Why Employee Engagement matters

June 26, 2015 1:15 pm Published by

Engagement and productivity are closely linked. Where there are disengaged employees, the productivity will be low. Simply put, Employee Engagement is the degree to which an employee’s feelings about their job (and boss) influences their willingness to perform at work.employee_engagement blog

Engagement impacts more on performance than the other way around. As well as performance and productivity, employee engagement impacts positively on levels of absenteeism, on retention, on levels of innovation, on customer service, on positive outcomes in public services and on staff advocacy of their organisations.

The importance of engaged employees

Today, employee engagement and loyalty are more vital than ever before to an organization’s success and competitive advantage. Gone are the days when a young person starting out in his or her career joined a company and stayed until retirement. In today’s business environment there are no guarantees. Experts predict the current turnover rate may rise to 65%. With recruiting costs running approximately 1.5 times annual salary, the ability to engage and retain valuable employees has a significant impact on an organization’s bottom line. The question for management is how to ensure that the supervisors interact with individuals to generate an engaged workforce.

The share performance curve of organisations with highly engaged employees is generally smoother and generally moves in an upward direction, compared to that of organisations with poor engagement levels. In other words market forces have less of an effect on high engagement environments. Investors are increasingly seeing the link between engagement and business outcomes. Engagement is a great predictor of future financial performance. Engagement effects business outcomes – and business outcomes affect engagement. The two are closely correlated and symbiotic. In good times engagement is bolstered by high profits, in difficult times, engagement drives up profits.

If you are looking for ways to enhance employee engagement in your organization, ask us how.

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