Companies should not let the recession make them forget about the importance of employee engagement.

That is according to talent management company Taleo, which has conducted research revealing that only 50 per cent of employees believe their appraisals are constructive.

The research also showed that just 42 per cent of those questioned could see how they might progress in their company and only 45 per cent felt job opportunities were advertised properly.

Taleo has suggested these results are indicative of the fact that companies are not engaging their employees.

Commenting on the implications of the research, Alice Snell, vice president, Taleo Research, said: "HR directors need to ensure a higher level of employee engagement in these challenging times. Otherwise they risk losing talented employees. In 2008, the average staff turnover rate in the UK was still 17.3 per cent."

Ms Snell suggested that without engagement, employees will look to other companies where they may be able to find a "structured career path and job security".

According to other research conducted by Taleo, nearly a third of people wanted their performance review to be tied to compensation.