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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Do you have any thoughts on this article? Share your comments below.

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.





Shocking HR Stats

13 Scary Employee Engagement and Recognition Stats That Will Spook You This Halloween

Are you haunted by worries that your best people might quit right before a key deadline? Does lack of team alignment keep you awake at night? Don’t let the tentacles of leadership doubt creep into your brain during hours when you should be rejuvenating. Read through these thirteen hair-raising employee engagement and recognition statistics below and banish any lurking shadows from your company culture.

1. Workers are Still Rewarded Just for Existing

In a scary throwback to the mid-twentieth century, 87 percent of employee recognition programs center on how long the person has been at the company. While it’s true that minimizing turnover is helpful, nobody comes to work every day because of recognition they’ll be awarded in some future year.

2. Frequent Recognition Gets Overlooked

We know, your life as a manager gets hectic, and you may assume employees can read your mind when you don’t express the appreciation you feel. Pro Tip: They can’t. A Gallup survey finds that only 1 in 3 workers strongly agree that they have been praised or recognized within the past week for doing good work.

3. Most Workers are Not Engaged

According to Gallup’s 2017 State of the American Workforce report, 51 percent of employees state that they are not engaged in their jobs, which means they’re likely keeping an eye open for a new job. That’s a scary thought, isn’t it? And don’t even think about the distracted workers doing jobs that have a direct bearing on other people’s health and safety.

4. Leaders are Falling Down on the Job

Gallup provides some truly alarming figures related to the failure of leadership in today’s companies: Only 15 percent of employees “strongly agree” that their management gives them confidence about the future of the company, and only 13 percent state that the company’s leaders communicate effectively throughout the organization.

5. Actively Disengaged Workers: A Problem Waiting to Happen

The number of “actively disengaged” workers, at 24 percent, is nearly double the 13 percent of workers who say they are actively engaged. This can be expensive to your business, as Gallup points out that each instance of employee turnover costs your company an average of 1.5 times the employees’ salary.

6. Recognize Them or Lose Them

Research published in Human Resources Today finds that “the number one reason why people leave jobs is limited recognition and praise.” This is a simple statistic, easy to remember, that will help you keep your talented workers on board for the longer term.

7. Criticism Impairs Thinking

You may think constructive criticism will elicit star performances, but neuroscientists disagree. In fact, criticism activates higher levels of the hormone cortisol, which researchers say “shuts down the thinking center of our brain.” Praise, on the other hand, stimulates the basal ganglia to release pleasure hormones dopamine and oxytocin, which improve performance and attention levels.

8. Lack of Recognition Interferes with Performance

Do employees who aren’t praised work harder, in hopes of eventually being appreciated? Harvard Business Review says “No.” Their research points out that 40 percent of American workers say they would put more effort into their jobs if their employer recognized them more often.

9. Don’t be Part of this Statistic

The Harvard Business Review study cited above also found that the average employee in their survey reported that it had been 50 days since they last felt recognized for anything they did at work. What number would your average staff person mention, if a surveyor were to ask this question?

10. Millennials Can Slip Away

A recent Deloitte survey found that 2 out of every 3 millennials expect to leave their current job by 2020. One major reason for this restlessness is that this generation feels their skills are not recognized. Only 28 percent of respondents stated that their organization is currently making full use of their skills. To keep your younger workers engaged, you need to recognize their efforts by offering development opportunities.

11. Millennial Need for Flexibility is Overlooked

Chances are good that the millennials working for you want more flexibility. Eighty-eight percent of younger workers want more schedule flexing authority, while 75 percent want the opportunity to work for home. Meanwhile, only 43 percent of these workers are allowed to work from other locations… so it’s a good bet that some of your staff are surfing the web looking for more adaptable jobs

12. It’s Up to You

Management accounts for 70 percent of the variance in engagement scores. That’s both good and bad news. It means you have a huge influence when it comes to upping your employee engagement scores, but it also means that no other techniques for increasing engagement will be successful if you ignore your role in the solution.

13. Don’t be Overconfident

You’ve just read a dozen statistics indicating just how big the room for improvement is. Here’s one last warning to take with you: 89 percent of senior managers feel that their company is actually very good at recognizing their workers. This means they probably won’t change. Don’t be part of that overconfident group.

The figures above come from a range of sources, but they all deliver one single message: Rewarding and recognizing your employees is a no-brainer. You work hard on all kinds of complex tasks in order to bring success and sustainability to your company. Don’t overlook the most obvious — and simple — building block of workforce loyalty: prompt, varied employee appreciation.

For more insight on the importance of recognition in the workplace, check out Achievers’ eBook, Recognition Culture: The MVP of Employee Experience.

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