By Daniel Hunter

UK companies are failing to put the right people strategies in place to meet critical business challenges, according to new research from global management consultancy Hay Group.

Based on data from over 500,000 UK employees, the research identifies collaboration, agility, transparency, innovation and productivity as the five key challenges facing UK businesses over the next fifteen years.

Overcoming these challenges will depend on an engaged and enabled workforce. Yet engagement and enablement levels in many UK businesses haven’t improved since 2008.

Martin Palimeris, Senior Consultant at Hay Group, says: “The business environment is rapidly changing. Our research shows that many companies don’t currently have the right strategies in place to respond to the challenges this brings through arguably their most critical asset — their people.

"Firms rated highest for engaging and enabling their staff achieve four and a half times the revenue growth of their lowest scoring counterparts and see up to 54% improvement on staff retention. People are the linchpin to sustaining performance in this rapidly changing world, and organisations need to wake up to this. The successful organisations will be those that realise their employees are a unique asset and can help them meet the challenges both now, and as they intensify in the future."