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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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.





Navigate Your Culture Transformation

How to Navigate a Successful Culture Transformation Process (Part 2)

Are you ready to transform your company’s culture? In Part 1 of this series, I discussed the process for a successful culture transformation. In this blog, I’ll discuss key tips and reminders to help you through the process. Let’s start by understanding that although this is not a quick and easy process, it can be done.

Transformations Take Time

The transformation of habits and attitudes does not occur overnight, especially when employees have been allowed to operate in a certain way or in status quo for a long period of time. Employees will naturally resist change at first, so the first thing to remember during a transformation process is that you need time. The good news is that you usually have more time than you think. While poor customer feedback, slumping profits, or even a crisis can create an incredible sense of urgency that something must be done now, the more time you plan, prepare, and work with your managers, the more likely your culture transformation will be successful. You cannot just focus on the employee base to successfully transform the service culture of your organization. As discussed in Part 1, the key to successfully transforming your culture is to focus on your front-line managers, enabling and empowering them to drive and be responsible for the change process. You also need the change to be led from the top, so in effect, everyone in the organization plays a part.

It Is All About the Habits

“We are what we repeatedly do. Excellence, then, is not an act, but a habit.” —Aristotle

Strong work habits are the key to successful execution. To change and improve your corporate culture, you must identify the habits or behaviors that need to be removed and replaced.  It is important to explain why certain habits need to change, but more critical, is to know what new attitudes and behaviors must be introduced. While new habits can generally be introduced relatively easily and quickly, it is the removal of old or outdated habits and thinking that takes time. As economist John Maynard Keynes rightly suggests, “The difficulty lies not so much in developing new ideas as in escaping from the old ones.” To escape from old ideas, you cannot rely on training alone. You must take time to stimulate thinking and conversations that highlight why current habits and attitudes are hurting the business, brand, and interactions. At SGEi, we utilize a three-pronged approach of stimulation, training, and socialization to help remove old habits and introduce new ones.

Begin With Stimulation

Before you deliver any training on the new work habits you want to see, you must get people out of status quo and begin having conversations that promote thinking. We like to utilize various media like posters, quotes, videos, and business cases to help get the conversation started. It is not important that people are able to explain ideas or answer questions correctly, rather, it is necessary to focus on getting everyone in the organization talking and having conversations. This is the first part of the management team’s training, we take them through communication training and how to deliver effective messaging. Getting daily or weekly meetings started where managers are creating conversations is an important part of the stimulation process. As the stimulation process evolves, conversations around why certain habits are unhealthy or outdated are included.

employees in conference

The key to the stimulation process is to ensure you are providing the management team with the important sound bites you want them to repeat and talk about with their teams. In the previous blog, I talked about the importance of manager accountability. So to ensure stimulation is happening correctly, it is important to observe and listen in as the managers talk to their teams. Also, it is important that the managers begin demonstrating the desired behaviors and habits before the staff go through any training.

Deliver Great Learning Experiences

For training to be effective, it should occur after time has been spent talking about why change is required, why certain behaviors or attitudes are no longer effective, and what the expectations of performance look like moving forward. If done correctly, the employees should be asking for training and information regarding how they can improve in the future.

When it comes to training and development, keep in mind the following ideas:

  • Keep training sessions under two hours at a time and do not overload them with too much content.
  • Conduct the training with cross-discipline groups so that staff can get to know other staff outside of their immediate area.
  • Make the training fun and interactive so it is memorable. Remember, staff will not walk out of training ready to adopt new habits—that will occur with socialization—so consider training as just an interrupted opportunity to communicate.
  • Spread the training out so that participants have time between sessions to process and practice on information presented.

Deliver the Change You Want Through Heavy Socialization

Probably the most important part of this process is socialization. Once staff have gone through training, you need to reinforce key messages and communicate them repeatedly. Have a communication plan that continually shares information with your employees about the transformation process. All executives and managers must be involved in this, not just the Human Resource team or a few managers who speak very well. Communication is the most important leadership tool. Therefore, no manager can make the excuse that they are not good at it. An inability to communicate is an inability to lead, so this is an important test of the management team.

employee presenting

In addition to ensuring your managers are reinforcing the new habits in their daily and weekly communications, you should provide learning reinforcement of any classroom training with e-learning so staff can learn on their own in their own time. For some employees, learning on their own time is most effective. You also have to allow time for staff to practice. One of the best practices we have implemented on various projects is to schedule rehearsals for staff to attend each week. It is amazing how habit transformation is significantly enhanced by providing practice time to staff away from your customers. One hour per week for four weeks is a great opportunity to transform mindsets and behaviors. Ensure you have the managers lead these small group sessions (no more than twelve people), so they can practice explaining why the change is important and what is expected as well as practicing giving feedback. This best practice is a win-win for all.

The final critical element in habit transformation is to ensure your managers are providing clear, timely, and consistent feedback that provides insights into what the staff are doing well and what they can improve on. In Part 1, I explained how all managers must have a responsibility for the change process. The change process can only be successful when managers are reinforcing the training through continuous feedback and coaching.

Remember That You Are Building a Movement

We stress that in the early stages of transformation you must focus on those staff that are excited by and already embracing the change rather than those that resist. There will always be those that resist, and yet, so many times we spend all our energies trying to change them. The reality is they might not ever change. In the meantime, we fail to capture the hearts and minds of those that want change. To transform successfully, you must find and embrace those that are excited by the change. As they get on board, they will find and embrace others. Successful transformation is a numbers game—the more people you have supporting, excited by, and leading the change, the more likely you are to help everyone in the organization successfully change. Of course, there will be those few that resist, but many of them are smart enough to shift their perspective when they see such overwhelming support for the changes ahead.

Don’t Forget to Recognize a Lot

employees high fiving

Recognition is a key component of employee engagement. Remember that your managers need recognition too. Ensure you make a big deal about those managers, teams, or departments who are leading the way. I recommend enhancing your company’s employee recognition program during the critical parts of the transformation process, particularly when managers are communicating with their teams regarding the transformation and as front-line training begins. This provides positive reinforcement for those embracing the transformation process.

Cultural transformations are not easy, but they are necessary for continued success. By understanding the process and following these key tips, you will find yourself better prepared for this undertaking. Know that while the initial transformation process can be difficult, it is amazing once you get traction in a movement, start recognizing successes, and celebrating people’s change. You will quickly have your people tell you they wish you had done this a lot earlier.

“At first, people refuse to believe that a strange new thing can be done, and then they begin to hope it can be done, then they see it can be done, then it is done, and all the world wonders why it was not done centuries ago.” —Frances Hodgson Burnett, English writer

To learn more about how to enhance your company culture through recognition, check out this eBook Recognition Culture: The MVP of Employee Experience.

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About the Author
Shane GreenA world-renowned keynote speaker, author of Culture Hacker, and television personality, Shane Green is a business magnate who consults global Fortune 500 leaders on customer experience and organizational culture. Shane draws upon his foundation at The Ritz-Carlton Hotel Company and work in multiple industries to transform employee mindsets, habits, and skills to improve customer experiences and interactions. As the President & Founder of SGEi, Shane leads a team of professionals who inspire brands like the NBA, Westfield, Foot Locker, NetJets, Cisco Systems, and BMW to reprogram their employee experiences to create loyal customers and raving fans. Visit to learn more.

About SGEi
At SGEi, we help executive teams develop a cultural transformation strategy and plan. We enable and coach your management team to own the continuous development of your company and people. And we design and deliver the training and communications necessary to shift mindsets and habits to meet the objectives of the company. Please to learn more about how we can assist you with your transformation needs.