Workforce engagement has found itself at the top of the priority list for businesses of all sizes, and with good reason. But what are the financial gains? Can focusing on employee engagement save or even make money?
Engagement increases productivity – A survey conducted by Hay Group, a global management consulting firm, revealed that engaged workforces are up to 40% more productive than those who aren't engaged. When engagement levels among employees increase, it increases their productivity which in turn, improves the proftiabilty of the organisation
Hiring new staff is expensive and time consuming. Research suggests that the real cost of an employee replacement can cost as much as 50 – 60% of his/her annual salary, but the total costs associated with turnover can range from 90 – 200%, according to SHRM. This cost has brought employee retention to the top of the priority list for HR and finance departments alike.
When staff are engaged with their company and position, they experience a greater sense of loyalty and safety in their role. Salary aside, a disengaged employee is left with very little incentive to stay with their “team”.
An engaged team is one of enthusiasm and understanding of their company's goals; meaning your staff base becomes a pipeline of candidates for internal promotion, cutting costs on recruitment for managerial and leadership roles, and developing a culture of progression within your organisation which ultimately drives retention.
Offering this experience to your employees is reflected in your "employer" brand, and increases your company's overall appeal to potential employees. Should a business advocate for an engaged approach to workforce management, in today’s modern age where all work experiences are voiced and compared, their reputation will speak for itself. Good candidates will want to be in an engaging environment.
Links have been shown between employee engagement and customer satisfaction and retention. When employees are satisfied, they happily serve customers resolving all their queries and doubts. They offer them genuine consultation and guidance, which helps build a long-term relationship with your customer base.
Most importantly, how does good employee engagement affect your company’s performance?
From a quick look online you will find a lot of studies on the correlation between employee engagement and performance. Dale Carnegie and MSW completed a study of over 1500 employees, and found that companies with engaged employees outperform those without by up to 202%.
Gallup’s 2013 State of the American Workplace report claims that companies with engaged employees and engaged customers see a 240% increase in performance-related business outcomes when compared to those with neither engaged workers nor engaged customers.
The financial benefits of engaging your employees are obvious, and the good news is that it is a very affordable idea to implement. With some minor business changes and some investment in something as simple as employee apps & mobile technology, the benefits involved will be quick and long-lasting.
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