Employee engagement is key to the success of any business. Every year, companies lose $450-500 billion due to disengaged workers and overall low employee engagement.
This means that if you are not engaging your employees in a way that makes them feel valued and appreciated for their work then they will leave or be less productive than they could otherwise be.
- Engagement increases productivity
Gallup polls show that employees who are committed to their company are 22% more productive than their uncommitted peers. This is because the more engaged an employee is, the better his or her communication, encouragement, positivity, and contributions in the workplace. These contributions are more likely to be done by engaged employees, who are proud and happy to come to work every day feeling appreciated and valued for their hard work. Therefore, an effective way to improve workplace engagement is to create challenges for employees.
Employee engagement statistics show that highly engaged employees lead to an increase in profitability of 21%, lower turnover rates of 31%, and an 80% customer retention rate. 58% of employees wish their employer would conduct employee engagement surveys.
- Originality and innovation position you above the competition
Engaged employees are dedicated to solving problems more creatively, are more constructive than most employees, and maintain the innovative leadership that is a must in any organization.
Every company requires innovation at its core if it is to survive in competitive markets. It has to find unique ways to solve problems that no one else can think of, relying on originality and innovation to position itself above the competition. You will most likely get innovation from engaged employees. Its great long-term benefits are many and important.
So, if you don’t understand the value of engaging your employees, then your competitors who do understand this value and have prioritized employee engagement will easily dominate you in the marketplace. This should not be allowed to happen and you must realize the great importance of innovation and talent committed to your organization. Try Affiliate marketing, this is an advertising model in which a company pays others (e.g., bloggers) to advertise their products and services and generate sales.
- Strong brand identity
A company’s organizational culture represents its public image and reputation. People make assumptions about businesses based on their interactions within and outside of the company.
If it lacks organizational culture or has a weak image, customers may hesitate to do business with anyone who is associated with the brand. Companies all over the world are now fighting to erase this negative image of customer service. Businesses with a strong brand identity tend to attract more business and job candidates with similar values who support their mission.
- Employee engagement reduces turnover
The average American spends one-third of their life at work, so it stands to reason they want to like what they do and who they do it with. If your employees don’t care about their work or your goals, they’re not going to stick around. Actively disengaged employees are 12 times more likely to quit than their engaged colleagues. What’s worse, employee turnover creates a ripple effect. Your top performers know their worth and can easily get another job — 53% are confident they’ll find a comparable position within six months. If your best people start to leave, the rest of your team will look around the office, wonder “What am I missing?” and pack their things.
Improving employee engagement encourages individual contributors to invest in your team, helping you retain top talent. If you’re currently experiencing high turnover, get in front of a mass exodus by figuring out what is driving people away and how you can improve.
- Employee engagement is profitable
It makes sense that companies with employees who work harder, serve customers better, and stick around for longer are more profitable than organizations with disengaged workforces. Consider the above three benefits: reducing turnover cuts down on the cost of hiring new employees; improved productivity means more business-driving products, ideas, and strategies are developed; increased customer satisfaction leads to more sales. All of this drives profitability.
A highly engaged workforce infuses passion and energy into every corner of your business, generating higher profits in return.
If you’re not yet convinced of the financial impact improved engagement levels can have, know this: investing 10% more in employee engagement efforts can increase profitability by $2,400 per employee annually.