May 26, 2017

6 Unexpected Reasons Why Employee Engagement Is Important

why is employee engagement important

The real question companies need to be asking is not “why is employee engagement important”, but rather, “why isn’t employee engagement important?”

Considering that only ⅓ of employees in the United States are engaged, and according to the shocking findings from our real-time State Of Employee Engagement around the globe, it’s clear that the issue of engagement in the workforce can no longer be swept under the proverbial rug.

In fact, Harvard Business Review recently referenced employee engagement as: “The holy grail of today’s workplace”.

This post will look at 6 unexpected reasons why it’s important for companies to focus on employee engagement, and offer simple tips for managers to start engaging their teams today.

why is employee engagement important statistics

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Download the complete checklist to see if your employees are engaged.

Why Employee Engagement Is Important

  1. Investing In Employee Engagement Helps Retain Talent

    Ultimately, companies want to retain talent, nurture employees, and build strong, lasting teams.

    But, when employees are disengaged, there’s the risk that they are actively searching for another job.

    According to Deloitte’s Josh Bersin, employee turnover can cost up to 2.5X the employee’s salary, considering:

    1. The cost of hiring
    2. Cost of onboarding
    3. Loss of productivity
    4. Loss of engagement
    5. Training costs
    6. Cultural impact
    Communication is key: Suggest to managers that they hold monthly one-on-one meetings so employees can express themselves, and integrate a continuous feedback tool into your teams so employees can share their thoughts anonymously.
  2. Disengaged Employees Cost Companies Money

    Employee engagement can seem intangible. We get it. But it’s costing the US alone approximately $550 billion dollars a year.

    We created an interactive ROI calculator, so you can measure the return on investment that your company will earn by investing in employee engagement.

    You can check it out here.

    Create a culture of recognition:
    Giving credit and praise for your employees’ hard work gives them the validation that they are being seen and respected. They will reciprocate your recognition with hard work.
  3. Employee Experience = Customer Experience

    Whether or not your employees ever meet or interact with your customers, they are still very much connected, and they are equally as important.

    The experience that your employees have at the office translates to the experience that your customers have with your brand.

    When employees are engaged, they are more invested in what they put out, and the customer will feel that in the product or service they receive.

    Offer benefits that show you care:
    Offering benefits and perks such as the opportunity to work remotely or flex hours will help your teams remain engaged as they will feel that you care about their needs as people, and not only workers.
  4. Engaged Employees Show Up To Work

    Disengaged employees don’t enjoy coming to work.

    They either feel stressed and overwhelmed, resulting in absence due to sickness, or they find excuses not to come in, because they simply don’t want to be there.

    Absenteeism is problematic as it results in lost productivity, delayed deadlines, lower team morale and subsequently, resentment between employees.

    Ultimately, you want your employees to WANT to come to work.

    Yes, it’s possible.

    Make your office environment fun: Look around you. Is it inviting? Try to create a space that is enticing. Hang motivational quotes on the walls, and create interesting workspaces that are conducive to creativity and brainstorming.

    At Officevibe, we have the “green room” – a sort of utopic work area with hammocks and trees that inspire out-of-the-box thinking.

    Fun workplace environment lounging area for employees

    We also have a ping pong room for a kick of fun and rejuvenation between tasks.

    employee engagement in a fun workplace

  5. Engaged Employees Are More Positive

    Positivity and negativity are contagious, both in and out of the workplace.

    When you have even just one disengaged employee, their negative attitude and unhappy demeanor will penetrate the moods of the rest of the team, either elevating or bringing down the morale.

    the importance of employee engagement

    When employees are engaged and happy, the work environment becomes inspiring, creativity flows, confidence grows, and anything becomes possible.

    Inspire positivity: The best way to inject positivity into your team is to lead by example. You and your managers set the mood and tone for the day the moment they walk into work. Smile, say good morning, communicate and interact with a positive nature.
  6. Engaged Employees Are The Most Productive

    Disengaged employees are often very unproductive as they have lost interest in their day to day tasks. This affects the output and quality of work, therefore affecting customer satisfaction, retention and profits.

    One common reason for lack of productivity and disengagement is that employees do not connect with their tasks, or are uncertain of their roles and what is expected of them.

    Boost productivity on your teams: Make sure that from day one, employees are aware of what is expected of them. Clarity is extremely important. Check in with your teams often to make sure that everyone is aligned with the work they are doing, and ensure that your employees are doing what they love, because that’s what drives motivation.

Don’t forget to grab this free employee engagement checklist on your way out. The way we divide the ten metrics of employee engagement will be really helpful in understanding where you need to start.

Download the complete checklist to see if your employees are engaged.

Thanks for reading on the importance of employee engagement

Taking the time to go through this post means you really care about your workplace and its people. Keep up the great work!

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