How Employee Engagement Can Keep Your Business Alive and Kicking

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.

Benefits of Employee Engagement

1.      Boosts Profitability

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.

2.      Magnifies 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.

3.      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.

4.      Reduces Turnover

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.

5.      Saves Costs

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. 

6.      Lowers Absenteeism

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 highlight 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.

7.      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.