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As a business owner, do you believe that fun Fridays and corporate days are simply occasional engagement activities organised by your HR team?
Businesses around the world prioritise employee engagement to keep employees motivated and productive and help them feel like part of the organisation.
For example, companies looking to host the best corporate days out plan for it to be more than just a day when employees are involved in group activities or games. Instead, they ensure that every member of the team is truly engaged and facilitate bonding and co-operation among the team while giving them a chance to unwind.
A casual, happy, and positive workplace environment promotes employee engagement and satisfaction more than an oppressive one in which employees feel neglected, dissatisfied, and unheard.
Would you prefer to work in an environment where you can tell your manager if something is wrong or one where you must remain silent due to excessive red tape? The former company would benefit from quick fixes and team loyalty, whereas the latter would suffer in the long run due to communication breakdowns.
In this article, we explore why employee engagement really matters.
Direct Impact on Performance Metrics
Employee engagement is directly linked to 11 performance metrics, including customer loyalty, profitability, productivity, absenteeism, turnover, and workplace safety incidents. Research shows stark differences between organisations with low engagement and those with high engagement: shrinkage (theft) is 28% higher, and absenteeism is 81% higher in low-engagement environments.
Engagement becomes even more critical during times of uncertainty. If your business is facing slow growth, for example, you would not expect your team to walk away at the first sign of trouble. Instead, an engaged workforce will stay committed, help stabilise the organisation, and work with you to overcome the challenges ahead.
Increased Productivity
An engaged employee will work harder, improving your company’s productivity. Why? Because they feel valued and heard and love the work they do. However, this shouldn’t be taken lightly, and workers shouldn’t be asked to work overtime. It can have an adverse effect on their morale, leading to stress and burnout.
A happy employee will be less absent. During rush seasons, they will happily pitch in or take on additional responsibilities. However, make sure they are adequately compensated. For instance, if you find a senior employee mentoring an intern, do not forget to give them a shout-out at the next meeting. Did your employees just pitch in to meet a deadline by working late or on a Saturday? Compensate for the overtime or give them an additional day off during the week.
Better Customer Service
Customer service is key to business success. Beyond offering a quality product or service, what truly makes customers happy is staff behaviour and interaction. This is especially true in service-led industries such as F&B, hospitality, legal, and accounting.
If you want to reduce your customer acquisition cost (CAC) and improve retention and brand loyalty, invest in your employees. Marketing and sales may bring customers through the door, but what makes them return, or make a purchase in the first place, is courteous, positive staff. In competitive markets, customer service becomes the defining factor between a profitable brand and an unprofitable one.
Engaged employees will go above and beyond to serve customers and ensure they have a great experience.
Brand Advocates
It is normal for employees to leave; it is part of the company lifecycle. However, what makes a difference is how often they leave and their feedback afterwards. Do you find employees leaving within a year of joining? There are many social media platforms for professionals to share their experiences, like Glassdoor or LinkedIn. Does your company have bad reviews from former employees?
Whether you want to attract new customers, investors or even a skilled worker, these factors can greatly influence whether they come on board.
An engaged and happy employee becomes your brand advocate. They promote your company through word-of-mouth marketing, and 91% of B2B buyers are influenced by it. Even if an employee quits, they will leave rave reviews, which can have a positive impact.
Satisfied staff are also less likely to leave, reducing turnover and improving productivity.
Better Profitability
Would you rather spend money hiring and training new employees every quarter or have an engaged workforce that offers quality and productive work?
Every brand wants to be profitable while investing in R&D, and marketing is an important means to achieve that. However, do not forget to invest in your human capital. Offering competitive salaries and benefits, providing opportunities for upskilling, creating an environment of collaboration, trust and recognition, and allowing for transparent communication.
Profitability shouldn’t come at the expense of your employees’ satisfaction and mental health.
Final Words
Engaged employees feel appreciated and valued by their employers. They have job security and flexibility, allowing them to offer their best to your organisation. Giving employees the space they need will help your business in the long run.
While in-office training is helpful, sometimes allowing employees to unwind with co-workers in a non-traditional setting can have far-reaching effects.
Also read: An Engaged Employee Is A Safe Employee: 5 Business Tips To Create A Safe Working Environment
Image source: elements.envato.com
