6 Reasons Why Employee Engagement is Essential for Business Success
Employee engagement means developing a workplace where employees feel valued, motivated, and productive. Strong employee engagement is an important aspect of any successful business. However, in today's workplace too many employees are feeling disengaged in the workplace, which leads to low morale, productivity, and high turnover. In a Gallup report on the State of the Global Workplace, only 21% of employees report feeling engaged at work, with most saying that they don't find their work meaningful. The same report found that "low engagement alone costs the global economy $7.8 trillion".
Creating a positive workforce is an increasingly important objective for business owners and executives. When employees are engaged and motivated, they are more likely to put greater effort in their work, leading to improved results. Companies that invest in creating a culture of employee engagement can reap numerous benefits such as increased productivity, better customer service, higher profits, improved safety, better collaboration and more.
6 Reasons Why Employee Engagement is Essential for Business Success
Here are 6 reasons why employee engagement is essential for business success and strategies for how to create an engaging work environment:
1. Higher Productivity
Engaged employees are more productive and bring higher quality work output than less engaged employees. According to Gallup's most recent employee engagement meta-analysis, teams that scored in the top quartile on employee engagement had 18% higher sales productivity.
The correlation between engaged employees and productivity is critical to long-term business success. When employees are engaged they are more motivated, creative, and innovative in how they go about their work. This is because they feel a greater sense of connection with the work they do and responsibility for their duties. Engaged employees are better at finding opportunities to improve efficiency and productivity because they collaborate more with other team members, and are more likely to go the extra mile in putting greater effort into tasks and projects.
2. Lower Turnover Rates
Engaged employees are less likely to leave their current position. According to Gallup, teams with employee engagement in the top quartile have up to 43% lower turnover rates than all other teams.
When employees feel valued and appreciated by their employer, they are more likely to stay with a company longer, which leads to better retention of key personnel and their knowledge and skills. Companies that invest in employee engagement tend to have more employees with tenures of a decade or more, feel more invested in their work, and are in job positions that best align with their skills and interests. These critical factors not only lead to lower turnover rates, but also reduces costs associated with employee turnover such as the cost of recruiting and onboarding new employees.
3. Improved Customer Experience
Engaged employees are more likely to provide better customer service and increase satisfaction. A joint study by Culture Amp and Zendesk found that companies with employee engagement scores above their benchmark scored 10% higher on customer satisfaction than companies below the benchmark. The same study also found that companies with high employee engagement scores had 2 to 3 times more top performers whose customer service scores were 16% higher on average than low-performers.
When customers interact with engaged employees, it creates a more positive experience from beginning to end. Engaged employees are more likely to go above and beyond in meeting customer needs, providing knowledgeable advice, and addressing customer complaints with empathy. Engaged employees also have a greater sense of ownership for their work, leading to improved problem-solving skills and better decision-making. All these factors contribute to higher customer satisfaction rates and loyalty which ultimately leads to more business success.
4. Increased Profits
Engaged employees are essential for business success because they can drive increased profits and revenue. According to Gallup, employee engagement is directly correlated to the bottom line, the profitability of companies that have a highly engaged workforce outperforms their peers by 23%.
Engaged employees are more productive and innovative, leading to better problem-solving and decision-making. This approach to work leads to increased efficiency, higher productivity coupled with higher work quality, and improved customer service. All of these factors lead to higher profits and revenue growth for businesses.
Moreover, employee engagement leads to increased employee loyalty which leads to better retention rates. This allows companies to benefit from the knowledge and skills employees have acquired over the years, instead of needing to constantly recruit and train new personnel. Businesses are then able to lower employee turnover costs which lead to higher profits over time.
5. Improved Safety
Employee engagement also has a positive impact on employee safety. Engaged employees are more likely to pay attention to safety protocols, follow the rules and regulations, and take necessary precautions to avoid hazards in the workplace. According to a paper from Harvard T.H. Chan School of Public Health, "engaged workers are more aware of their surroundings and best practices around safety, and are more likely to take steps to protect their co-workers."
The safety and well-being of employees at work are important objectives for all companies. When employees feel appreciated for their work and that their opinions are valued, they take safety protocols more seriously. Engaged employees are also more likely to speak up if they feel that safety protocols are not being followed, which is a great source of input to improving workplace safety.
6. Improved Culture
Employee engagement creates a positive and inspiring working environment. When employees feel valued, it fosters open communication between colleagues and creates an atmosphere of trust and respect. It also encourages collaboration as team members are more likely to offer their ideas and take on tasks knowing that their contributions will be appreciated.
A culture of employee engagement also allows employees to identify with their work and the company as a whole. They feel that they are part of something bigger than themselves which can help them stay motivated, inspired and productive at work. This leads to higher employee satisfaction which further drives a more positive corporate culture.
Having a culture of employee engagement also helps businesses attract and recruit top talent. When potential job seekers see that a company values their employee's opinions and contributions, they are more likely to want a role in that business. This can create a competitive advantage when it comes to hiring the best people because top performers want to work in stable work environments where their contributions are valued.