“Our employees are our most valuable resource”. We’re sure most of you, while working as employees, will have heard the ever so benevolent MD mutter these words at one time or another. But if that’s the case, why doesn’t it feel like it? If you really are the driving force behind the success of the business, why is it that you receive below industry average pay, minimum holiday entitlement, no recognition and an insurmountable workload?
Constantly changing demands mean increasing employee engagement should always be a priority for organisations seeking success. A recent study by Human Resources Today found that ping-pong tables, massage chairs and free snacks are no longer the key to an employee’s heart. Instead, it found that a strong corporate culture and mission that shared an employee’s core values, even more than take-home pay, was the key to employee engagement.
But why is employee engagement so important? Here are five pretty compelling reasons…
1. Increased productivity
When employees are engaged at work, they feel a connection with the company and believe the work they are doing is important. A Gallup study of American employees found that engaged employees are 17 percent more productive than those who are disengaged. We’ve all had personal experience of that. When you’re connected to what you’re doing, you’re more likely to work harder, faster and longer. Research carried out by the CIPD, found that employees who are ‘engaged’ perform better than those who aren’t.
2. Better staff retention
A Hay Group study found that highly engaged employees are 87 percent less likely to leave a company than disengaged employees. Clearly, workers who are engaged in their jobs and enjoy turning up every day are much less likely to leave the company. Not only does this help you retain top employees, but it also reduces the time and expense spent recruiting, onboarding and training new employees. It also eliminates the lost opportunity cost while the roles are filled.
3. More innovation
Successful companies know that a culture of innovation comes from its employees and not from its leaders. To innovate, employees need to be motivated, engaged in their work and understand and be involved in what they do. Opportunities for new challenges, along with recognition and rewards, can all help to drive employee engagement and innovation.
4. Increased customer satisfaction
Engaged employees produce better customer outcomes. If you take care of your employees, they will take care of your customers, it’s that simple. A recent study found that companies which excelled at customer service had 1.5 times as many engaged staff as companies with poor customer experience.
5. Fewer sick days and less stress
If we’re not happy doing something that takes up the majority of our week then it inevitably starts to affect our physical health and mental well-being. Stress is a huge problem in UK workplaces and this often leads to work-related illness. Highly engaged employees have an average of 3.5 fewer days off work due to sickness than disengaged employees, helping to reduce costs and improve productivity.
Make employee engagement an active part of your strategy
The research shows why employee engagement should become an active part of your strategy. Get it right and you can benefit from higher productivity, improved customer satisfaction and a happier, healthier workforce.
How can we help?
Prosper provides a comprehensive approach to accountancy, tax & business growth services for start-ups across the UK. We are your bookkeeper, accountant and finance director all rolled into one. Check out prosper.accountant to learn more about how we can help your business.