The term “employee engagement” has been used more frequently in recent years because businesses are realizing how much it impacts their bottom line. Employee engagement refers to how invested your employees are in your company and their work. The reason this has become so popular is that engaged employees are the key to a successful company. A highly engaged workforce has been shown to boost retention, productivity, and profitability. The average employee spends nearly 60% of their time at their workplace and if this employee is unhappy with their job, their productivity automatically decreases. This can be a major problem, given that productivity is essential for all organizations. There is no doubt that employee engagement directly affects productivity, and managers are increasingly understanding the impact of this relationship. Let’s take a look at a few reasons why employee engagement is essential for boosting productivity and transforming the workplace.
Engaged Employees Have a Higher Job Satisfaction
Studies have shown that disengaged employees cost the U.S. between $450-$550 billion each year in lost productivity. Similar studies have also found that businesses with a high level of engagement have a 21% higher productivity rate. This proves the point that employees tend to be more productive when they are satisfied with their jobs. Job satisfaction is crucial, as this is what motivates employees to keep pushing themselves and working hard. Employees who are enthusiastic about their work strive to exceed expectations and this can be extremely beneficial for the organization.
Engagement Fosters Collaboration and Communication
When employees find their job meaningful and feel valued as a team member, this improves internal communication and collaboration. They are more open to collaborating with team members in other departments and they work together to achieve a common goal. Strong communication from management is equally important because it helps clarify the company’s goals and provides a clear direction for the team. Together, these factors lead to better results and increased productivity.
Engagement Increases Customer Satisfaction
People who are passionate about their jobs are the best employees to interact with your customers because their passion is infectious. If the employee is excited about the product or service, the customer will take notice of this passion. When an employee believes in the company, they are more likely to deliver a better customer experience and this increased customer satisfaction will drive sales.
Engagement Increases Retention
Engaged employees are often happy and invested in their jobs and are therefore less likely to leave. Conversely, disengaged employees might find the work unfulfilling and are more apt to leave. Low retention rates can be disastrous for a company because it not only costs a lot of money to rehire and retrain, but other employees will take notice of the high turnover and it could lead to a domino effect. Keeping employees engaged and motivated is critical for increasing retention and boosting productivity.
Engagement Cultivate a Positive Company Culture
When employees feel valued and appreciated, it helps to cultivate positive company culture. Employees who are happy and engaged in their work are likely to share this passion with others in the workplace. The positivity becomes contagious and the work environment is more pleasant for everyone. When employees are happy working together, this increases job satisfaction which in turn decreases retention and increases productivity.
Engagement Attracts Top Talent
Companies that have low turnover rates and positive company culture are more likely to attract top talent. Job hunters want to work in a pleasant environment and they are more likely to be interested in an organization with a positive and thriving culture. When companies attract talented workers, the results can be outstanding.