The Power Behind Engagement

Top 4 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 and 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 and 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.





why employees quit

Understanding Why Employees Quit

Knowing what makes employees quit — and then heading off those problems — is the goal of every HR department. While you’ll never be able to avoid individual events that disrupt the lives of workers and their families, it’s helpful to have an overview of preventable causes for employee churn. People leave jobs for several classic reasons, according to Harvard Business Review, all of which are somewhat predictable. The key is to understand each reason well enough to defuse it with a proactive intervention. Here are the main reasons workers cite for leaving their positions, and how you can slow this expensive leakage and build your employee retention:

They Don’t Get Along with Their Boss

This reason is the elephant in the room, and we can’t discuss employee retention without starting here. Gallup CEO Jim Clifton points out the primacy of management know-how: “When you name the wrong person manager, nothing fixes that bad decision. Not compensation, not benefits — nothing.”

When an exit interview or other feedback shows that you have a problem manager, you need to rectify the situation as soon as possible. If the person seems open to developing new skills, it’s often worthwhile to provide them with intensive management training. However, if real change doesn’t seem possible, you’ll ultimately save money by replacing them with someone who simply has better management skills.

Their Lives Take a New Direction

This may be unexpected, but research cited in Harvard Business Review notes that job-hunting rates jump by 12 percent right before a worker’s birthday. Researchers speculate that a person is often stimulated by the arrival of their birthday or another milestone to take stock of their life and see if their career is going in the direction they want. While you have limited input into this private self-examination, it’s helpful to incorporate a personal check-in along with celebrating your employees’ birthdays. Are they happy with their job? What are their current thoughts and ambitions?

Their Careers Aren’t Moving Forward

In today’s networked marketplace, your most talented employees are going to keep an eye on opportunities in their field, and Gallup’s 2017 report on the State of the American Workforce finds that 51 percent of them are ready to jump ship at any given moment by actively looking for a new job or watching for openings. Harvard Business Review notes that Credit Suisse responded to this tendency by having their internal recruiters cold-call employees to let them know about new openings arising within the company that they might be qualified to fill. This program ended up moving 300 employees into more challenging positions and saved the company $75 to $100 million in employee turnover costs.

They Don’t Feel Challenged

Human resources expert Susan Heathfield warns employers that they have to make sure their workers are actually using their skills and abilities, and Gallup’s report found that 68 percent of today’s workers feel they’re over-educated for their current positions. While this is related to building a career path, it’s not the same. A position may have a title that looks great on a resume, but if the day-to-day operations don’t actually feel interesting and engaging, the worker is going to be looking for the exit door. Heathfield notes, “Work closely with employees who report to you to ensure that each employee is engaged, excited, and challenged to contribute, create, and perform. Otherwise, you will lose them to an employer who will.”

The Company Lacks Vision

To keep great workers, you have to make it possible for them to feel aligned with a company vision that’s both meaningful and tangible. Gallup CEO Jim Clifton, in his foreword to the 2017 report, puts it succinctly: “Change from a culture of “paycheck” to a culture of “purpose.” Your very best employees are the ones with a powerful sense of internal motivation, and you nurture that motivation by showing them how their efforts contribute to the overall goals of the company. CNBC notes, “Some of the most successful companies are able to attract and retain great employees because they are great at communicating their vision all the way from the top down to the front-line workers.”

Their Efforts Aren’t Recognized

While it’s essential to give your employees the sense of purpose mentioned above, that alone is not sufficient. Even your top workers, who care passionately about doing a good job, still have a psychological need to be recognized for the effort they expend. Emotional intelligence leader Travis Bradberry comments that a failure to recognize good work is one of the biggest mistakes a manager can make. He writes, “It’s easy to underestimate the power of a pat on the back, especially with top performers who are intrinsically motivated. Everyone likes kudos, none more so than those who work hard and give their all.” Establishing a system for employee rewards and recognition is fundamental to nurturing those human resources that your company is lucky enough to have.

In today’s tight labor market, it’s more expensive than ever to lose a good worker. Josh Bersin of Deloitte points out that employees are “appreciating assets,” while the cost of losing one is generally about 1.5 to 2 times the person’s annual salary. Furthermore, the increasing team emphasis of many workplaces makes it harder than ever to integrate a new hire. Keeping your workers engaged is essential to running a successful business, and every manager needs to stay focused on this goal. To learn more about employee turnover, check out our infographic 6 Stats That Speak to Employee Retention.

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