1. Understanding the employee engagement drivers in the UK SMEs
Small and medium-sized enterprises (SMEs) are crucial to the UK economy but have been some of
the hardest hit by the current economic climate and the fierce competition for talent. However, despite
the challenging environment, some of these organisations are thriving.
Employee engagement goes beyond perception – it measures what it takes to make the company
successful. Engaged employees want to and actually strive to improve business results. While in the
past organisations may have debated the importance of employee engagement, today the power of
an engaged workforce is well understood and a sought after asset. More than ever, employee
engagement matters.
Aon Hewitt’s employee engagement model
Aon Hewitt’s employee engagement construct measures three vital behaviours that employees
display if they are engaged – Say / Stay / Strive. Furthermore, by understanding what drives
engagement and the relative impact each factor has on the current engagement level (improving or
lowering), organisations can then plan how to best allocate resources to motivate talent.
So how are UK SMEs faring?
Aon Hewitt analysis into employee engagement levels of UK-based employees working in SMEs
(including UK arms of multi-national companies) shows that 50% of employees are engaged, meaning
that just one in two employees want to and actually strive to improve business results. This must be
cause for concern for organisations who are reliant on these employees to help them navigate
through the challenges presented by the current economic climate.
The engagement score for these organisations is not materially different from the UK market overall
where 47% of employees are engaged, challenging the perception that it is easier to engage people
who work in smaller organisations, and indicating that SMEs are also struggling to manage the
employee engagement agenda.

2. More important than just measuring the levels of employee engagement, is identifying the drivers of
engagement. These are the levers that organisations can directly act on to improve levels of
engagement. Aon Hewitt’s research indicates that there are four key drivers of employee engagement
in smaller organisations:
1. SMEs need to demonstrate to employees that promises are being delivered. As one of the top
drivers of employee engagement in SMEs, this is also increasingly important compared to earlier
stages of the current economic slowdown. Having committed themselves to these smaller
organisations, where resources are likely to be more limited than in larger organisations,
employees are showing fatigue and are looking on their organisations to deliver on promises.
2. The role of line managers is critical to employee engagement, as it is in larger companies. While
satisfaction with the support received from line managers is similar to the UK market average with
approximately 60% of employees in both groups believing that they receive the support they need
from their line manager, employees in SMEs are less likely to state that their manager manages
issues of poor performance than in the UK market overall (44% vs 53%).
3. Availability of career opportunities continues to be an important driver of employee engagement
in SMEs, and is traditionally one of the areas where these organisations outperform the UK overall
benchmark. However, this is one of the areas where satisfaction scores in SMEs have decreased
most since 2010 with less than 40% of employees now stating that their managers provide
sufficient guidance on career opportunities.
4. Employees in SMEs are increasingly looking to leaders to provide direction on company goals
and change events. The proportion of employees in SMEs who are satisfied with senior leadership
and the communications received from leadership, is surprisingly similar to the wider UK market
overall (approximately 45% for both groups), yet leaders in these organisations should be more
visible and accessible to employees than in larger organisations. More is required of leaders in the
SMEs to connect employees with the goals and challenges in their organisations.
What are the implications for SMEs in the UK
Despite some differences, the challenges faced by SMEs are similar to the UK market overall.
However, this research raises some questions about how SMEs should respond. Why are issues of
poor performance not being effectively managed? Do managers lack the support or understanding of
how to deal with such issues? What promises are not being delivered? How can leaders better
connect employees with the vision and goals of their organisations?
Given the increasingly important role that leaders play in engagement levels in these organisations,
the leaders in SMEs need to set clear expectations for managers and employees, role modelling
behaviours in relation to performance management and ensuring that managers are empowered and
have access to the training and support networks to ensure that employees are being managed
effectively.
Jake Outram | +44 (0) 20 7086 9234 | jake.outram@aonhewitt.com
Laura Heathcock | +44 (0) 20 7086 9598 | laura.heathcock@aonhewitt.com
Aon Hewitt strongly advises that organisations must identify and prioritise their own engagement drivers, rather than relying
solely on practices in the external market.
About Aon Hewitt
Aon Hewitt is the global leader in human resource consulting and outsourcing solutions.
The company partners with organisations to solve their most complex benefits, talent and related financial challenges, and
improve business performance. Aon Hewitt designs, implements, communicates and administers a wide range of human
capital, retirement, investment management, healthcare, compensation and talent management strategies.
With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their
employees. For more information on Aon Hewitt, please visit www.aonhewitt.com.