Have you ever wondered why is employee engagement important? What specific research, stats, and facts stand behind the importance of employee engagement?
Well, if yes, then you’ve come to the right place!
In the infographic below we’ve put together the most prominent employee engagement data available today:
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Why Is Employee Engagement Important?
[Transcript & Additional Information]
1. What Is Employee Engagement?
Employee Engagement Definition:
Employee Engagement is a cornerstone concept covering the emotional attachment of the employee to the employer and its goals, work ethics, values, philosophy, and objectives.
Engaged employees usually treat the business they work for as their own. This naturally results in higher commitment, stronger motivation, increased happiness and also better productivity.
The employers usually can influence the level of employee engagement in their organizations.
2. The Importance of Employee Engagement. Why Is Employee Engagement Important?
So, why employee engagement matters?
The short answer is because the impact of employee engagement is tremendous.
The employee engagement research shows that employees who invest in their roles are certainly more productive. According to Gallup Employee Engagement Study, engaged employees are 21% more productive than their less engaged counterparts.
Moreover, staff engagement increases customer satisfaction. Thus, people who are passionate about their work are often the best people to interact with your customers.
Usually, engaged employees invest in their roles. Therefore they are less likely to leave their job.
However, sometimes your best people are not engaged. In this case, you risk losing them. This once again highlights the employee engagement importance and means that you should certainly take action whenever you notice that the engagement levels of your employees are going down.
Below are some employee engagement stats that also show how the employee engagement is material to your business.
Employee Engagement Statistics (US):
- Businesses lose $11 billion annually due to employee turnover (Bloomberg BNA);
- Engaged employees help companies to outperform those with unengaged workers by up to 202% (great indicator of the true value of employee engagement);
- 71% of all employees are not 100% engaged;
- 26% are actively disengaged;
- 45% are not engaged;
- and accordingly, only 29% of the workforce is engaged.
3. Benefits of Employee Engagement
When you ask why is employee engagement important you probably want to know what benefits it entails.
The benefits of employee engagement are mostly inter-connected. This makes them trigger each other.
Here they are:
- Engaged employees are more likely to enjoy their jobs.
- They are also more likely to be satisfied.
Impact on co-workers
- Happy and enthusiastic behavior of the engaged employees helps their colleagues to feel more engaged.
- This also positively contributes to the overall workplace environment. Plus, it motivates co-workers to perform better.
- People are more productive when they are happy.
- Accordingly, employee engagement naturally leads to better productivity (+21%).
Better Customer Service
- Happy employees mean also happy customers.
- Thus, higher levels of employee engagement lead to 10% better customer feedback.
- The engaged workplace leads to 41% fewer quality defects.
- Engaged employees are more innovative.
- They usually treat the business as their own. This brings more innovative products and ideas.
- Employee engagement also increases the focus. This helps to decrease unnecessary communication.
- The higher engagement also helps to build effective natural communication instead of formal.
- Engaged workplaces are safer for employees.
- The engaged employees are usually more attentive to their workplaces.
- Engaged employees are often proud of their company.
- So, they are perfect brand ambassadors.
High Retention and Low Turnover
- Engaged employees are more likely to stay with the company.
- As a result, the organization spends less time, energy and money on hiring.
Better Employer Brand
- Engaged employees share their work experiences with others.
- This positively affects the brand’s employer reputation.
- Accordingly, the better employer reputation makes the recruitment process easier.
- The combination of benefits above helps to increase the profits.
- It also helps to cut the costs.
4. Key Drivers of Employee Management
As the saying goes employees do not leave companies they leave people. Below are the 6 key drivers of team engagement:
- 34% of the millennials (who worked at 5-7 organizations) did not trust their manager;
- 46% of employees do not think their leadership skills are developing;
- 39% of employees are happy to work harder if they feel good at their current position (role) or work environment;
- 80% of disengaged employees do not enjoy working with their direct manager;
- Similarly, 70% of disengaged workers are not confident in the abilities of their senior leadership;
- Being proud of the company’s contributions to society makes 54% of employees engaged.
5. Traits Engaged Employees Exhibit
ENTHUSIASM – Employees are enthusiastic about their work.
INSPIRATION – Leaders are able to motivate their employees.
EMPOWERMENT – Employees have the permission to do the work their way.
CONFIDENCE – Employees are confident about achieving excellence.
6. How to Engage Employees? / Tips for Employee Engagement
How to get employees engaged?
- First of all, the management (senior leaders) must certainly articulate a transparent vision to all employees.
- Secondly, the companies should welcome an open and honest communication within their organizations. Even more, the employees should be able to influence the company’s vision through their input.
- Line managers should cultivate and support healthy relationships with their employees.
- The employees should have an impact on their work environment. The senior leadership should clearly demonstrate this to everyone in the organization.
- The senior leadership should also show employees that they value them as contributors. This empowers the employees.
- In the best scenario, the companies should also have an employee engagement program in place.
So, based on the brief analysis above why is employee engagement important in the end?
Surprisingly, the answer is rather straightforward:
The employee engagement is important because it affects just too many parts of your business.
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