Employee engagement is profitable for both your company's bottom line and the overall work environment. By improving profits and making your workplace more attractive to employees, you can gain a serious advantage over your competition.
Employee Engagement Is Profitable.
Fact: Employee engagement really pays off - a company with engaged employees saw a 19% increase in operating income. By contrast, those without employee engagement saw a decrease of 33% in the same area of income.
Engaged Employees Are More Productive.
Did you know that an engaged employee is about 25% more productive than one who is not? Additionally, employees who feel valued and connected to their employers are at lower risk for leaving their company. Specifically:
- 26% of Engaged Employees would leave their current job for just a 5% pay increase.
- 46% of Partially Engaged Employees would leave their current job for just a 5% pay increase.
- 69% of Disengaged Employees would leave their current job for just a 5% pay increase.
Companies who actively recruit with the mentality of employee engagement generally attract the top talents in their fields and produce a higher profit for shareholders.
Employee Engagement Breeds Loyalty.
Engaged employees also perform well on performance reviews and tend to call out of work less often. When change happens in the workplace, your engaged employees are the most consistently supportive, trusting that the change is beneficial for the organization and taking an active role in implementing it.
How To Begin The Process Of Employee Engagement.
After learning that employee engagement can result in a lower turnover, more productivity and higher profits, are you ready to begin an employee engagement program? Here are two simple ways to begin:
- Just Thank Your Employees - Are your employees meeting your expectations? If so, say "thank you." Especially in a difficult economy, employees put in extra time and effort to maintain productivity. As the economy turns around, you will lose these dedicated employees if you do not provide recognition for their extra efforts. Engaging such employees starts with a simple "thank you."
- Provide Recognition Consistently - After you have created incentive and space to motivate an employee to perform, provide a way for direct managers and coworkers to recognize effort that goes above and beyond what is required. This not only lets the recognized employee know that he or she is doing a good job; it shows others that positive contributions are rewarded.
Executive Summary: Employees who feel motivated towards company success must also feel valued. The process of employee engagement begins with thanking an employee for his or her hard work and understanding how such behavior directly correlates to the success of your company. Remember, disengaged employees can have a huge financial impact - from high employee turnover to your business' productivity and level of innovation.
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