How Employee Engagement Increases Productivity

We’re back to the stats. In our previous blog post, we shared a Harvard Business Review study that says, “Organizations with higher levels of engagement report a 22% increase in productivity.” That’s pretty bold. Why?

Simply put, engaged employees are more invested in their work.

How, though, do these two ideas connect?

The Link Between Employee Engagement and Productivity:

Employee engagement significantly boosts productivity by creating a space where employees are motivated, committed, and aligned with organizational goals.

Here's how engagement increases productivity:

1. Improved Performance and Profitability

Engaged employees are more productive and customer-focused. Gallup's research indicates that organizations with high employee engagement experience higher earnings per share (EPS) growth rates compared to those with lower engagement levels.

2. Reduced Absenteeism

Engaged employees are motivated and committed, finding a sense of purpose in their work. They are more likely to show up consistently.

Engaged employees are often less stressed than their disengaged counterparts. Stress is one of the primary causes of workplace sickness and absenteeism.

3. Reduced Turnover:

How much does turnover cost your organization? Consider these factors: hiring costs, training costs, temporary employees and overtime, and time to full productivity.

Gallup reports the estimated cost of replacing employees is 1.5 to 2 times their annual salary. Yes. That should catch your attention.

Engaged employees feel passionate, committed, and involved with their work. They often have solid relationships with their peers and managers, which reduces turnover.

4. Positive Impact on Customer Satisfaction

There is a clear correlation between employee engagement and customer satisfaction. Engaged employees have better customer interactions, improved problem-solving efficiency, create trust with customers, and provide customers with a sense of familiarity and continuity.

By making employee engagement a strategic priority for your organization, you can create a more productive and efficient workforce, leading to better overall performance and a competitive advantage in the market.

Employee engagement isn’t only the right thing to do, it’s the smart business thing to do.

How Employee Engagement Increases Productivity

The Link Between Employee Engagement and Productivity:

1. Improved Performance and Profitability

2. Reduced Absenteeism

3. Reduced Turnover:

4. Positive Impact on Customer Satisfaction

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