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Research conducted by the Great Place to Work Institute has shown three quarters of employees in the UK's 50 'Best Workplaces' want to stay with their company for the long term.

This represents quite an increase in loyalty compared to previous studies which can partly be attributed to improvements in employers' approach to HR. Their studies reveal that "75% of employees think promotions go to those that deserve them, an increase on 2003's 64%. And 82% of workers claim management shows appreciation for good work, while 79% say their managers respond well to new ideas." However, the authors acknowledge that the uncertain economic climate may also explain the change.

Business value The research methodologies being employed to determine the 'best workplaces' are obviously inherently people oriented. For example, Best Companies, the organisation behind the Sunday Times Top 100 Companies list categorise their research questions as follows:

• Leadership measures how people feel about the head of their organisation, the senior management team and organisational values
• Well Being measures stress, pressure, the balance between work and home life and the impact of these factors on personal health and performance
• My Manager measures whether people feel supported, trusted and cared for by their immediate manager
• My Team includes encouraging team spirit, feeling part of the organisation, having fun, and belonging
• My Company focuses on how much people value their organisation, how proud they are to work there, and whether they make a difference
• Personal Growth examines whether people feel challenged by their job, whether their skills are being utilised and their perceived opportunities for advancement
• Fair Deal includes how well employees feel they are treated and how their pay and benefits compare to similar organisations
• Giving Something Back explores how much people think their organisation puts back into society and whether they believe this effort is driven by profit motives

With findings of such research being so publicly exposed, and with bloggers and Facebook groups capable of attracting audiences in their millions, organisations with outdated HR practices really have nowhere to hide. Brand reputation used to be in the safe hands of brand managers, it is now in the hands of the public and an organisations employees. The truth will prevail. Share value will be influenced by a few pence which converts to huge amounts in market capitalisation and tangible balance sheet value.

In the UK, 50% more employees are actively disengaged than engaged as this Gallup chart shows:

The challenge for British business is to readdress this balance and match progress made in the US.

Employers should also recognise that more of the features of 'Best Workplaces' listed above are becoming hygiene factors when choosing an employer, and so employers need to work even harder. We would argue that the differentiators and drivers towards employee engagement are where values between the employee and employer are inline i.e. 'My Company' in terms of believing in the organisation and what it stands for and 'Giving Something Back' - does the employer is genuinely wants to make a difference in the society in which it operates.

The psychology of engagement To get to the root of employee engagement we must think about the psychology that underpins our working lives - which typical occupies a third of our time. The psychologist Mihaly Csikszentmihalyi carried out extensive studies into engagement that culminated in his seminal book "Flow".

'Flow' is a term Csikszentmihalyi uses to describe the mental state when an individual is fully immersed and succeeding in an activity. For example, when a top sports person, musician or artist is at the top of their game yet they feel the activity is effortless.