As we enter the year 2024, we find ourselves facing wars, an upcoming national election, global economic downturns, and a significant amount of uncertainty about what lies ahead. However, one thing is certain: by prioritizing investment in an organization's most valuable resource, its employees, we can alleviate much of this uncertainty.
Employee engagement is far from a corporate buzzword. It is the cornerstone for success. Engaged employees are committed to their roles, enthusiastic about work, and connected to their organization’s objectives and values. Employees are your organization's pillars.
According to Gallup, teams with engaged employees show a 21% increase in profitability. This is because engaged employees are motivated, loyal, prioritize teamwork and collaboration, are more innovative, are efficient in their communication, and value ongoing learning.
Higher Retention Rates:
When you take an engagement survey, the rates of engagement and disengagement, are one of the strongest measures to predict turnover. A highly engaged workforce stays. In fact, according to SHRM, organizations with high levels of engagement experience 40% lower turnover rate compared to those organizations with low levels of engagement.
How much does turnover cost your organization?
According to Qualtrics, turnover can be calculated using this formula:
(Hiring + onboarding + development + unfilled time) x (number of employees x annual turnover %) = annual cost of turnover.
Improved Employee Well-being:
Engaged employees experience better mental and physical health, lower stress levels, less burnout, fewer accidents, and a higher level of overall wellness. All of these lead to a decrease in absenteeism and medical costs. According to the CDC absenteeism costs businesses $225.8 billion annually in the United States, or $1,685 per employee. (This is due to worker illness and injury).
Improved Customer Satisfaction:
Engaged employees naturally deliver exceptional customer service. Their enthusiasm and dedication inevitably infuse positivity into the customer experience.
“Happy staff are proud staff, and proud staff deliver excellent customer service, which drives business success.” - Richard Branson
Increased Innovation and Problem-Solving:
Both innovation and employee engagement share a common driver – motivation. Motivated employees are driven to do more, go the extra mile, and work to solve problems without getting frustrated. An organization that cultivates innovation is one that is more agile in dynamic markets, prioritizes collaboration, has strong communication, and values diversity.
Teamwork and Collaboration:
Engaged employees are team players. They nurture positive relationships with colleagues. Collaboration facilitates knowledge sharing (no knowledge hoarders here). This reduces frustration and the silo mentality. It takes away the “need-to-know” power dynamic because everyone has the information they need to do their jobs well.
Engaged employees cost organizations less money. They require less supervision. They make fewer mistakes. They have fewer accidents. They are more efficient. They are less likely to cause social problems (like harassment), which leads to fewer lawsuits. This all saves money for an organization. Disengaged employees often cause organizations valuable resources to doublecheck someone’s work, clean up messes, and pay for accidents.
Engaged employees are plugged in. They understand how their roles and work are an essential part of the company’s mission and values. They are instrumental in helping organizations reach strategic objectives more effectively and efficiently.
Engaged employees are pivotal in creating a healthy organization culture. They are more effective, better team players and communicators, are aligned with organization goals and values, are healthier, and are key in customer relations. 2024 is a big question mark, but one certainty can be each company working to improve their engagement levels and, in turn, profitability.