5 Ways Engaged Employees Help Your Bottom Line
Employee engagement is often thought of as making employees happy. In reality, employee engagement is much more and has a large impact on the organization’s bottom line. It seems as though more and more people are realizing this, though some are still convincing their leaders and managers just how important it is. We want to help you by telling you ways that engaged employees really do help your bottom line.
- Voluntary Turnover is Expensive
We all know that turnover is extremely expensive. In fact, replacing an employee costs, on average, 100% of that person’s salary – this factors in recruiting costs, training and development, loss of production and more. Engaged employees have significantly less voluntary turnover rates. According to Gallup, highly engaged workforces have 65% less voluntary turnover than organizations with disengaged employees. - Absenteeism
Engaged employees are also less likely to call out sick or not show up for work. According to the 2013 State of the American Workplace by Gallup, organizations with more disengaged employees have 37% greater absenteeism than organizations with engaged employees. - The Bottom Line is the Bottom Line
Engaged employees are sensitive to the bottom line and treat the organization’s resources as if they have a personal stake in the organization. Disengaged employees have the mentality that the organization has plenty of money and are more prone to being wasteful. - A Happy Customer is a Returning Customer
According to Bill Marriott, it’s essential to take care of your employees. He said, “If you take care of them, they’ll take care of your customers and the customers will keep coming back again and again.” Think of a brand that you’ve had a wonderful experience with – it’s highly likely that you interacted with an engaged employee at an organization that puts their employees first. Your positive interaction likely means you’ve been a customer to the same business again. - Doing Well by Doing Good
Firms that have a clear purpose that drives the business outperform their peer group by a factor of six! When organizations have a purpose rich culture their employees also tend to be purpose-oriented, meaning they are more likely to have an emotional commitment to the organization and it’s purpose. Engaged employee are also more likely to volunteer at work and are quick to help out when asked.
Knowing that facts listed above, it’s becoming more clear to organizations that focusing on employee engagement is an imperative. Can your bottom line afford to not have engaged employees?
– Kaitlyn Carr, Organizational Development Specialist @EmplyEngagement @kacarr789
