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The Power Behind Engagement

Top Four Benefits of Employee Engagement

People are always complaining about their jobs; whether it’s a boss who drives you up the wall, work that bores you to tears or even the nagging suspicion that you’re being underpaid, each unhappy employee has their own reasons for dreading a Monday morning. But when all this unhappiness and discontent gets added up, it turns out it’s having a profound impact on economies everywhere: we’re in the midst of a global employee engagement crisis, with just 13% of employees worldwide engaged with their jobs.

So what exactly does this mean? An easy way to think about employee engagement is to look at your existing staff. Engaged staff are often your best performing employees – they’re efficient, motivated, understand their role and tackle it to the best of their ability. Naturally, we think all employees will be like that when we hire them – otherwise, why bother?

During job interviews, most candidates are very enthusiastic about the job on offer and if you hire them, it’s normally this enthused and engaged person that you actually want working for you. Yet if you find yourself looking at that same excited candidate a year into the job and seeing that they’re unmotivated, checked out and unhappy, it’s clear that they’ve become disengaged. If that’s the case with many of your employees, you might have a problem brewing.

employee engagement table

It doesn’t matter if your business is a tiny start-up or huge multinational corporation – disengaged staff can run it to the ground. As employee engagement drops off, business owners find that deadlines start getting missed, staff are constantly off sick and employees start leaving the business in droves. Work slows down to a crawl, leaving engaged staff to pick up the slack and heightening their stress levels (possibly leading to them hating their jobs too!)

Luckily, by focusing on employee engagement and happiness, you can revive even the most lifeless of workforces. Read on to find out about the top benefits of employee engagement, along with some tips on how to improve it throughout your business.

1. Cost-Savings

Disengaged staff are slowly draining the life out of your business. In the UK, employee disengagement is costing businesses around £340 billion every single year in lost productivity, while in the USA Gallup estimates this figure rises as high as $550 billion.

It’s easy to see how – if you’re paying someone to do a job and they’ve only put in half the effort necessary, they’ll still get paid even if you don’t get the results you need. As for very disengaged employees (often easily identified by their miserable and disruptive attitudes), you may as well be giving money away. Employee disengagement can easily decimate the return on investment on salaries.

On the other hand, engaged employees will improve your profitability and drive revenue. In fact, workforce opinion surveys show that highly engaged employees can boost business performance by 30%. This is because engaged employees are emotionally committed to their company, its values and its goals. They want the business to do well and will do their best to help it succeed. The hard numbers prove this too – companies with engaged employees outperform those without by 202%.

Luckily, there are ways you can help to foster this sort of commitment. For instance, people who are bored to death at their jobs are unlikely to care about it much, whereas 78% of employees who say their companies encourage creativity and innovation are committed to their employer. It’s easy for businesses to get into a “this is how we’ve always done it” rut and resist change, but data like this shows that this attitude is detrimental to employee engagement. Instead, actively encourage employees to innovate and explore new ways to do things. They’ll enjoy their jobs more, be more committed and help to power your business forwards.

2. Lower Turnover

Did you know that whenever a staff member leaves, it can cost 33% of their salary to replace them? Hiring recruiters is expensive, but even if you look for someone independently you’re going to need to spend valuable time and money on advertising the position, and screening and interviewing candidates. And that’s not the end of the problem – it’s unlikely a new person will be as comfortable in the role as their predecessor – they’ll require training and time to acclimatize to their new job. In fact, a new employee can take up to 2 full years to reach the same level of productivity as an existing staff member. In the vast majority of circumstances, that’s going to mean some degree of lost productivity.

It’s clearly in a business’ best interests to retain as many of their staff as possible, but with widespread disengagement becoming more and more of a problem, employees are more likely to leave their jobs than ever before. A job for life has become a thing of the past. Estimates vary, but research suggests that as many as 51% of employees were looking to leave their jobs in 2017. And for those who are worried about employees being poached by recruiters and competitors, you might have reason to be paranoid – 81% of employees would consider leaving their current role for the right offer.

On the other hand, a marker of engaged staff is company loyalty. Highly engaged staff are 87% less likely to leave an organisation than less engaged staff. So if you want to reduce staff turnover, it’s worthwhile to take a look at exactly what’s ruining engagement and driving people to leave:

With this in mind, who you hire as a manager and the way you train them is absolutely vital for employee engagement. Audit your existing managers to ensure that they’re fit to lead, and be selective when hiring new ones. An effective manager prioritizes supporting their staff, leaving employees feeling far less disenchanted with their jobs. Furthermore, by implementing company-wide recognition programs, staff will feel more appreciated and motivated to work (rather than just motivated to find a new job).

3. More Productive Employees

As Albert Einstein once said, “The best creative work is never done when one is unhappy.” This remains true in the modern workplace, with overall productivity increasing by 20-25% when employees are engaged.

A big factor in reducing productivity and engagement is work overload and excessive stress. Some managers think that by setting more work and piling the pressure on, they’ll get better results. If you’ve ever felt overwhelmed at work, you probably know that the opposite is true:

It’s clear that stress is not an effective motivator. Instead, take a positive and constructive approach to each employee’s work to ensure that workloads are manageable. Implement effective and personalized feedback and communication structures that allow employees to raise any problems they’re having in a non-judgmental setting.

4. Happier Customers

Happy employees create happy and satisfied customers, and the numbers prove it: companies with a formalized employee engagement program enjoy 233% greater customer loyalty. It makes sense, really – if you’re unhappy at work, the last thing you want to do is have a chirpy, helpful conversation with a customer.

It’s worth noting that part of the reason for this is that engaged employees are often well-trained employees. Far too often, companies neglect thorough training programs in favor of ad-hoc and informal “on-the-job” style training.  This sort of training often delivers inconsistent results, with employees feeling they lack the skills and knowledge to perform their role properly: 28% of employees feel they’d be more productive with better training.

Meanwhile, employees who have received comprehensive training deliver superior customer service and achieve better results for their company. For salespeople, formal and dynamic coaching can improve their win rates by 28%. Furthermore, a lack of training frustrates employees and gives the impression there’s little room for development in their current role. Indeed, ongoing employee development programs beyond initial training periods are absolutely crucial; in a survey by CV Library, 31% of respondents cited a lack of development opportunities as the top reason for wanting to quit their job. If you want engaged employees, you need to invest in their future. After all, you stand to benefit too!

The Bottom Line: Employee Engagement is Worth the Investment

At the end of the day, your employees are more valuable and important to your business than any other asset. People spend a third of their lives at work, and it’s in your best interests to make sure they’re not miserable that entire time.

Management shouldn’t be about forcing as much work as possible out of employees at any cost. You want employees that are happy at work & want their company to succeed, rather than someone who’s looking for a quick exit because they’re unhappy.  By prioritizing employee engagement, you can enjoy all the above benefits: greater profits, lower turnover, more productive employees & happier customers…It really is a win-win situation!

To learn more about the importance of employee engagement, take a look at Achievers white paper The True Cost of Employee Disengagement.

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About the Author
Becca Armstrong Becca Armstrong is a content writer for MadMax Adventures, a purpose build outdoor activity center near Edinburgh, Scotland. They run corporate away-days for businesses that want to improve organisational performance by developing more cohesive teams, rewarding high performance or building relationships with valued customers.

 

 

Increase Employee Retention

Who Owns Retention? The Real Employee Turnover Problem

What’s the biggest problem when it comes to employee turnover? No one owns retention!

At many companies, when turnover rises executives point to HR to fix it – whose plate is already overflowing with terminations, payroll, benefits management, and back-fill recruiting. HR then blames bad managers for running off good people, and the managers push back complaining that executives do not give them enough time or training to manage their people properly. They all have a point, but this blame game is costing those organizations tons of money!

Stop Focusing on the Symptoms…Find & Fix the Cause!

After much finger-pointing, companies often come to the conclusion, “We have so much turnover, we need to hire another recruiter.” Are they kidding? That’s like trying to fix a water main break with duct tape. You may temporarily slow down the deluge, but not for long! If turnover is the problem, then you don’t need to hire someone who’s good at recruiting – they’ll just struggle to fill all the positions that keep unexpectedly being vacated. You need a dedicated retention specialist who will diagnose the core issues, work to resolve them, and maintain a stable workforce moving forward.

So why is the default next step to add another recruiter? Because everyone knows what a recruiter does and which line item that goes under on the P&L.

Now before you get upset, I assure you I’m not anti-recruiter! Recruiters are great, when you need a recruiter! If turnover is a problem, it is very possible that reworking your recruiting processes might be needed as well. Perhaps you really are hiring the wrong people and/or it is time to revamp the interview process, selection criteria, and applicant communication plan. You may even need to improve your employer brand in your community if you don’t have a positive reputation as an employer in your area. These are all things a good recruiter could handle, but these changes are rarely enough if retention is rising.

So if you can get approval for a new position, how about pitching the idea of a retention specialist instead? It’s a tougher sell to get approval from the higher-ups – they’ll wonder what a retention specialist is, complain the role sounds fluffy and become convinced it’s going to add overhead costs that seem unnecessary – but you must fight for it! It’s time to get more resources to fix the real issue.

What Is a Retention Specialist Exactly?

More organizations are creating this type of position and the responsibilities certainly vary from company to company, but their primary roles are to determine why people are leaving, and to build relationships and initiatives that extend employee tenure. This often includes, but is not limited to:

  • conducting and analyzing employee surveys and stay interviews
  • building employee networks/committees
  • serving as an employee ambassador who can answer staff questions or listen to feedback
  • ensuring the onboarding process is welcoming, thorough and incorporates the company culture
  • determining gaps where additional supervisor/management training is needed
  • coordinating (and possibly conducting) supervisor/management training and development programs
  • identifying operational/system changes that help adjust to a shorter-term workforce
  • analyzing compensation, advancement opportunities and scheduling for models that better align with today’s workforce’s needs
  • implementing recognition and appreciation programs across organization
  • ascertaining ways the organization and managers can be more transparent with employees
  • developing effective staff meeting schedules, agendas, and tools for those leading meetings
  • crafting organizational messages that instill the company’s mission and core values

Sounds like a full-time job to me! Who on your current staff has time to do all these things that are needed to reduce unnecessary employee turnover?

One Person Won’t Resolve the Issue – Retention is Everyone’s Job

While having a dedicated staffer to focus on diagnosing and resolving turnover issues is essential, leaders at all levels must take turnover seriously. Just like customer service, retention should be part of everyone’s job and everyone’s training. Keep in mind, workers today will leave their jobs if they don’t like their immediate supervisor, the leadership team or their coworkers, so encouraging your entire staff to attract and retain talent is critical.

Is your organization incentivizing peer referrals? Is your company rewarding managers for improved retention within their departments? Or are they setting bonus plans according to the concept of “do more with less,” which is driving away the talent you can’t afford to lose.

Become a Champion for Retention

So where do HR professionals start? Here a few ways to attack the turnover crisis:

  1. Create recognition and/or incentive programs for employees who reach certain milestones (after one year, not five!).
  2. Demand more management training for everyone who has direct reports.
  3. Make a case for hiring (or becoming) a retention specialist.

Same Approach = Same Results

If the trajectory of your employee turnover is headed in a positive direction, keep doing what you’re doing. But if your retention is getting worse every year, it is time to try a new approach for attracting and retaining today’s new workforce!

If you want to learn more about how to effectively retain employees, join me at Achievers Customer Experience (ACE) 2017 September 12-13 where I will be speaking on Leading the New Workforce: The Evolution of Employee Expectations. Check out details of my speaking session and the event here.

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About the Author
Cara Silletto
Workforce thought leader Cara Silletto, MBA, is the President & Chief Retention Officer at Crescendo Strategies, a firm committed to reducing unnecessary employee turnover by bridging generational gaps and making leaders more effective in their roles. Cara is a highly-sought-after national speaker and trainer, having conducted more than 100 engagements in 2016 alone. She has spoken to more than 10,000 leaders across the country at companies including UPS, Toyota, Humana’s Learning Consortium, and Cintas. Workforce Magazine named her a “Game Changer,” Recruiter.com included her in their 2016 “Top 10 Company Culture Experts to Watch” list, and she is a co-author of the book, What’s Next in HR. Follow Cara on Twitter @CrescendoHR.