Myra Khanna has eight reasons why employee engagement is essential for business development.
In today’s challenging and volatile business environment, where organisations and industries are undergoing rapid and frequent changes, engaged teams show higher levels of resilience, coping, agility and overall wellbeing.
We know that there is a strong correlation between employee engagement levels and company performance. Engaged teams are more aligned and motivated to meet the company’s mission. Accenture found that companies with high levels of engagement, or higher employee experience, perform 122% better than the S&P 500.
When employees are engaged, their productivity, their quality of work, concentration levels and involvement is greater than those who are not engaged
When teams are engaged they are happier in their work environments. As such, employee engagement impacts turnover. The direct and indirect costs of losing employees and replacing them is prohibitive.
Here are eight reasons why employee engagement is essential for business development:
- Attracting top talent and keeping it. Attracting the right talent is one thing but to ensure that they stay and contribute at ultimate and sustainable levels, companies have to invest in elevating their people’s engagement levels.
- Inclusion. High levels of engagement are also correlated to an inclusive culture. Inclusion makes employees feel valued and engaged, which allows them to be more productive and innovative at work. Inclusivity can be accomplished when team members and leaders are committed to building a culture that promotes diversity of thought. Feeling that you have a voice and are truly heard are key to creating an inclusive culture. These are also essential characteristics to maintaining a diverse culture. This allows for out-of-the box ideas to be shared.
- Higher productivity levels. When employees are engaged, their quality of work, concentration levels and involvement is greater than those who are not engaged. Engaged employees are generally more enthusiastic towards work, meet deadlines, and company goals more effectively. This means that results can be greater, and more consistent. Higher engagement levels also improve organisational resilience and agility that are essential to remain competitive in this world.
- Increases revenue. Aon’s 2018 global engagement report shows that for every five point increase in employee engagement levels, there is a 3% increase in revenue. This is because when employees feel engaged, they are more likely to go the extra mile, develop innovative ideas and work harder to achieve goals. All of this adds to the bottom line. In fact, companies that focus on employee engagement make two and a half times more than companies who do not.
- It is cost effective. As well as increasing revenue, employee engagement also reduces costs. Hiring and losing employees costs both time, and money. We have to consider the cost of looking for a replacement, training, and the time it takes for the new employee to reach similar productivity levels. You can also experience issues of disengaged employees doing suboptimal work, and leaving others to pick up the slack.
- Better wellbeing. Engagement and wellbeing at work go hand in hand. Employees spend the majority of their waking life in a workplace. Work can be stressful, overwhelming and unsupportive. When employees feel engaged, they can feel happier, and contribute positively to the team and organisation. Employee engagement has been proven to reduce anxiety, depression, low work satisfaction and stress. Higher engagement levels tend to equate to higher wellbeing levels.
- Happier customers. To provide a better customer experience, it is important for employees to be engaged. Engaged employees are better advocates and are more able to care from a product development or service perspective.
- Happier management. Above meeting performance targets or KPIs, it is certainly more enjoyable to know that you have facilitated the creation of an environment where people feel engaged and have a sense of purpose. It is certainly nicer to walk on the same drum beat towards the same objectives that all believe in and that are, in a way, aligned with each person’s values. An engaged team is more innovative and agile, which means that they will help you meet your targets. It also means that the company can be more competitive.
About the author
Myra Khanna is founder of Sama