Government resources must be aligned and HR practitioners must work together to create fully engaged workforces, according to David MacLeod and Nita Clarke,authors of the MacLeod Review.

Speaking at The Art of Engagement conference at London Business School on Friday, Clarke said: "[Business secretary] Peter Mandelson asked us if employee engagement really mattered during a recession or if it was just a ‘nice thing to do'. But I think there is a real need for all employer and stakeholders do focus on engagement - it is not just a matter for Government policy."

The MacLeod Review, published in July, recommends the Government should work to raise awareness of employee engagement benefits, and support employers hoping to enhance levels of employee engagement. Practical support for companies is also expected to be available by March 2010.

Speaking at London Business School on Friday, MacLeod said: "This was a report to Government, not from Government, so we were able to say what needed to be said - and there is evidence of correlation between engagement and productivity."

And David Smith, former people director at Asda, added: "There is absolute positive correlation between engagement and profit and loss. Engagement - especially at a high level - benefits profit."

Smith recommended employers boost engagement by hiring outgoing people, "overdose" on staff communications, listen to staff concerns, bring in a "non-militaristic" managerial style, remove underperformers in the business, implement dynamic staff recognition policies and try and make the organisation a "fun" place in which to work.