We write a lot about employee engagement and satisfaction, and some small business owners may question why it matters. Research shows that there is a significant financial impact tied to employee engagement. Gallup has shown that investing in employee engagement provides companies two-and-a-half times the financial gains than if you didn’t invest in engagement.
Additionally, Willis Towers Watson found similar results. Having engaged employees at your organization leads to a 19% increase in in operating income and 15% improvement in engagement levels led to a 2% improvement in operating margin. It is hard to ignore the financial impact engagement has on an organization.
Many things tie into this financial impact, not the least of which is the high cost of employee turnover. Not too long ago, the job market was dismal. Unemployment rates were high and most employed individuals were not seeking out new opportunities. Employees didn’t ask for expect much other than a paycheck. They were just grateful to have a job at all. With the change in the job market and unemployment rates dropping, employees began to get a wandering eye. Particularly in areas like Utah where unemployment rates are very low and skilled job candidates are scare, employers quickly learned that they had to do more to attract and retain the best employee talent.
Having a highly engaged workforce is also linked to lower levels of safety incidents and higher quality work.
On top of the financial impact, it is simply more enjoyable to work with people who want to work for you. High employee engagement is linked to greater employee happiness and satisfaction. These employees enjoy coming to work each day and feel pride in the work that they do. That is a much better environment to come into every day.
The good news is there are many small things employers can do starting today to increase employee engagement in their organization. Here are some recent blogs with inexpensive ideas for increasing engagement: