Involving employees fully in the future of the firms they work for will be a key step if businesses are to innovate and take advantage of new opportunities, an independent review announced today.

The MacLeod Review of employee engagement has recommended government support and more cooperation by UK businesses both large and small, to make sure the relationship between employees and employers is at the centre of successful business plans.

Led by David MacLeod and Nita Clarke, the review was commissioned in September to make recommendations on promoting employee engagement.

David MacLeod said: “This is about unleashing the potential of people at work and enabling them to be the best they can be. Whether we are in a downturn or in better economic times, engagement is a key to innovation and competitiveness.

“Engagement is increasingly recognised as vital by senior figures in the public sector, the private sector and trades unions. We are delighted that if our recommendations are accepted, a distinguished sponsor group has already agreed to work with us to raise awareness and understanding.”

The MacLeod Review has recommended:

•  The government should work to raise awareness of employee engagement benefits and techniques.
•  A senior sponsor group bringing together representatives from business, the public sector, not-for-profit organisations and unions, should be set up to boost understanding of this vital topic – many leading figures leaders have already agreed to be part of this group.
• The government and its agencies should work together to ensure their support is aligned and tailored to the needs of different organisations in different sectors of the economy seeking to enhance levels of employee engagement.
•  A range of more practical support for organisations who want to raise levels of employee engagement should be made available by March 2010. This support should be designed in consultation with businesses and other organisations to ensure it is tailored to their needs.

Contributors to the review included some of the biggest names in British business, as well as smaller firms and public sector bodies.

There has been broad support review's findings. The Chartered Institute of Personnel and Development (CIPD) said it “strongly supported” the recommendations of the review. The Chartered Management Institute also backed the proposals.

Employment relations minister Lord Young said: “Workers know better than anyone how the firm they work for can improve, innovate and succeed. For any business, large or small, a committed and involved workforce is essential.

“David MacLeod and Nita Clarke’s review has found excellent examples of good practice in the UK and has set out how employee engagement can boost the economy, improve opportunities at work for millions of people and protect jobs.”

He added: “Employee engagement will be a key part of our strategy and it is an opportunity that businesses cannot afford to miss.”