Employee engagement is about making employees commit to the company. Consequently, it contributes to the success of a business. We'll dive further into why a business needs employee engagement to succeed.
Does employee engagement improve business performance?
A large part of business performance metrics is the profits that bring the much-needed cash flow. For intangible assets like employee engagement, it can be tricky to attribute its ROI.
However, employees are a valuable resource of a business. Employees are the ones producing the product, service, or facing the customers. Their actions and beliefs about the company can affect the business performance and its growth. Thus, you will need to keep them highly engaged to contribute to your business.
Employee engagement is more than just a higher salary or the financial benefits a company provides for its employees. It's a holistic culture involving some of these factors:
- Commitment to the organization
- Sufficient resources that an employee needs to do their job
- Interchange of ideas between employees and management
- Professional treatment within the workplace
Once employees feel that a business offers more than the monetary value, it drives them to do better work for the company. As a result of their output, the business grows its operations. Here are some of the business results observed by the construction equipment firm Caterpillar, as stated by SHRM network:
- $8.8 million annual savings from reduced absences and attrition
- $2 million increase in profit
- 34% increase in customers highly satisfied with the service
Aside from increasing profits or gaining savings from productive employees, incorporating employee engagement into a company's culture drives other significant contributions. Let's get to know each of them.
How does employee engagement drive business success?
Employee engagement is not only about building a positive culture among employees. It can likewise provide growth opportunities for a business through the following:
Builds trust in the organization
Trusting an organization is a baseline for the success of the business. It is the employee's level of commitment or connection with a company that determines its success. And with highly engaged employees, you'll be able to establish trust in the employee-employer relationship. They'll acknowledge and share the company's vision. When employees recognize the value of the business, they'll be more confident and take pride in their work.
Increased retention
Engaged employees are more loyal to a company. Instead of complaining about what they do not like, the staff finds ways to overcome the challenges and recommend what to do about them. An employee engagement survey by Gallup reveals that organizations with high turnovers achieve 24% less turnover while those with lower turnovers get up to 59% fewer employees leaving. Engaged employees are more open to changes in an organization, convincing them to stay longer.
Enhanced collaboration
From the internal staff to third-party providers and clients, collaboration is key to business success. When employees have a culture of engagement, they're more likely to cooperate with their team members and other parties involved in the business. Having smooth cooperation between employees reduces the number of misunderstandings. They'll be more cooperative with the needs of their workmates, suppliers, and business partners alike.
Creates team dynamics
Within a team, employees will have different personalities and work attitudes. Having employee engagement in an organization reduces the friction between team members. Instead of blaming, employees will act responsibly towards their colleagues. They will have a dynamic team effort in solving problems they face in the workplace, which leads to a better business environment.
More productivity
The employee can focus on their performance and provide a quality output when they're engaged actively. They recognize the value that they bring to the organization, which makes them productive employees. 84% of highly engaged employees admit to going beyond their work scope. Without being asked, they'll go the extra mile and initiate efforts to boost their productivity in their work. Going beyond the employee's duty is a sign of being responsible, which a business needs to pursue growth.
Better customer service
Involved and passionate employees translate to a better way of handling customers. The staff will know how to treat customers in line with the company's values. In a report by Harvard Business Review, 80% of business leaders say that a high level of customer service is one of the top success contributors in their organization. And to provide better customer service, you will need to have highly engaged employees. They're the ones keen on assisting and even go beyond their duty to serve your customers.
Improves sales and profitability
Positive workplace culture can increase revenues by up to 682%, brought in by highly engaged employees. Additionally, an efficient workplace improves the profitability of a business. The employees will work hand-in-hand to maximize every return and reduce costs. As more employees provide better service and quality output, more customers will also choose the business. Employee engagement within an organization will help make your business a better choice than your competitors.
Work-life balance
Having a balanced environment keeps employees stable and healthy. Glassdoor found out in a survey that two-thirds of American workers would perform better if they have more sleep. They'll come to work level-headed and dismiss toxicity in the workplace. With less stress, employees can pursue their other passion outside of work. Essentially, the work-life balance makes them healthier, productive employees - a valuable asset for the business.
How to create an engaged workplace
There are various actions you can take to cultivate employee engagement in the workplace. These activities are doable within any organization to help improve and bring a positive culture to a business.
Gain employee feedback
Employees are the ones on the frontline doing the job and facing the customers. Thus, it's vital to know their thoughts as employees provide valuable insights about the business and the customers they serve. When you ask for feedback from employees, you ignite them to engage actively with the organization's affairs. Instead of passive involvement, employees will feel valuable by hearing them out.
Have effective communication
Clear, transparent, and concise communication within the organization creates a culture of openness and engagement with one another. Employees will understand and follow instructions accordingly. If they have concerns, it will be easier for an employee to address them to the management and vice versa. They'll also be less resistant to receiving constructive criticism to improve their work. In return, they'll become better employees and contribute to what the business wants to achieve.
Conduct team-building activities
Conducting regular team-building activities revitalizes the team spirit between employees and the management. It creates a bond and increases engagement when employees see the other side of each one another from their usual professional roles. Additionally, team-building activities promote health and wellness among employees, which is key to increasing their productivity.
Provide professional development opportunities
Employees who want to advance their careers within the organization will benefit from professional development opportunities. Additional skills training makes them feel valued, a significant part of the success of a business. By investing in its workforce, a company can increase the level of engagement among employees. As a result, they'll be more passionate about their jobs.
As with any business, employees have a significant contribution. That's why it's crucial to provide a culture where they're valued. More than the monetary benefits that a company can offer, it's about building an ideal environment for employees. Highly engaged employees perform better, and with that, they're able to contribute more to the success of a business.
