Are Your HR Processes Damaging Employee Engagement?

Are your HR processes damaging employee engagement? In summary:

• HR processes, policies and procedures directly affect employee engagement.
• Overly strict policies, ineffective performance management systems, and a lack of professional development opportunities are just some of the things that can make employees feel undervalued and demotivated.
• HR and leadership need to create employee-centred HR strategies to build a work environment where employees feel engaged and empowered to excel in their roles.

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Employee engagement measures how excited and dedicated people feel towards their job. And whether you like it or not, it’s directly related to how well the company performs.

So, where does your role as an HR professional come into play? Well, any HR team’s core objective must include having a positive impact on employee performance and thus drive business success. After all, you’re implementing the policies and procedures designed to manage a workforce effectively and create a productive environment.

However, even with the best intentions, some HR processes and policies – however well intentioned – can inadvertently damage employee engagement and sour the overall employee experience. In this article, we’ll help you identify these problematic HR practices and offer practical solutions to foster an engaged workforce.

1. Overly rigid processes, policies and procedures

The problem: There’s nothing worse than being micro-managed by your employer. Rigid processes and policies can make employees feel undervalued and restricted, leading to decreased morale and engagement. Not to mention it stifles flexibility and creativity.

Impact on engagement: Overly rigid processes, policies and procedures, such as work-from-home or time off guidelines, can lead to decreased motivation and engagement as people lack the freedom to manage their own time and work.

The solution: Review your processes, procedures and policies regularly and allow for flexibility where possible. For example, Gen Z employees – who are forecast to make up 27% of the global workforce by 2025 –  value both autonomy and work-life balance… would your policies cater for this growing cohort? To find out, send out regular surveys to get feedback and buy-in from your employees on your policies. After all, they’re made for the people, so make sure they resonate with them!

2. Ineffective performance management systems

The problem: Performance management systems (PMS) are meant to help employees grow and succeed, but poorly designed ones can do more harm than good. Deloitte’s research shows that 58% of HR executives find their performance management systems ineffective, and just under half say their performance processes are “weak” in improving development and driving business value.

Impact on engagement: When feedback is scarce and performance expectations are unclear, employees may feel undervalued and unmotivated in the workplace. Not great for productivity, and certainly not good for growth!

The solution: A great performance management system ensures a better experience for everyone. It should fit your company-specific approach and ways of working, and allow for continuous reviews and check-ins between managers and their teams.

3. Poor communication channels

The problem: Inadequate, unclear—or dare we say, lack of—communication leaves employees confused and frustrated.

Impact on engagement: There’s nothing worse than feeling left out of the loop, especially on something that directly involves you. Poor communication will leave your employees feeling like they don’t belong. Worse still, it erodes trust between them and their leaders, and of course decreases overall engagement.

The solution: Effective communication is the key to any long-lasting and fulfilling relationship. Ensure open, transparent, and consistent communication across all levels of your organisation. Ensure regular communication to show that you value your people. It can be as easy as scheduling team meetings (though please avoid ones that could have easily been an email), regular one-one-one check-ins, and direct communication from leadership.

4. Inadequate recognition and rewards programmes

The problem: Everyone likes to feel appreciated. When recognition and rewards programmes are lacking, employees may feel their hard work goes unnoticed.

Impact on engagement: Inadequate recognition can lead to… yup, you guessed it: decreased motivation and morale (noticing a trend here?). If your employees feel unappreciated, you can’t expect them to go above and beyond in their roles… what’s in it for them?

The solution: Our brains are naturally wired to thrive on recognition—it’s science! Empowering employee recognition results in higher well-being scores while increasing revenue. Implement a thoughtful recognition and rewards programme that values both individual and group achievements, both publicly and privately—and no, salary doesn’t count (though bonuses do…we don’t make the rules). Survey your teams to tailor recognition schemes to their preferences, ensuring they feel involved and valued.

5. Bureaucratic onboarding processes

The problem: A lengthy and convoluted onboarding process can quickly turn it into a frustrating ordeal and paints a poor first impression of your organisation. What’s worse? No onboarding process at all. In fact, did you know that nearly a quarter of all new employees didn’t hear from their new line manager before starting their role? Talk about starting off on the wrong foot!

Impact on engagement: The way candidates or soon-to-be employees view your company starts way before they even set foot in the office. Your onboarding process sets the tone for an employee’s experience with your company. Make it overly complicated and you risk leaving your new joiners feeling overwhelmed, disillusioned, and confused about their role.

The solution: HR processes are meant to simplify things, therefore, so keep them simple! An HRIS platform with an integrated recruitment software, for instance, can give you the tools and resources to streamline the hiring process and drive engagement across the entire employee lifecycle.

6. Lack of professional development opportunities

The problem: No matter your position, there’s nothing worse than feeling stuck in life. When companies fail to provide opportunities for professional growth, it can lead to stagnation and disengagement.

Impact on engagement: Without clear paths for development, motivation declines, productivity drops, and turnover rates rise as employees look for opportunities elsewhere.

The solution: Invest in continuous, multifaceted learning opportunities. Encourage development through workshops, mentorship programs, or offer financial support for accredited courses and certification. According to LinkedIn’s 2019 Workforce Learning Report, 94% percent of employees say that they would stay at a company longer if it simply invested in their career development, highlighting the importance of continuous learning opportunities.

7. Unfair or inconsistent HR practices

The problem: Fairness and consistency are crucial in maintaining trust and engagement within the workforce. Feelings of unfairness and perceived favouritism in treatment can damage the workplace faster than you can say “employee engagement”.

Impact on engagement: Unfair HR practices can lead employees to mistrust their organisation and leadership, ultimately leading to higher turnover. SHRM lists “unfair treatment” in the top five reasons employees leave their employers, globally… take note!

The solution: Make sure HR processes and policies are fair, transparent, and consistently applied across the board. How? By reviewing them regularly and training your managers to apply them uniformly and fairly throughout the organisation.

Final thoughts

Employee engagement goes way beyond job satisfaction. It measures how committed people are to your organisation and its success. It’s what makes the difference between a good employee and an invaluable one.

So, take stock of your current HR processes, policies and procedures: Are they flexible? Are you communicating about them regularly and effectively? Are you recognising your people’s hard work? Are you allowing for growth? If you answered no to at least one of these questions, you need to refocus your strategy and reinvest in your employees.

We guarantee that you’ll see the long-term positive impact it has not only on performance and productivity, but on your overall company culture.