Employee engagement is going to become more important with the upcoming proposed changes to employment law that are being discussed in Parliament currently. Do you understand them and the impact they could have?

The Employment Rights Bill is proposing changes that could mean employers will not only see then end of the two-year employment threshold for unfair dismissal claims, potentially giving employees rights from day one of their employment. It could also mean that everyone in the organisation will be entitled to sick pay from first day of absence which could be as much as 80% of their salary, which is potentially another big addition to the costs of employing people for many businesses.

This means then that there is a real need then for a focus on ensuring that employers have the right people for their business in place now, before any changes.  It is crucial then for businesses to put measures in place to ensure that their employees are highly engaged now, that they feel valued and supported and are where they want to be in their role and or career.

Why?

Put simply the research shows that companies with highly engaged teams are 21% more profitable and experience 59% less turnover (Gallup, 2024).  These are staggering percentages but what is perhaps more concerning for employers is that only 54% of UK employees report being actively engaged at work with 1 in 3 employees considering leaving their role within the next year (CIPD, 2024).

Why leadership matters to employee engagement?

Leadership has the biggest opportunity to positively or negatively influence employee engagement and research suggests that there is real scope for improvement. Indeed, the Workforce institute survey cited that 43% of respondents have left a role because of poor leadership but yet the CIPD 2025 report suggests only 32% offer training on leadership skills.

This leads me to wonder then just how many people within leadership roles have the self-awareness to realise or acknowledge how their behaviours might be contributing to poor employee engagement and retention.

There definitely seems to be an opportunity for companies to offer more training to their leaders and aspiring leaders.  I heard it said once that for every £1 you invest into employee wellbeing you can add £5 onto productivity and profitability.

It makes sense, by investing in things to help reduce stress levels and improve employee wellbeing there will be a consequential reduction in sickness levels, but also people are far more likely to work at a more effective speed and with improved focus and quality when they feel engaged and valued.

How do you build employee engagement?

This is a big question, but realistically it starts with strengthening your company culture and prioritising employee well-being.

I will try and summarise some of the key elements as a starting point, things like:

1. Communication is Key:

• Transparency and Open Dialogue:

Regularly communicate company goals, strategies, and performance updates to keep employees informed and engaged. 

• Two-Way Communication:

Encourage feedback from employees through surveys, meetings, and open-door policies. 

• Active Listening:

Managers should actively listen to employees’ concerns and act on their feedback. 

2. Creating a Positive and Supportive Workplace:

• Positive Culture: Foster a culture of respect, collaboration, and inclusivity. 
• Employee Wellbeing: Prioritise mental and physical health, and encourage work-life balance. 
• Team-Building: Build nonwork-related  time and activities to foster camaraderie and strengthen relationships. 

3. Providing Growth and Development Opportunities:

• Training and Development: Offer opportunities for professional development, supported with workshops, seminars, and peer to peer training. 
• Career Progression: Create clear paths for people to enhance their skills and personal growth within the company even if promotion opportunities are unavailable. 
• Autonomy and Flexibility: Empower employees with autonomy and flexibility in their roles and work arrangements. 

4. Recognising and Rewarding Achievements:

• Recognition Programs: Implement a structured recognition program to acknowledge individual and team accomplishments. 
• Praise: Recognise and celebrate employees’ successes to boost morale and engagement. 
• Incentives: Offer rewards and incentives for outstanding performance. 

5. Focusing on Employee Needs and Preferences:

• Employee Surveys:

Conduct regular employee engagement surveys to gauge employee satisfaction and identify areas for improvement. 

• Feedback Loops:

Establish regular feedback loops to ensure that employee voices are heard and acted upon. 

• Personalised Approach:

Be sure to tailor your engagement strategies to meet the individual needs and preferences of employees. 

Summary

The proposed changes to UK employment law, including the removal of the two-year threshold for unfair dismissal claims and the introduction of sick pay from day one of absence, could significantly increase employer responsibilities and costs. This means that the time to act is now.

Ensure you have the right people in place and foster higher levels of employee engagement and make investment into strengthening your culture and training your leaders as employee-centred strategies will be vital for navigating upcoming legal changes and enhancing long-term organisational performance.

Feeling confused with where to start, take the first step and book in for a virtual coffee with me.