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Why High Employee Engagement Leads to Bigger Profits

Most managers and business owners understand that engaged employees are happy and productive employees. They deliver higher levels of customer service and make the business more money.

These findings have been supported by decades of research, which have proven the link between employee engagement, happier customers and an increase in profits.

Research by Right Management across Australia and New Zealand workplaces found that higher levels of employee engagement resulted in:

  • 44% higher retention
  • 33% more profit
  • 50% more productivity
  • 56% higher customer loyalty

Unfortunately the research also showed that 47% of the surveyed employees were disconnected, which means they had low levels of job and organisational engagement.

In so many workplaces, there are no formal measures in place to actively measure employee engagement.  Gaining feedback from your employees on their levels of engagement is the first step to improve employee engagement.

For some small and medium sized businesses, it may sound too complex or too time consuming to do so. But failing to address and manage engagement can be the difference between a business that thrives, and one that dies. This is especially true in tougher economic times where people will take their business elsewhere

Addressing and managing the engagement of your staff is equally as important as developing good leadership and customer loyalty – but sadly is so often overlooked.

Why Does Employee Engagement Matter?

Employee engagement is one of the most important business levers and a major indicator of the overall ‘health of the business’.

It’s not always an easy thing to address, and it will need a dedicated approach from everyone in the organisation.  The rewards for understanding, measuring and striving to improve employee engagement will result in benefits that go far beyond an increase in profits.

Depending on the practices, behaviours and culture of your business will prioritise which of these steps are the most important to address first, however all are recommend to be assessed to boost your business’ overall employee engagement.

Steps To Measure, Monitor And Boost Employee Engagement

  • Understand staff perceptions about their workplace and managers by surveying employees anonymously.
  • Formal training, mentoring, coaching of managers to help drive the skills, behaviour and strategy that is desired throughout the business. The best engagement scores will come, or will improve when managers have acts to boost engagement as part of their KPIs
  • Refining or implementing a recognition and reward program to identify and encourage excellent performance and behaviour.
  • Help employees understand the purpose behind what they do and why their job matters in the ‘bigger picture’ of helping the business to achieve its objectives. Aside from making money – what are the reasons your company is in business?
  • Introduce an open door policy when it comes to communicating issues and allow concerns and ideas to be heard – ASK open questions and LISTEN to the answers
  • What are the values of your organisation?  To bring your Values alive you need to be clear about the desired Behaviours in your organisation, and be committed to implementing them as the basis of HOW employees do their job.

Need Further Advice? Talk To Harrison Human Resources

With our HR Consulting service, we can provide practical advice and guidance on how to boost employee engagement in your workplace and consequently increase your profits.

Simply click here to request an obligation-free 15 minute phone consult to get some initial advice on your HR needs.

 

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