The Importance of Employee Engagement
Employee engagement can be an abstract term in the workplace. What does it really mean to have engaged employees and why is it important? Here’s why. Engaged employees go beyond their basic work functions to actively contribute to the company’s goals. An engaged employee produces better work, more profit, and a higher retention rate. It may seem like all employees should be engaged, they’re getting a paycheck, morning coffee, and a reliable job, what else could be missing? A recent survey by Gallup revealed that only 33% of workers are actively engaged – therefore productive.
Employee engagement boosts productivity.
Those who are engaged recognize the company goals and how they can help reach them. They see their purpose in the company and know that their actions make an impact. With that type of belief and engagement, they work harder than their less engaged peers. Companies lose over $500 billion on an annual basis from disengaged employees.
Employee engagement leads to higher profits.
Engaged people are more productive, they focus harder on getting work done and feel a responsibility to meet and exceed goals. In fact, a Gallup poll indicated that engaged employees are 21% more productive than their less engaged counterparts. For a sales position, this may mean an extra $100,000 in sales. For a marketing position, it may mean an extra email campaign is generated that bring in more leads. In a customer service view, happy workers lead to quality work, happy customers, and more profit. No matter the position, productivity has a major effect on profits.
Employee engagement leads to higher retention.
Only 12% of employees think their organization does a great job with onboarding. This is a crucial time to engage new employees as 50% of people decide if they are going to stay with a new company within their first week at work. If they have already decided against staying, they aren’t going to be engaged. In fact, they will likely be actively disengaged if they do not see a long-term relationship with the company.
Employees who are engaged view their future with the company. If your company goes through a period of trouble or layoffs, they will be more likely to stick it out. It is also at these times where it is important to monitor employee engagement and reward those who are engaged.
Overall, companies with engaged employees experience better productivity, customer satisfaction, and an increase in profits. SENTIO’s Applicant Matching System (AMS) allows you to see which job applicants will be a great cultural fit for your company, meaning they will be more engaged. Learn more about our AMS or get started today with a free account.
Plus, read the full E-Book, The Ultimate Guide to Employee Engagement.