Why Employee Engagement is Key to Company Success
Employee engagement is quickly becoming one of the most important indicators in gauging work satisfaction. Employees today are looking for more than just a 9-to-5 job. They want to be involved in their work, enthusiastic about the organization they work for and committed to their fellow workers. In a study of companies with over 500 employees, researchers found that 71% of managers felt that employee engagement was one of the most important factors in overall company success. Despite employee engagement being viewed as a positive company-wide, the majority of employees are disengaged at work. According to Gallup data, only 33% of employees reported they are engaged at work. Low engagement can be caused by several factors including lack of recognition by managers, poor company communication and not being aligned with the mission of the company. It’s clear that company leaders need to start viewing employee engagement as a strategic business objective because engaged employees lead to long-term employee retention, higher levels of productivity and improved quality of work.
HR leaders are focused on improving employee engagement at their organization and retention is one of the key reasons. Organizations with high engagement reduce turnover and hiring costs. Engaging employees is critical for retaining valuable talent and is an important piece of the employee satisfaction puzzle; as disengaged employees are more likely to leave their jobs. According to Forbes, employees who are engaged in their work are more likely to be motivated and remain committed to their employer. This leads to achieving more business goals and helping to drive the organization forward.
Employees who are engaged at work are more likely to be productive on a consistent basis – which leads to more revenue. Companies with a high level of engagement report 22% higher productivity according to Gallup data. Employers are quickly seeing this trend and investing more in employee engagement. The Workplace Research Foundation found that employees who are engaged are 38% more likely to have above average productivity. But is there a dollar amount that can be associated with an engaged employee? Actually, yes. Talent Culture found that increasing employee engagement investments by 10% can increase profits by $2,400 per employee per year.
Significance of Employee Engagement
When employees are engaged, they are more likely to invest in the work they do which leads to a higher quality of work produced. Engaged organizations have double the rate of success compared to less engaged organizations according to Harvard Business Review. Employees who are engaged are more involved and work harder while disengaged employees are likely to only do the bare minimum to get by. This holds true for organizations across multi-industries including healthcare organizations or factories. HBR also found that organizations which scored higher in employee engagement reported 48% fewer safety incidents and 41% fewer patient safety incidents.
Employee engagement needs to go beyond a cool-looking foosball table in the break room, or shiny incentives like flexible work hours or bringing your dog to work. Employees who are truly engaged will be motivated to do their best work every day and stay with a company who is taking employee engagement seriously. By investing in employee engagement, your company will be able to increase productivity, work quality, and retain top talent. Good news – according to Gallup data, employee engagement is on the rise with 34.1% of employees engaged as of March 2016 – the highest level of employee engagement since Gallup began tracking in 2011.
If you are interested in learning more about the importance of employee engagement and how it can influence your organization, check out our eBook The Technology Gap in Corporate Communications.