How Employee Engagement Can Keep Your Business Alive and Kicking
⏱ Reading Time: 8 minutes
Every business organization aims to maximize its profits and soar high in success. But, the accomplishment of this goal is not an easy task. This happens primarily due to the competitive environment of the business world. But effective business strategies are the key to success.
Employee engagement is one such strategy. It is often termed as the elixir of success for business organizations. This is because it offers plenty of benefits that can keep your business alive and kicking.
In this blog, we will dig deeper into how employee engagement can keep your business growing. After that, we’ll take a look into how you can boost employee engagement in your company.
Benefits of Employee Engagement
The success of your business organization is dependent on the profits. Thus, making huge profits is one of the most important goals of your organization. Employee engagement can help you achieve it easily.
According to a report presented by Gallup, an engaged workforce shows 21% greater profitability. Further, research conducted by Aon Hewitt, shows that a 5 point increase in employee engagement results in a 3 point increase in revenue. Both these results can be attributed to the fact that employee engagement drives dedicated and devoted working from your employees. Therefore, employee engagement can skyrocket your organization’s profitability.
Picture 1. Employee engagement impacts both profitability and productivity
According to a report presented by Gallup, engaged employees are 27% more likely to deliver excellent performance at work. This implies that employee engagement magnifies employee productivity.
Offers Competitive Advantage
The world of business is a highly competitive one. This makes it challenging for companies to establish their uniqueness and excel. However, by establishing a culture of absolute employee engagement, you can overcome it and lead your organization ahead in the competition.
According to Business2Community, organizations with high employee engagement outperform those with low employee engagement by 202%.
Furthermore, research from Alex Edmans, also indicates that companies with more than average employee engagement, exceed the financial performance of their competitors by nearly 73%. This finding also highlights that employee engagement can help your organization beat competition.
Employee retention plays a significant role in your organization’s success. This is because high turnover costs your company’s work consistency and performance. A single employee leaving your organization breaks the chain of work. Although you can replace the broken link, it requires a huge investment of time and resources to do so. Thus, employee retention is important for your organization’s success
According to Gallup, organizations scoring the top 20% in employee engagement have 59% less turnover. Thus, employee engagement promotes employee retention and reduces turnover.
This point is further added to the above-mentioned point. According to Josh Bersin from Deloitte, the cost of losing an employee can range from tens of thousands of dollars to twice their annual salary. This is a huge cost and employee engagement saves you from bearing it by reducing turnover.
The absence of a single employee impacts the performance of the entire team. As a result, employee absenteeism takes a huge toll on your organization’s performance. This makes it crucial for you to work on reducing it.
The Gallup workplace report shows that organizations with engaged employees have lower employee absenteeism rates by up to 41%. This finding highlights that you can lower employee absenteeism with employee engagement.
Engaged employees are enthusiastic, passionate, and committed towards their work and organization. As a result, they display a low rate of absenteeism. Whereas, disengaged employees, not passionate and committed towards their work and workplace.
Better Customer Experience
Your customers are the lifelines of your organization. So, it is necessary for you to keep them happy and satisfied with their good customer experience. The best way to make this happen is employee engagement.
In its 2016, Employee Engagement study, Temkin Group found that companies excelling at customer experience have 1.5 times more engaged employees than the ones lacking in customer experience.
Engaged employees visualize their growth in your organization’s growth. Thus, they take extra care while dealing with your precious customers.
Now that you are aware of the ways in which employee engagement can keep your business alive and kicking, you might be wondering about ways to establish absolute employee engagement in your organization.
If so, let’s discuss some effective ways to convert your workforce into an engaged one.
Picture 2. Employee engagement and its importance to CX
7 Ways to Achieve Employee Engagement in Your Organization
1. Allow Your Employees to Work in Their Own Way
According to the American Society of Employees, micromanagement can destroy employee motivation, creativity, job satisfaction, and it is the biggest complaint employees have.
This throws light on the fact that micromanagement acts as a degrading force for your employees. As a result, it negatively impacts their engagement in work.
It is advisable for you to avoid micromanaging your employees. Instead, you should try to let them work in their own way. As you do so, your employees will feel happy to be able t0 enjoy their freedom. Consequently, they’ll work with great eagerness.
2. Recognize Your Employees’ Good Work
Recognition serves as an important building block for employee engagement. By recognizing your employees’ efforts, you not only make them feel happy but also valued. Both these feelings, make your employees bubble up with the spirit to work in an even better manner.
A report presented by Gallup also indicates the same results. It says that if organizations double the number of employees who gain recognition, they’ll experience a 24% increment in quality and a 27% reduction in absenteeism. Both these are signs of enhanced employee engagement. So, it is by extending your recognition to your employees that you can convert them into engaged ones.
Furthermore, it is always better to recognize your employees publicly. This is because public recognition not only inspires the one being recognized, but it also inspires the rest.
3. Promote Healthy Relationships Between Your Employees
According to the quantum workplace, employee engagement increases when employees have healthy relationships with each other. This happens because improved relationships between employees enhance their emotional connection with the organization. This enhanced emotional connection further fuels their engagement at work.
So, you can enhance employee engagement by promoting healthy relationships between your employees. Organizing get-togethers, gaming sessions, and group discussions are some effective ways to do so.
Picture 3. Work on connecting your team in the best possible way
4. Invest in Your Employees’ Well-being
Making your employees feel valued is vital for converting them into engaged ones. Further, the best way to make them feel valued is by investing in their well-being. A report presented by the American Psychological Association also validates the same. It highlights that 89% of workers working at companies, which support employee well-being initiatives are more likely to recommend their company as a good place to work.
If you’re looking for inspiration – stress management programs, yoga classes and health check ups are some examples of employee wellness programs. You can organize any of these in your company.
5. Encourage Collaborative Working
A survey conducted by the ADP research institute highlights that working in a team promotes employee engagement. One prominent reason behind this is that teamwork promotes mutual understanding between employees. As a result, better employee relationships begin to flourish. As discussed above, better employee relationships enhance employee engagement.
6. Derive Employee Feedback
Deriving employee feedback is important for enhancing employee engagement in your organization. A report from Salesforce highlighted that employees who feel that they have a say in the organization, are 4.6 times more likely to feel empowered to perform their best at work. When you listen to your employees’ grievances, you make them feel valued. As a result, they display high engagement in work.
7. Establish a Happy Work Environment
According to One4all, 39% of workers will work harder if they are happy. This implies that happiness plays a significant role in enhancing employee engagement. So, it is vital for you to establish a happy work environment. You can do so in many ways such as recognizing your employees, organizing games and fun outings.
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To conclude, employee engagement offers many benefits. All these benefits together promote your organization’s high profitability and performance.
Thus, employee engagement is an elixir to keep your organization alive and kicking. You can promote employee engagement in your organization by following the 7 ways mentioned above.
Jessica Robinson is a woman of words, who brings with her an experience of a decade. She is an educational writer and has even penned down many motivational blogs for various websites. She spills the magic of her thoughts through her blog ‘The Speaking Polymath’. In this blog, she makes the reader experience her management proficiency along with her skill to resolve matters of global importance.
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