You might have already heard the term employee engagement and you are aware that it is very beneficial to any workplace. But what exactly is it and why is it so significant?
Employee engagement is defined as the level of commitment your employees have to their jobs and to your organization. Engaged employees show up and are enthusiastic about their jobs, not only because they are paid to be, but because they truly care.
A company that encourages and supports employee engagement is going to reap a number of benefits, including better productivity and increased profitability.
Here are 6 reasons why employee engagement is crucial to your company’s success.
Higher Employee Retention
If your goal is to decrease employee turnover, you should pay attention to improving employee engagement. Research has shown that disengaged workers are 12 times more likely to quit their jobs than their highly engaged counterparts. This is because disengaged employees might not feel a connection and commitment to the company, which results in less effort and higher preparedness to leave when a more attractive job opportunity arises.
Employee turnover is not only costly (according to Gallup, the cost of replacing an employee can range from one-half to two times the employee’s yearly salary), but also tends to create a domino effect. If your best employees don’t see growth opportunities inside the organization, chances are they will look for such opportunities elsewhere.
Employees who are engaged are far more likely to be productive. That’s because they are passionate about what they do and because they are likely to stay in their positions for longer.
Demotivated employees, on the other hand, shy away from responsibilities and rarely contribute to brainstorming sessions. They lack motivation, are more prone to absenteeism and burnout, and drain the productivity of your business.
Employee engagement levels can have a significant impact on overall productivity. Studies have found that disengaged workers cost US companies $450-$550 billion per year. This is partly because of employees’ lower sense of responsibility and lack of motivation, which results in decreased productivity and more errors. For every $10,000 in salary, a single disengaged employee can cost a company around $3,400 in lost productivity.
Increased Customer Satisfaction
As mentioned before, engaged employees are more passionate about their jobs, happier, and more involved. This passion and happiness are contagious and will have a carry-over effect on your other employees, as well as your customers.
According to Emplify, organizations with high levels of employee engagement levels have 89% higher customer satisfaction and 50% higher customer loyalty than the ones with low levels of employee engagement.
Customers respond to friendliness, efficiency, and convenience. Unlike disengaged workers, the highly engaged ones will pay attention to details and look for a means to boost customer loyalty. In other words, engaged employees result in more satisfied customers, and all interactions that create a sense of satisfaction and happiness are likely to create lifetime customers.
If you retain your employees, increase productivity, and improve customer service, it makes sense that your sales and revenue will increase as well. Highly engaged organizations see 21% higher sales than those that are disengaged.
When building your employee engagement strategy, consider conducting employee surveys and offering perks in order to improve results. In addition, be sure to set clear expectations and provide your team members with the support tools necessary to do their best work.
Eight out of ten highly engaged employees believe their organizations have a culture that fosters innovation, whereas only half of the least engaged employees feel the same way.
An engaged staff is more constructive, dedicated to solving problems, and more innovative than disengaged ones. This is because workers who feel an emotional connection to their jobs will be more motivated to find ways to solve issues that no one else can think of and bring their best ideas to the discussion table.
Originality and innovation are two key traits that can help set your company apart from the competition. So, if you fail to understand the value of engaged talent committed to your business, your competitors who have prioritized employee engagement will dominate in the marketplace.
Better Company Culture
An engaged staff is the foundation of any happy and productive workplace. Considering the fact that a company is nothing without its employees, it’s crucial to design company policies around creating a positive culture, while at the same time discouraging outdated and toxic customs or mindsets.
In addition, incompatibilities between your workforce and your company culture must be eliminated. The workers who most share the organization’s culture and values need to be appreciated, rewarded, and cared for.
As you can see, employee engagement is absolutely essential for any workplace. From attracting top talent to decreasing turnover, and increasing profitability, companies that prioritize employee engagement and make sure their workers are feeling like their work matters will experience more success than the ones that don’t.