Experts in the field of employee engagement and wellness who need to determine the nature of problems that potential employees face, can start to identify the top set of problems that a few segments of companies face, like small medium large enterprise and angel or venture funded firms.
According to Robert J. Vance, Ph.D. report from SHRM Foundation on Effective Practice Guidelines, the following are common themes for How Companies Measure Engagement:
- Pride in employer
- Satisfaction with employer
- Job satisfaction
- Opportunity to perform well at challenging work
- Recognition and positive feedback for one’s contributions
- Personal support from one’s supervisor
- Effort above and beyond the minimum
- Understanding the link between one’s job and the organization’s mission
- Prospects for future growth with one’s employer
- Intention to stay with one’s employer
More recent employee engagement trends in 2023 for employees show improvement, as shown in the survey from Quantumworkplace.
While the specific challenges can vary depending on the industry, location, and organizational culture, here are the top 10 problems that each segment small, medium, large, and angel or venture funded companies commonly face in the areas of employee engagement and wellness:
Small Company Challenges
- Limited Resources: Small companies often struggle with limited budgets and resources to invest in comprehensive employee engagement and wellness programs.
- Lack of Structure: The absence of dedicated HR departments or specialized personnel can result in a lack of formal structures and processes for managing employee engagement and wellness.
- Work-Life Balance: Balancing work demands with personal responsibilities can be particularly challenging for small companies, where employees often wear multiple hats.
- Communication Gaps: With fewer employees, communication gaps can arise, leading to misunderstandings and reduced employee engagement.
- High Workload: Employees in small companies may face heavy workloads, leading to stress and burnout if not properly managed.
- Limited Benefits and Perks: Small companies may struggle to provide a competitive range of benefits and perks, affecting employee satisfaction and retention.
- Lack of Training and Development: Limited resources often translate into fewer training and development opportunities for employees, which can hinder their growth and engagement.
- Limited Growth Opportunities: Small companies may struggle to offer significant career advancement opportunities, which can impact employee motivation and engagement.
- Employee Recognition: Small companies may struggle to establish formal recognition programs, potentially leading to a lack of appreciation and motivation among employees.
- Employee Retention: Attracting and retaining talented employees can be challenging for small companies, especially when competing against larger organizations with more resources.
Medium Company Challenges
- Scaling Employee Engagement: As companies grow, maintaining consistent and effective employee engagement practices becomes more challenging.
- Alignment with Company Values: Ensuring employees’ values align with the company’s mission and culture becomes more complex as the organization expands.
- Limited Leadership Development: Medium-sized companies may face difficulties in developing leadership skills across various management levels, hindering growth and employee engagement.
- Collaboration and Communication: As teams and departments expand, effective collaboration and communication can become more difficult, affecting engagement and productivity.
- Balancing Autonomy and Control: Finding the right balance between granting autonomy to employees while maintaining necessary controls can be a challenge in medium-sized companies.
- Maintaining Work-Life Balance: As workload increases, maintaining work-life balance becomes more challenging, potentially leading to increased stress and decreased engagement.
- Hierarchical Structures: Medium-sized companies may struggle with overly hierarchical structures, inhibiting open communication and collaboration among employees.
- Evolving Policies and Procedures: With growth, companies often need to update and adapt policies and procedures, which can create confusion and impact employee engagement.
- Employee Wellbeing Programs: Implementing comprehensive wellness programs that cater to a diverse workforce becomes more complex as the company size increases.
- Retaining the Start-Up Culture: Medium-sized companies may face difficulties in preserving the entrepreneurial spirit and agility that characterized their early stages.
Large Companies
- Siloed Departments: Communication and collaboration barriers can arise in large organizations due to siloed departments, hindering employee engagement.
- Managing Diversity and Inclusion: Large companies often have diverse workforces, requiring robust strategies to foster inclusion and ensure equal opportunities for all employees.
- Change Management: Implementing organizational changes smoothly and effectively becomes more challenging in large companies due to their size and complexity.
- Leadership Development and Succession Planning: Identifying and developing future leaders and implementing effective succession planning can be more complex in large organizations.
- Employee Disengagement: With a larger employee base, disengagement can be a significant concern, resulting in decreased productivity and increased turnover.
- Streamlining Communication: Large
Structure of the HR Organization
The following three tables correspond to small medium and large firms that describe the organization of the typical Human Resources department. They describe the individual contributor or specialist title, their core responsibility to the executive management team or owner, their value to the organization, their typical periodic tasks:
Role |
Core Responsibility to Executive Management/Owner |
Value to the Organization |
Typical Periodic Tasks |
HR Manager/Generalist |
Develop and implement HR policies and procedures |
Ensure compliance with employment laws and regulations |
Manage recruitment and onboarding processes |
Payroll Specialist |
Ensure accurate and timely payroll processing |
Maintain financial integrity and employee satisfaction |
Process payroll and handle payroll-related tasks |
Training Coordinator |
Coordinate training and development programs |
Enhance employee skills and competencies |
Identify training needs, organize training sessions |
Benefits Administrator |
Manage employee benefits programs |
Attract and retain employees |
Administer benefits enrollment and claims processing |
Employee Relations Specialist |
Handle employee relations and conflict resolution |
Promote a positive work environment |
Address employee grievances and mediate conflicts |
Medium Company HR Department
|
Large Company HR Department
Role |
Core Responsibility to Executive Management/Owner |
Value to the Organization |
Typical Periodic Tasks |
HR Director |
Develop and execute HR strategies |
Support organizational goals and growth |
Oversee HR operations and provide strategic guidance |
Talent Acquisition Manager |
Lead recruitment and talent acquisition efforts |
Attract top talent and build a skilled workforce |
Develop recruitment strategies, conduct interviews |
Compensation Analyst |
Design and manage compensation programs |
Ensure fair and competitive compensation practices |
Conduct salary benchmarking, analyze compensation data |
Learning and Development Manager |
Develop and deliver training programs |
Enhance employee skills and career development |
Design training initiatives, evaluate program effectiveness |
HRIS Specialist |
Manage HR information systems |
Streamline HR processes and data management |
Maintain HRIS database, generate HR reports |
Please note that the titles and responsibilities can vary across organizations, and these tables provide a general representation of typical HR roles in different company sizes.
Engagement Function for an Angel or Venture Funded Firm
The engagement function in a startup entity that is angel or venture funded can differ in several ways from the examples provided for small, medium, and large companies. Here are some key differences:
- Focus on Rapid Growth: Startups funded by angels or venture capitalists often have a primary focus on rapid growth and scaling. This emphasis on growth can impact the engagement function by placing a higher priority on attracting and retaining top talent to drive expansion.
- Agility and Flexibility: Startups typically operate in a fast-paced and dynamic environment. The engagement function in such startups needs to be agile and adaptable to quickly respond to changing business needs and employee requirements.
- Limited Resources: While small companies may also face resource constraints, startups often have more limited resources available. The engagement function needs to be creative and resourceful in designing initiatives that can effectively engage employees without significant financial investments.
- Entrepreneurial Culture: Startups tend to foster an entrepreneurial culture that encourages innovation, risk-taking, and employee autonomy. The engagement function plays a crucial role in nurturing and maintaining this culture by designing programs that support and reward entrepreneurial behavior.
- High Employee Expectations: Employees in startup entities often have high expectations regarding growth opportunities, learning experiences, and the impact they can make. The engagement function must focus on providing meaningful work, development opportunities, and avenues for employee involvement in decision-making processes.
- Startup Perks and Benefits: Startups may offer unique perks and benefits to attract and retain top talent, such as flexible work arrangements, stock options, or opportunities for career advancement. The engagement function plays a role in designing and implementing these perks to enhance employee satisfaction and engagement.
- Close-Knit Team Environment: Startups typically have smaller teams, leading to a close-knit and collaborative work environment. The engagement function may focus on fostering strong team dynamics, encouraging cross-functional collaboration, and creating a sense of camaraderie among employees.
- Investor Relations: In startup entities, the engagement function may also involve managing relationships with angel investors, venture capitalists, or other stakeholders. This includes providing regular updates on employee engagement initiatives, demonstrating the impact on business outcomes, and addressing any concerns or expectations raised by investors.
Other Resources:
- HBR: https://hbr.org/2021/10/how-companies-can-improve-employee-engagement-right-now
- Gallup: https://www.gallup.com/workplace/266822/engaged-employees-differently.aspx
- Forbes: https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2020/09/11/how-leaders-can-improve-employee-engagement—even-during-challenging-times/
- Achievers: https://www.achievers.com/blog/empower-leaders-become-engagement-champions/