The Importance of Investing in Employee Engagement
The Importance of Investing in Employee Engagement
It may seem obvious that employee engagement is an important factor for a well-performing organisation. This has been researched and the results are always the same. But what does this term employee engagement actually mean and how can improving employee engagement programs positively influence your business?
We speak of ‘employee engagement’ that pertains to when talents understand and are committed to the values and objectives of an organisation, and when they are passionate and motivated to achieve its goals. This motivation drives employee productivity and improves company retention and profitability.
However, an engaged workforce does not come easy. It’s a two-way street. An organisation must do its best to involve its employees and encourage and inspire employees to show their commitment in return. It’s a symbiotic relationship where both the employer and the employee support each other; if one side fails to support the other, engagement will quickly diminish.
At the end of the day, a good employee engagement program is essential for every company to ensure that their teams are happy and satisfied at work. Investing in employee engagement will always drive positive results.
What Happens If Companies Lack a Good Employee Engagement Program?
A lot of articles focus on the benefits of good employee engagement but it's also important to note what happens when companies don't invest in properly engaging their staff. Some companies understand that engagement contributes to employee satisfaction but also feel that it's not the only contributing factor.
Because of this, they focus on other aspects of business operations instead and employee engagement may fall by the wayside. However, when this happens businesses run the risk of having a disengaged workforce. While employees who are highly engaged are more active and tend to care deeply about the organisation, employees that are disengaged may physically be present but could potentially be elsewhere.
Having too many disengaged employees can also lead to work dysfunction, lack of innovation, unmotivated teams, and poor work culture. To avoid this, HR professionals must give particular attention to employee engagement. If they do, companies will not only save money but will also be better positioned to retain and nurture their top talent.
How Important is Improving Employee Engagement?
According to a survey conducted by Hays among employers in Australia, 83% of respondents believe that employee engagement is important and essential to their organisations.[i]
Given the current financial environment and the lack of appropriate skills in many major economies, employers must increase their existing investments in human capital and engagement is an important aspect of such investment.
After all, a good employee engagement program ensures higher employee satisfaction and a better employee experience. Let's take a closer look at how employee engagement helps boost business performance.
The four most important benefits of a good employee engagement program are:
1. Employee Retention
Engaged employees are 87% less likely to leave.[ii]
In a saturated market with a shortage of suitable candidates, the competition for experienced professionals will increase and companies must focus on keeping their assets. Various independent studies have shown that companies with high employee engagement are less likely to have employees tempted by offers from competitors.
Moreover, an engaged employee who derives meaning and significance from his or her work is more likely to stay with the company in the long run. With high employee engagement, more employees will feel similarly helping to decrease employee turnover.
2. Increased Productivity and Innovation
According to the Workplace Research Foundation, the chance of above-average productivity is 38% more likely with better employee engagement.
Studies show that engaged employees are five times more likely than disengaged employees to say that their organisation is committed to bringing innovative products and services to the marketplace.[iii]
Engaged employees lead to innovative thinking, going the extra mile, and ultimately higher customer satisfaction.
The same research confirms that disengaged staff actually act as a handbrake on an organisation’s efforts to accelerate productivity and innovation.
3. Better Results and Higher Profitability
Companies that invest in employee engagement achieve better results than those without, up to 202%.[iv]
According to a Gallup poll, companies in the upper quartile of good employee engagement, compared to the lower quartile, are 22% more profitable and have 10% higher customer ratings.[v]
A Harvard Business Review also concluded that an engaged workforce not only has happier employees but also has a positive influence on business and financial performance.[vi]
4. Proactive Workforce
A highly engaged workforce is willing to go the extra mile. They are more likely to work outside of normal working hours when necessary, they are more helpful towards customers or colleagues, and overall more willing to go beyond expectations.
In addition, the absenteeism rate for highly engaged staff appears to be lower than for disengaged employees. In the UK for example, employees that are engaged take an average of 2.7 sick days per year; the disengaged take 6.2 days.[vii]
Engaged Employees Are Happier Employees
The proven benefits speak for themselves and companies should invest in employee engagement as one of the key drivers for increased productivity, employee satisfaction, cost savings, and reduced employee turnover.
However, despite the many benefits, independent studies indicate that only 40% of employers believe their staff is engaged.[viii] It's important that companies and their HR teams are taking employee engagement seriously and focused on boosting engagement scores within their workforce.
If you would like to learn more about how you can invest in your human capital and engage your talent via employee engagement software and a native mobile app, visit our website www.qualee.com and download Qualee today!
[i] Hays: “Staff Engagement: Ideas For Action.”
[ii] Corporate Leadership Council: “Driving Performance and Retention Through Employee Engagement.”
[iii] InSync: “Unleash the Productivity and Innovation Within”
[iv] Dale Carnegie: “Training Course for Driving Employee Engagement”
[v] Gallup: “Employee Engagement Drives Growth”
[vi] Harvard Business Review: “The Impact of Employee Engagement on Performance”
[vii] Gallup: “Employee Engagement: How to Build a High Performance Workforce.”
[viii] Edelman: “State of Employee Engagement”