The Importance of an Engaged Workforce
Employee engagement is arguably the most overlooked factor when it comes to defining a company’s success. According to Aon Hewitt, every 1% increase in engagement delivers a 0.6% increase in sales revenue. However, Gallup’s Workplace Report claims 51% of workers are looking to leave their current jobs – this suggests disengagement is more common than engagement. So what are the specific benefits of an engaged workforce and why should keeping employees satisfied be a major priority for every employer?
Growth and progression
Ensuring individuals are motivated to progress and develop their careers internally can be a key factor of high engagement. Showing there is potential for internal growth is an advantageous way to encourage employees to strive for success and helps the company retain its valuable workers. 88% of individuals agreed that it is important for employers to reward them for their hard work which is a vital part of feeling appreciated in the workplace. Research carried out by Qualtrics also shows 90% of millennials would choose to stay in a job for the next 10 years if they knew there is a chance of upward career mobility. Rewarding exceptional employee performance with a promotion is a great way to show others that hard work pays off and development opportunities are available.
Employees who are highly engaged and driven are committed to helping the company succeed and are willing to go to the extra mile to achieve great results. The Workplace Research Foundation found that happy employees are 38% more likely to have above-average productivity – such individuals do whatever it takes to increase efficiency which in turn means higher levels of profitability. When an employee feels like they are part of something important and their contribution makes an impact on the business results, they form a mental and emotional attachment that becomes mutually beneficial for both parties.
High staff retention/ Low staff turnover
It goes without saying, every company aims to keep their staff turnover low and retention levels high. According to MetLife, 83% of employers say retaining personnel is their key objective as replacing an employee is a costly and time-consuming process which can disrupt the company’s overall performance. This year’s Employee Engagement Series conducted by Kronos also shows that 95% of HR Managers believe employee burnout is responsible for up to half of their annual workforce turnover, which is why it’s imperative for employers to take the necessary action to keep employees happy and engaged at all times.
Reduced spells of absenteeism
Individuals who enjoy their jobs are more inclined to attend work and avoid being absent unless necessary, and once there, will be more productive than those who are disengaged. Those who are uninterested in their job often feel a lack of responsibility in the workplace, whereas engaged employees tend to be conscious of letting their peers down in the event of their absence. The cost of employee absence is a pricey occurrence which is why companies are keen to keep the level of absenteeism as low as possible, the CIPD 2016 Absence Management Survey found this amounts to approximately £522 per employee.
Boosting and retaining employee engagement should be a top priority for all employers and levels of engagement should be measured regularly to ensure the smooth-running of the organisation. We live in a hyper-connected world where quality employees have many opportunities to easily find a new job, it is therefore important that employers recognise the importance and benefits of keeping all employees happy, engaged and productive.
If you would like to find out about our range of employee engagement initiatives and services, contact Charlotte Todd-Smith on 07734 972679 or email firstname.lastname@example.org to see how our HR Solution services can help you improve employee engagement.