Employees are valuable and this is something that each company or CEO inherently understands. However, their treatment of employees differs drastically from this principle that they preach. Most companies are just talking the talk when it comes to engaging the employees since it makes them look as keeping up with the times. Most companies are thinking of profits first and employees later. The short-sightedness of companies can cost them heavily in the long run. Yet, some ways allow companies to maximize their employee engagement efforts. Listed below are seven such methods:
Increased Staff Retention
According to our study, employees who are highly engaged with the company are 87% less likely to leave than employees with low levels of engagement. The disadvantages of turnover are not just limited to disruption in the flow of work and services; it also implies additional cost in terms of recruitment, training, and onboarding for new employees. Moreover, companies also have to incur the loss of opportunities until the vacated positions are filled again. Taking into account the accumulative expenses, the company can suffer a loss from 16-213 percent of salary, depending on the role of employee.
Happy employees mean productive employees and highly engaged employees are the happiest. Being engaged with work means that employees feel connected to the company. Since they believe that the work they do is impactful, they actively work harder. According to our study, engaged employees outperform disengaged ones by a margin of 21%, which is a significant margin for productivity.
It is also seen that the companies whose employees are more engaged reap higher profits. A company with highly engaged employees witnessed an increase of 19% in operating income over 12 months. While with disengaged employees there is an astounding decrease of 33% in profits. The margin of profitability, thus, stands at a whopping 51%, and it is all influenced by a simple factor of engaging employees.
Improving the Company Reputation
Your staff acts as the spokesperson for your company. It is their words that can make or break the reputation of any company. If the employees are engaged, they are happy, and if they are satisfied with their jobs and employers, they would speak good about the company. This not only builds a good reputation, but also increases the allure of the company to attract potential employees, as well as prospective customers.
Work on Customer Approval
Customer satisfaction should be the urgency of any company. In the unforgettable words of Richard Branson, “Clients do not come first; employees come first. If you take care of the employees, they will take care of your clients.” The secret of successful customer service lay in employees who are better engaged with the company. As compared to disengaged companies, engaged employees guarantees 1.5 times better customer feedback.
Sick Days are Less
Employees who are highly engaged are found to have taken a lesser number of sick days. Compared to disengaged employees, they have 3.5 days less of absence days and usually with valid reasons. Sick days are usually disruptive to the flow of the work taking place within the company and are also responsible for burdening the staff that is present for work. Sick days are found to have cost American businesses, a shocking $228.5 million. Therefore, lesser sick days automatically imply that there are lesser costs to pay and not as many losses to bear.
Decreasing the Level of Stress in Employees
Stress relief is one way that can keep employees happy, and there is a connection between the two. Happy employees and teams are not only more productive, but they are also less stressed generally. Moreover, they are not the indirect cause of stressing out other employees. This cycle is extremely beneficial for creating a healthy work environment.
The Bottom Line
Looking after the well-being of your employees should not be an empty promise for your company and CEO. It should actively be inculcated into the strategy of your company, since it has a lot of benefits, as mentioned above, which are the goals of every company.<< back to Blog