An organization requires employees for it to grow and develop. Employees work on the general business operations and as such, are the backbone of any organization.
While employees make it possible for businesses to grow, there are a lot of factors to consider for the workers to stay productive and remain satisfied with their jobs.
Otherwise, the workforce can become disengaged and disengaged employees can cost companies a lot of money. According to The Conference Board, disengaged employees are costing companies $450-500 billion each year.
Top companies strive to keep their employees engaged. This is what separates them from the others. There are a lot of benefits with having an engaged workforce. On the other hand, having disengaged employees can be detrimental.
Here’s everything you need to know about the importance of employee engagement:
What Is Employee Engagement?
Employee engagement is a workplace concept that aims to provide the ideal working conditions for the workforce to promote motivation that results in optimal performance, greater loyalty and commitment to the company’s goals and vision.
According to David Macloed, “this is how we create the conditions in which employees offer more of their capability and potential.” It’s having the employees become more involved with their work
The Benefits of an Engaged Workforce
Engaged employees are more productive than those who are not engaged because they are more committed in doing their work and they don’t feel miserable when working. There are a lot of studies that have shown how engaged employees are more productive.
According to Business2Community, organizations that have an engaged workforce outperform those with low employee engagement by as much as 202%.
Moreover, engaged workers stay twice longer in work and their belief in accomplishing their duties is also doubled. This is according to a study conducted by iOpener Institute for People and Performance.
Engaged employees are also happier. This means that they are less stressed, have good physical and mental health and are more creative. This is why businesses with happy employees thrive.
An engaged workforce is a sign of effective leadership. This is because good leaders have excellent skills in influencing people. Leaders play a major role in boosting employee morale. Good leaders know how to recognize the efforts of employees and act on it.
In doing so, continuity of employee engagement is assured. An engaged workforce, in turn, helps enforce the ideals and values of the leader. Moreover, motivation and positivity is contagious. This helps further develop employee engagement among the workforce.
- Employee productivity
- Customer rating
There’s less workplace conflict with an effective leader. The negative effects of employee conflict is detrimental to a company. You won’t have to worry about this if you have an engaged workforce and an effective leader.
When employees are engaged, studies have shown that they perform much better. Engaged employees are less stressed and have better resilience to stress as well. As a result, they commit less mistakes and are more creative than disengaged workers.
Here are results from a study conducted by Gallup about performance in relation to employee engagement:
- Lower absenteeism – engaged employees look forward to going to work. Organizations with an engaged workforce experience a 41% reduction in absenteeism.
- Lower turnover – the chances of employees wanting to stay with their employers is greater for engaged workers. Businesses with an engaged workforce have a 24% lower turnover rate.
- Fewer accidents – engaged employees are more aware about their surroundings and can better focus on their work. Engaged workers cause less injuries, less accidents and less mistakes at the workplace. There’s a 70% decrease in safety incidents with engaged workers.
- Higher customer ratings – Workforce on the higher levels of engagement have 10% higher customer scores and 20% greater sales than those on the lower end.
- Higher Profitability – engaged employees average 21% profitability.
Having an engaged workforce is key to having productive, healthy and loyal employees. The impact of happiness at work can be observed in an organization that promotes and practices employee engagement.
It’s a long-term strategy for business success and is a win-win for both the employer and the employees. Engaged employees can help take your business to the next level. According to Gallup,
“Engaged employees are the ones who are the most likely to drive the innovation, growth and revenue that their companies desperately need. These engaged workers build new products and services, generate new ideas, create new customers and ultimately help spur the economy to create more good jobs.”
Now that you know the benefits and importance of employee engagement, transform your organization by making the workforce more engaged. With it, success and happiness in both professional and personal life can be achieved. Begin the transformation today.