Over the last several years employee engagement has been a big buzz word in the industry. It seems to be everywhere—in webinars, at conferences, on LinkedIn, and you can’t seem to go a day without hearing about it somewhere. Maybe you even hear about employee engagement in meetings you’re having at work, and you’re wondering exactly how you can talk about it to stakeholders in such a way as to provide proof that it influences the bottom line in a big way.
Don’t worry, we’re here to help you do just that. We’ve done the research to help you make the case for employee engagement in your company, and we’ve put it in a handy downloadable at the end of this blog post. In the meantime, let us whet your whistle with a little preview:
Engagement Increases Productivity
Companies that don’t invest in employee engagement are losing much of the potential returns each year in sunk costs and lost opportunities—all because employees are actively checked out from work.
A strong engagement strategy boosts employee productivity, which in turn can generate more revenue per employee. We get that employees aren’t just a number on a spreadsheet, and we don’t want to convey the idea that employees are merely drones working to increase your company’s revenue. Not at all. But let’s be real: employees, in general, work to earn money so they can live a life. Companies exist because they provide a product or a service, and they in turn get money for that, then pay their employees to do the work that generates the product or service. It’s a big happy symbiotic relationship, one that depends on productivity both of the company and the employee. And if the employee is more productive, the company will be, too.
Increasing the engagement of your employees boosts productivity and will generate as much as $28,000 in increased revenue per employee. Imagine how much that could impact your company if you had even 100 employees! Get more info on the how engagement increases productivity in our white paper below.
Engagement Influences Turnover
The average company experiences 15% turnover in their employee base every year. When an employee leaves, it can cost the company approximately one-third of that worker’s annual salary in recruiter fees, temporary workers, and lost productivity to replace just one employee.
With a good engagement strategy, organizations can reduce the turnover rate by nearly 40%. That’s a big deal and can have a massive impact on cost savings. Think about it this way: if you didn’t have employees leaving as often, you wouldn’t have to pay to get another employee up and running, right? That’s why effective engagement influences turnover—because engaged employees are generally happier employees, and won’t want to leave the organization. Read more about the specifics (like how much your company could save) in our white paper.
Engagement Impacts Absenteeism
Absenteeism is “the practice of staying away from work or school without good reason—or reason at all.” Absenteeism means not going to work without good reason, and often without providing reason at all, because you just don’t feel like going. In school they called that “sluffing,” and you’d usually get docked points for it.
Work is no different. When employees are absent without cause, it can really do a number on overall productivity. However, when employees are engaged, it reduces absenteeism by nearly 41%, which can play a big part in keeping things hopping at work. In some cases, that can save companies nearly a quarter million each year!
The Bottom Line
Companies that choose to invest in employee engagement improvement efforts reap the rewards on everything from an improved culture to increased revenue—and that’s just the beginning. The great thing about engagement is that it can start small, even with a simple, heartfelt appreciation of effort. When something so easy has such a huge impact, the question then becomes: can you afford NOT to invest in something that will immediately increase your bottom line? We didn’t think so.