The Impact of Employee Engagement

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Employee engagement is essential in any organisation. A lot of small enterprise owners like to view this as something that is only important in large organisations since they have more employees to worry about. The truth of the matter is that all organisations need to have higher engagement levels with their employees. Why is this so? Engaged employees are more productive at work and their motivation to give their work 110% effort goes beyond their personal needs. Such employees tend to be more focused and they are motivated to produce results. This means they have a greater impact on the company’s end result. A study which was conducted on Fortune 100 companies found that disengaged employees had a 1,000% increase in mistakes made at the workplace when compared to engaged employees. In another research conducted on over 955,000 employers from 32,394 businesses, there were major differences between engaged employees and disengaged employees. This analysis found that there was an 18% decrease in productivity between the high and low performers. There was also a drop in the quality of the products produced by these employees by 60%. Research has consistently shown that low engagement levels amongst employees is not only detrimental to the organisation’s bottom line but to employee retention as well.

Employee Engagement
Employee Engagement

Let’s pay attention to what studies show. According to a 2013 report published by AON Hewitt, a simple percentage increase in engagement could lead to a growth in sales by 0.6 percent. If we were to play with numbers, we’d see that increasing engagement automatically increases revenue. Studies show that engaged employees try harder at work when compared to disengaged employees. They are more willing to go the extra mile to meet and even surpass their company’s goals for the mutual benefit of everyone. Companies that have employee recognition programs are also more likely to have engaged staff which as we have already established means greater revenue.

What is the cost of poor engagement in the workplace? Absenteeism is one of the major effects. Disengaged employees cannot stand their workplaces and tend to have higher absenteeism rates. Engaged employees on the other hand understand their importance and the effect of their contribution, they are therefore consistent when it comes to turning up for work and producing tangible results. Engagement does indeed play a crucial role in reducing absenteeism at work. In 2009, Harter et al. found that organisations with disengaged employees had higher absenteeism rates by 37%. The impact or failure of engagement therefore has major implications in an organisation’s bottom line. Encouraging engagement is not difficult; you first need to create an environment where each employee is considered a part of the team. Create an employee reward programs and remember that your organisation can structure management systems that can influence engagement.

Employee Recognition Programs
Employee Recognition Programs

You can help enhance the engagement of your employees. It’s never too late to make changes, but make sure that the changes are done correctly. Speak to a professional and get help initiating employee recognition programs.