Employee engagement review launched by John Hutton

Business secretary John Hutton yesterday announced government-funded a review to find new ways to boost employee engagement in British businesses.

The Review of Employee Engagement and Investment will make recommendations to address employers' failures to get the most out of staff. It will be led by David MacLeod, a non-executive director at the Ministry of Justice, and Nita Clark, the director of the Involvement and Participation Association.

"The most successful companies recognise that their employees are their most valuable asset," Hutton said. "We need to better understand what drives some businesses to engage with their workforce and invest in their people more than others and look at how we can urge others to do the same."

MacLeod said: "I look forward to working with the government on this exciting project, which will provide a unique opportunity to look, in depth, at how British business can maximise its potential and increase its competitiveness in the global economy.

"The fact that only about 12% of the UK workforce can be considered as highly engaged shows that there is potential for huge gains for the economy if we can improve in this area."

The review will begin early in 2009.