Why Employee Engagement Definitely Matters

There are no two ways about it.
 
𝙄𝙣 𝙤𝙧𝙙𝙚𝙧 𝙩𝙤 𝙗𝙚 𝙥𝙧𝙤𝙛𝙞𝙩𝙖𝙗𝙡𝙚, 𝙖𝙣 𝙤𝙧𝙜𝙖𝙣𝙞𝙯𝙖𝙩𝙞𝙤𝙣 𝙢𝙪𝙨𝙩 𝙚𝙣𝙜𝙖𝙜𝙚 𝙞𝙩𝙨 𝙚𝙢𝙥𝙡𝙤𝙮𝙚𝙚𝙨.
 
This, in turn, results in a great company culture.
 
Which has always been important, but is nowadays critical, with so many employees leaving their employers, in search of something better.
 
And they are not hesitating to do so.
 
If an organization is experiencing issues with employee engagement, some or all of the following will be present:
 
✅ High turnover
✅ Inability to attract great candidates
✅ Low productivity
✅ Lack of creativity/innovation
✅ Low motivation
✅ Absenteeism problems
✅ Quality issues
✅ Low customer satisfaction
✅ High rates of safety incidents
✅ Poor Glassdoor reviews
 
As a result, companies not only incur significant costs, but these issues also stop leaders from focusing on other important aspects of the business, itself a problem.
 
Turnover alone has been estimated by SHRM to cost between 1.5-to-2 times the departing employee’s annual salary.
 
However, the costs extend way beyond turnover:
 

• Low employee engagement costs companies $450-$500 Billion each year. (Gallup)

 

• Toxic workplace cultures have driven 20% of U.S. employees out of their jobs in the past five years at turnover cost greater than $223 Billion. (SHRM)

 

• 69% of candidates will reject a job offer if they find out that a company’s workers are generally unhappy. (Hibob)

 
On the other hand, there is significant ROI in engaging employees:
 

• Companies with highly engaged workforces are 22% More Profitable. (Gallup)

 

• Engaged employees have 18% higher productivity and 60% higher quality than disengaged employees. (Insync Surveys)

 

• 79% of companies with engaged employees had a significantly better customer experience than companies who didn't. (Temkin Group)

 

• Companies that ranked in the top quarter of employee engagement had 70% fewer safety incidents than companies in the bottom quarter. (Gallup)

 
The good news is that it is possible to change things, as long as leaders are committed to doing business differently from now on.
 
𝙎𝙩𝙖𝙧𝙩𝙞𝙣𝙜 𝙬𝙞𝙩𝙝 𝙨𝙝𝙤𝙬𝙞𝙣𝙜 𝙚𝙢𝙥𝙡𝙤𝙮𝙚𝙚𝙨 𝙩𝙝𝙚𝙮 𝙜𝙚𝙣𝙪𝙞𝙣𝙚𝙡𝙮 𝙘𝙖𝙧𝙚, 𝙖𝙣𝙙 𝙩𝙝𝙚 𝙞𝙢𝙥𝙡𝙚𝙢𝙚𝙣𝙩𝙖𝙩𝙞𝙤𝙣 𝙤𝙛 𝙘𝙤𝙧𝙚, 𝙛𝙪𝙣𝙙𝙖𝙢𝙚𝙣𝙩𝙖𝙡 𝙥𝙧𝙖𝙘𝙩𝙞𝙘𝙚𝙨.
 
In fact, according to Gallup, disengaged employees offer perhaps the greatest untapped potential for businesses to improve their profitability and performance.
 
It has a very real impact on business success, and it should be considered a part of a carefully planned business strategy.
 
Not only resulting in a more profitable business, but also one that any leader can be proud to lead.