoo. In boom times, the affliction worsens. I met a CHRO recently who said, “Our attraction rate is more than neutralized by our attrition rates." This expectedly has a serious negative impact on a company's bottom line.

How is it that one person will be invested in their work while another in the same office will be spreading negativity? When we pick the right person for the job, assessing "fit" is paramount, but once they are on-boarded, it is useful to examine the variables that can impact engagement levels.

When we asked some of our key clients at Dale Carnegie India what their biggest focus for the year was- a vast majority stressed that it was employee engagement. This was not a big surprise for us. Employees in the predominantly Gen Y-domain workforce suffer from the Starbucks Syndrome; they want instant gratification. Management, usually paranoid, tries too hard to please; in-office cafes, gyms, yoga therapy, stress-buster facilities abound. But they only end up raising expectations further. It is a catch-22 situation.

This does not mean that financial compensation does not matter. It does.

As per the Dale Carnegie India Employee Engagement Report, The average hike on current salary that an employee in India would consider acceptable to leave his current job is 20%. At this pay increase, we found that 58% of disengaged workers would accept another job offer v/s only 14% of fully engaged employees. This salary inelasticity of fully engaged employees indicates a kind of loyalty that companies today are often hard-pressed to develop.

The famous line, “My assets go down the elevator every night,” which CEO’s wax eloquent on, is now a hard grim reality. Failure to inspire and engage, means that they are unlikely to be using the elevator the next day to return.One of the foremost goals for business leaders going ahead should be not only how to drive employee engagement in the workplace, but also how to ensure it becomes an ongoing part of HR strategy

Although employee engagement does not solely entail rewards, a well-designed rewards program can well be used as a tool to further motivate and engage employees, especially in small to medium businesses. Rewards typically include incentive pay, bonuses, promotions, etc. This system tends to harbour a transparent work culture where career growth is performance based and every employee is aware of what he needs to achieve in order to gain the benefits he desires. Such an atmosphere engenders a healthy, competitive environment of fairness and equality in which each individual is motivated and inclined to perform his best. For one, these programs often include training and professional development opportunities to enhance the employee’s skills and abilities, enabling them to perform more effectively at their jobs.

While there is no gainsaying that monetary rewards, financial package, and compensation enhancements do matter, if a company has a good corporate culture, and an exciting work environment, then retaining employees becomes a comparatively easier task.

More than rewards, awards make a difference. Many employees I engage with in different forums tell me; “Contrary to popular perception, more than financial gains, we look for recognition. Appreciation of one’s work through tangible and intangible means makes a huge difference”. This is one very effective way of showing employees that they are relevant to the company's success.

Dale Carnegie India will be hosting complimentary product previews in Mumbai, Pune, Delhi and Bangalore this year. You can now experience first-hand how our expertise in employee engagement solutions has helped us ignite workplace enthusiasm across the country for more than 12 years.

Register here: Free Employee Engagement Workshop