Employee Engagement: The business benefits of an engaged workforce
We often hear that employee engagement is good for the workforce – when our teams are engaged, they’re happier at work, and their quality of life improves. But did you know that an engaged workforce also leads to better business results? According to focus group Engage for Success, businesses with the highest engagement scores were 18% more productive than those with low engagement.
Employee engagement comes in many forms – a positive work culture, inspiring leadership, excellent training, development opportunities, engaging events and workplace incentives are just some of the methods prominent organisations have adopted.
With a smart engagement strategy, you can expect to see the following benefits for your business…
Loyalty and employee retention
Did you know that it can cost between 30-50% of an employee’s annual salary to replace them? A high turnover of staff is a huge drain on resources, both time and money, but it’s something that can be avoided by implementing effective engagement initiatives.
When staff feel that they are in a supportive, positive environment, they are more likely to stay on at their company. In fact, a study by Indeed showed that half of the UK workforce would turn down a pay rise if it meant having to work in an environment they didn’t like.
Organisations can foster loyalty by creating positive work spaces and communicating a nurturing workplace culture. In the long run, this leads to a higher rate of staff retention, an experienced workforce and a lower recruitment bill.
Focus and performance
It’s hard to concentrate on a task if you’re feeling stressed. Employees can feel overwhelmed if they have too much on their task list, don’t feel they have the right skill-set or don’t understand how their role impacts the organisation.
By providing the right training and helping employees to develop in areas where they lack confidence, employees are much less likely to feel anxious in the workplace. As a result, they are able to focus on the task at hand with fewer distractions.
Sadly, a report by Robert Half UK suggests that 63% of employees experience stress at work. Another survey by Personal Work shows that happier employees are 12% more productive, showing the impact employee engagement can have for businesses as well as individual employees.
Motivation and productivity
In order for employees to work to the best of their ability, they need to feel motivated. As you’ll know if you’ve ever made a new year’s resolution, keeping to goals can be tricky, but it helps if you have something to motivate you.
Learning and responding to what motivates your employees is a fantastic way to keep them engaged. Beyond financial incentives, employees look for unique benefits that an organisation can offer, such as exciting events, fitness perks and reward schemes. These can result in higher rates of productivity.
Employee engagement doesn’t happen overnight – it requires a shift in culture, with employees becoming an important focus of business operations. There is considerable evidence to suggest that engaged employees can have a significant impact on an organisation’s overall performance, so investing time and resources into developing effective engagement activity is worthwhile.