29 Sep Top 5 Benefits Of Focusing on Employee Engagement
What is Employee Engagement?
Employee engagement refers to the emotional commitment of the employee for their job, for the company they work in, and for the company’s goal.
If they are committed, they will work and they will be effective, if they are not committed, they will obviously not work whole-heartedly and this can lead to average or lower than the average performance of that person.
But why does this happen?
Big companies spend millions on the welfare of the employees and they make sure that the employee is paid enough. An employee is the driving force of any business and they are the best asset that your business or company has. Now like any other asset, you have to maintain them, but as humans are emotional beings, you have to keep them happy too.
If they are not paid right, or if there is anything wrong, their mood will be down and this will definitely affect their performance and their engagement.
The world works in a tit for tat manner. If you want them to go all out for you, you have to go all out for them.
Here are some reasons why you should focus on Employee Engagement:
- Improved Employee Retention:
We all know that employee retention is expensive. If someone leaves, you have to replace them and this costs efforts and a full hiring process. Then you have to train the new employee and it takes approximately 2-6 months for the new employee to settle. This will definitely cost you a lot. Studies show that the cost of one worker leaving an organization could be as much as $ 25,000. This shows the importance of improving employee engagement in your project roadmap. As if the employee is not engaged, they are not happy at your job, and they are more than likely to leave as soon as they find a slightly better job.
Even if they are getting the same salary, they will leave you, once they are not happy and engaged.
- Higher Productivity:
If an employee is happy, they can work more effectively and efficiently. The mood has a huge impact on our work. If you want motivated employees, that is, employees that work towards the company goal, you have to work on employee engagement. They will even work more than what they are expected to do if they are engaged. Based on a research by Gallup, the performance of engaged employees is 21% better than that of disengaged employees.
Below benefits can be achieved with higher productivity:
- Higher Profitability
- Employee Welfare
- Higher Returns to Stakeholders
- Better Relationships between Management and Employees
- Customer Satisfaction
- Higher credit Rating
- Corporate Image
- Better Terms for Suppliers
- Less Employee Turnover
- Speedily and efficiently achieve your objectives
- Increased customer satisfaction:
Employee Engagement has a huge impact on your business’s Client Management. As I have told earlier, happy employees = happy customers.
Engaged employees believe in what they are working towards and thus they do better work. Engagement motivates them to go the extra mile to satisfy the customer and thus this allows them to offer the best recommendations and insights to the clients and the prospects.
Imagine going out to eat, there are two restaurants that have the food of same taste, one has better service and slightly higher prices, the other has lower rates but poor service, which one will you choose?
Majority of people will prefer better service. Product is important, but the experience that the business or company provides matter too. People will pay more for better service. And when clients are happy, they become loyal clients, and thus they also start word-of-mouth advertisements for you.
- Increased Profits:
The profits that are earned are dependent on how your assets work. The biggest asset that you have is your employee. An engaged employee will work better and will try to achieve all the company/business goals. An engaged employee is an invested employee and therefore they will start working as hard as the boss does.
This shows how important employee engagement is for your business. The biggest asset that you have is your employee and sadly, that is the asset that you handle in the poorest way.
- Increased reputation:
It is said that if you want to know how a person really is, you should ask their servants how he/she treats them.
Likewise, your business’s or company’s ambassadors are your employees. If they talk well about you, your reputation in the market will increase and if they talk ill about you, your reputation will obviously decrease in the market. A person who cannot satisfy his/her employees, how will they satisfy the clients?
A happy employee will speak well about you and your business/company and thus they can boost your reputation, and vice versa.
Shyamal is the Founder of SmartTask, an online work management tool that’s helping teams be more productive by having clarity on who’s doing what by when. Has a penchant for researching and sharing strategies that could benefit a team’s productivity.