Why is Employee Engagement Important?
Benefits of an Engaged Workforce
Tuesday, June 13, 2023
Our mission is to help other organizations succeed. And, we believe the best way to experience success is by prioritizing the most important resource your company has – your employees.
Improving employee engagement has a substantial impact on your organization. It can lead to increased productivity, improved workplace safety, reduced absenteeism, better employee retention rates, and higher customer satisfaction. Engaged employees excel at adapting to change and driving innovation, both of which are vital for ensuring the long-term profitability and sustainability of your business. Let's dig deeper.
What is the benefit of employee engagement?
Higher Retention.
Organizations that make employee engagement a strategic goal are better at retaining top talent. According to Work Institute’s 2022 Retention Report, the cost of turnover per employee is approximately 33% of their base pay.Improved innovation and productivity.
Engaged employees strive to do better, looking for feedback from their coworkers and managers. They are collaborative, which improves employee relations. They expect others to be held accountable for their work. They find meaning with their work. And this creates a better product, better customer service, a better workplace.Improved employee commitment.
When your workers are connected and aligned to the organization’s goals, they are more likely to put discretionary effort in high-impact tasks to improve company processes and culture.Reduced cost of human error.
People … make mistakes. It’s inevitable, and, we’d argue, it’s a big part of a learning organization. But when we talk about human error, we’re talking about those mistakes that, ideally, could've been avoided. 80% – 90% of human error is responsible for serious workplace accidents. Over 80% of workplace security breaches are caused by human error. Many mistakes are completely avoidable. Human error is directly related to training, communication, fatigue, stress, outdated software, and equipment. Mistakes are part of being human, but if the organization is working to prevent them, then your employees are less likely to make them.Improved team performance and collaboration.
Working toward a common vision and aligning each person’s tasks with the organization objectives are tenets of success. An atmosphere of collaboration in the workplace fosters open communication and trust, ultimately resulting in improved problem-solving and decision-making capabilities.Increased customer satisfaction.
Engaged employees’ impact on the final product is tangible. Their connection to the workplace shows in how they work with and treat clients and customers. This domino effect leads to customer retention.Better health.
The Surgeon General claims that toxic workplaces are a health hazard. Employee wellness, including physical, mental, and financial health, leads to fewer sick days, fewer doctor’s visits, and fewer dips in productivity. Healthy employees are less likely to burnout. According to Circadian, absenteeism costs organizations an average of $3,600 per employee per year (hourly) and $2,600 per employee per year (salary).Developing a reputation for being a good place to work.
With social media’s whisper network turning into a megaphone, organizations that prioritize their employees’ wellbeing, providing them with a great, safe place to work, build a better reputation. This attracts top talent as well as customers. Good brings good.Higher Earnings Per Share.
An engaged workforce is a big differentiator in EPS. Though there isn’t hard data to link engagement and profitability, a Forbes study linked a fall in engagement in one calendar year to a fall in profitability in the following calendar year.It’s the right thing to do.
Organizations are built by people. And people deserve good treatment, and a safe place to work, free of harassment. They should have access to education and development opportunities. They should have meaningful benefits, healthcare, and fair pay. Their work-life boundaries should be respected. Lead with humanity and kindness.Employees are the engine of each and every organization, no matter the size. Just as you update software, invest in infrastructure, or design a new logo for strategic reasons, so, too, must you be strategic about creating and improving your workers' experiences.
These are key benefits of employee engagement. Understanding why it's important is just the first step. Today we discussed the whys, next post, we’ll discuss how to measure and increase engagement in your organization.
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