“Engaged employees outperform disengaged employees by 20-28%.”- The Conference Board
Why is employee engagement important?
The Conference Board statistic should speak for itself in terms of why engagement is such a necessity for the workplace.
Everyone knows having happy employees is important but there is a lot more to it.
For an enterprise to be successful each employee is crucial, you need to ensure that your workforce is engaged and switched on.
Once employees are engaged and enthused the enterprise runs like a well-oiled machine.
Efficiency goes up, company culture improves and the business thrives.
However, if employee disengagement gets thrown into the works, projects can fail and ROI goes down.
Shockingly a study conducted by GALLUP found that only 30% of American employees felt actively engaged in their job.
These statistics really highlight the fact that while people understand employee engagement is important, very few enterprises are following through.
Businesses can often prioritize other company objectives above employee engagement.
Employee disengagement can spell catastrophe for an organization.
Leigh Branham, the author of The 7 Hidden Reasons Employees Leave, found that 89% of bosses believe their employee quit because they wanted “more money.”
However, Branham found this is not the case, this idea that employees want more money can be a scapegoat for “manager wrongdoing.”
In fact, only 12% of employees leave for that reason.
But, employee retention is just one of the benefits of an engaged workforce.
We’ve analysed the topic and found 5 key reasons employee engagement needs to be a priority for you!
1.Improved company reputation:
Your employees are the lifeblood of your business.
What they tell people about your company can have a huge impact on your public reputation.
If your employees are happy and engaged, they will praise the company they work for and spread a positive word.
This can result in more business and an image boost.
However, if the opposite happens, employees are disengaged and unhappy they can spread a negative image of the business.
This can cause your company to develop a negative public image, word of mouth is an incredibly powerful tool.
Similar to the positive scenario, a bad public image can seriously impact business.
Keeping employees happy and engaged is sure to have a positive impact on the business.
2. Less sick days:
Studies on this point found on average, engaged employees only take 3.5 sick days a year while disengaged employees take 10.7 sick days.
Every sick day costs the business money, having your employees engaged can save you around 64% in sick pay.
In huge enterprises, this saving can quickly add up.
So, not only does having engaged employees reduce the cost of sick pay; It also results in enhanced productivity.
3. Better staff retention:
Studies found that employees who are engaged are 87% less likely to leave your company.
This is fantastic for business because, not only is employee turnover disruptive for the business but, it also creates added expenses.
Turnover results in recruitment and training costs as well as a period where no one is filling the position.
Keeping your employees engaged avoids this scenario while also creating a loyal workforce.
4. Better productivity:
Ask yourself, do you work harder when your down in the dumps or when you’re actually positive and passionate about a project?
Employee engagement shows in productivity, happy people are productive people.
When employees feel a connection to their company, they are more compelled to put the extra effort in.
When employees are engaged they feel that their work is making a difference, this compels them to work harder.
Often if disengagement occurs, employees lose motivation and begin to question what the point of the work they’re doing is.
This productivity decrease can be a huge financial loss for the business.
By keeping your employees positive the workplace can completely shift and improve.
5. Increased customer satisfaction:
If you take care of your employees then they will take care of your customers.
When staff are happier and more energetic customers can tell, it makes for an overall more positive experience.
A study done by Temkin found that companies that excel at customer service had 1.5 times as many engaged employees as businesses who had a terrible customer experience.
Nothing is more obvious than an employee who doesn’t believe in their own product/service.
Disengaged employees can really affect business.
A good business must start with your employees.
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