Employee engagement 'goes beyond looking at staff as a resource'

Small businesses are perfectly positioned to take advantage of employee engagement and all the benefits this offers, according to one industry commentator.

Michelle Bailey, managing director of small business HR (human resources) specialist Peopleessentials.co.uk, claimed that SMEs (small to medium-sized enterprises) can enjoy higher profits, lower absenteeism and better sales by going the extra mile with their staff.

"It goes beyond looking at people as a resource and trying to treat them as individuals," she added.

Ms Bailey went on to suggest that when both the organisation and the employee are getting something out of the business, better all-round performance is the result.

However, in a counterpoint to these comments Daniel Callaghan, founder of freelancing marketplace MBAandCo.com recently suggested that the financial climate has led UK companies to increasingly rely on outsourcing to keep staff levels and costs down.