How staff engagement affects your bottom line
Employee engagement has traditionally been viewed as an HR matter. However, organizations these days have adopted it as a business strategy for the simple reason that its impact on profits and productivity is undeniable.
You may be wondering what exactly employee engagement is. It’s the approach employers take to improve employees’ commitment to the company’s goals as well as ensure that they stay motivated to work towards the company’s success. The strategy also seeks to increase an employee’s sense of well-being within the organization.
Employee engagement seeps into all aspects of a company, but in this article we’re going to be taking a look at how it affects your bottom line specifically. The result of ensuring employee engagement is happy individuals who are committed, motivated, and satisfied in the workplace. That means low absenteeism and employees that are working towards increasing productivity and profits.
To have a clear picture of this, it’s important to understand how specifically employee engagement increases productivity.
1. Allowing flexible schedules breeds commitment
One way to increase employee engagement is to help them achieve a positive work-life balance. You can do this by allowing flexible work schedules so that the employees can have time for personal matters.
For instance, for an individual who lives in, say, Los Angeles, a flexible schedule would mean being able to pop into the coworking space near him when he needs to, putting in some hours of work, then leaving to take care of some non-work duties.
Not being confined to a traditional 9-5 work schedule can greatly improve employees’ focus, commitment, and productivity — and all this boils down to increased net profits.
2. Giving clear expectations and providing necessary tools increases passion
A company that seeks to drive employee engagement must set clear expectations with their employees. They have to be ready to equip workers with the necessary tools that ensure they are performing at optimal levels.
Employees who are offered the above find a reason to show up for work every day. But it’s about more than just showing up: they carry with themselves the passion, energy, and drive to continue working towards the company’s success.
With almost zero percent absenteeism, you can be sure of maximum productivity and, hence, greater profits.
3. Providing employee engagement tools drives motivation
Building a team with the right people and effectively managing them will reap exceptional benefits in terms of performance and growth. However, if you fail to motivate them, it can have severe consequences for your business.
The best way to keep them engaged is by utilizing idea management software, which lets employees share ideas and solve company issues. The ability to share ideas will give employees a feeling of autonomy and ownership. It will also make them feel important for the company and, thus, more loyal to it.
4. Recognizing employees creates a sense of purpose
Employees need to feel valued. One way to do this is by recognizing the work they do for the organization.
It’s important to give honest feedback regarding employees’ performance and offer to help them improve in areas of weaknesses. Nevertheless, you should never miss an opportunity to tell an employee how valuable his or her work is in reaching the overall goals of the organization.
Praise an outstanding employee and give valuable perks and credit where they’re due. This way, your employees will find a sense of purpose that can renew their commitment to you.
And as we’ve established, committed employees work harder to increase the company’s profits.
5. Showing empathy increases talent retention
Employees aren’t worker bees, they’re human beings complete with a wide range of emotions. They’ll have low days caused by personal problems or issues they are dealing with at home. They expect you to show them empathy at such times. Being mindful of their emotions will go a long way in showing them how valuable they are to the company.
On the other hand, employees who see their employer as empathetic are less likely to leave the company. While the effect of this to the bottom line may not be immediately obvious, it will be felt in increased talent retention and savings on training fees.
6. Being an ideal workplace increases commitment and loyalty
The modern employee has a clear idea of what an ideal workplace looks like. Included in this is a workplace that invests in employees’ general well-being.
Focusing on employees’ well-being can include:
- Encouraging regular breaks from work to avoid fatigue as well as back and neck pain. This can be achieved in part by creating comfy break areas in the office.
- This also provides an additional health benefit in that employees get to network with each other and share ideas on different issues in and out of the workplace. This helps them reduce stress and improves mental health.
- Investing in holistic wellness programs that will help employees take up healthy lifestyles and make better choices.
This can result in happy, healthy, and more productive employees. If you’re seen as an ideal workplace by your employees, you can be sure that they will stick with you. That means loyalty, commitment, and increased profits.
As we’ve seen, employee engagement is as easy as focusing on the wellness of your human capital. These are by far your most prized assets. Taking care of them will help them thrive individually and this will then be reciprocated and felt at the organizational level. Happy and engaged employees will work their hardest to increase revenue and reduce expenditure, which will undoubtedly have a positive effect on the bottom line.