Employee Engagement Can Lead to Increased Profitability
It’s well established that engaged employees are happier and more productive workers. This translates into a business where workers are present and attuned to the necessary processes and systems that keep a workplace running smoothly. From a financial perspective, employee engagement has the potential to translate into a 21% increase in greater profitability.
Translating Engagement Best Practices
- Communicate the alignment of employee performance and strategies of the business
- Create opportunities for challenge and collaboration
- Delegate tasks when necessary
- Offer on-the-job experiences to boost employee skill sets in a way that benefits the business
- Nurture and grow managers who invest in their team
- Recruit from within
- Grow through employee referrals
Getting Positive in the Workplace
Keeping employees engaged at work begins with demonstrating how individual skill sets and actions contribute to the company’s goals and ultimately the bottom line. Creating positive engagement is about making connections employee-to-employee and employee-to-manager. Engagement done right can also translate into higher earnings per share (EPS) for the business. Gallup found that organizations with employee best practices and workplace engagement are more likely to achieve greater EPS than their competitors.
Winners of Gallup’s Great Workplace Award had 115 percent growth as compared to competitor’s 27 percent growth. The rate of growth was also 4.3 times greater than that of a company’s competitors, according to an article from Paycor. Over time, those award-winning companies created on average more engaged employees.
Other Engagement Benefits
Less Employee Turnover – The loss of a valuable employee translates into the absence of knowledge and skills. A revolving door also negatively impacts employees who are left to take up the slack in another employee’s absence. Not to mention that direct expenses created by turnover can vary from 46 percent of annual pay for employees on the front line to 176 percent for IT staff and 241 percent for middle managers, according to the Corporate Leadership Council.
Reduced Absences – Engaged employees are also more likely to consistently report to work and do their job. Over the span of a year, absenteeism can add up to a loss of $2,650 for salaried workers and $3,600 for hourly employees, according to a Workforce Institute whitepaper.
Before embarking on improving employee morale, it’s important to understand the problems the company is facing and determine if the right employees are in the right job. Another assessment is to see if the salary and benefits suit the workforce and if employees are experiencing any issues with work/life balance. This assessment can be beneficial for the employer and can help an employee determine if they are in the right role for their talents and skills. Knowing these nuances helps employees understand how they can contribute toward the company’s greater goals.
Get started by:
- Communicating internally
- Providing incentives
- Assessing the workplace environment
- Letting bad managers go
- Offering referral bonuses
- Prioritizing employee morale
This article is brought to you by Staffing Kansas City, a Kansas City employment agency that provides Personnel Services with a Personal Touch.