The Impact of Employee Engagement

September 3rd, 2013

Employee engagement is a current buzz phrase in management circles and rightly so because its impact is critical to business success. However, it’s not just about job satisfaction, it’s about employee commitment to the company bottom line. Engagement is also about valuing the employee.

What is it?

Towers Perrin’s global study of 90,000 employees in 18 countries defines engagement as “employees’ willingness and ability to contribute to company success.” Job engagement can also be defined as the measure of an employee’s positive or negative connection to their job, supervisors and peers.

Why employee engagement matters

Disengaged employees are employees who are not actively supporting the company bottom line, and these are the most likely to leave. The Society for Human Resources Management estimates that it “costs $3,500.00 to replace one $8.00 per hour employee, and the higher the wage the higher the turnover cost.” A recent Gallup study on the State of the American Workplace estimates that disengagement costs U.S. businesses $450 billion to $550 billion a year.”

Employees who are engaged are committed, and that’s a huge factor in a company success. Dale Carnegie Training maps out this simple road map of why employee engagement matters.

  • Engaged employees are committed.
  • Committed employees work toward company success.
  • This leads to customer engagement.
  • This leads to increased sales and profit.
  • And leads to increased stock prices.

Employee engagement solutions

Kevin Kruse, Employee Engagement for Everyone, lists these four primary drivers between management and employees to achieve engagement.

  1. Communication
  2. Growth and Development
  3. Recognition and Appreciation
  4. Trust and Confidence

But engagement isn’t just the role of the employer. Every employee has an obligation to find personal drivers to engagement and happiness at work. Be willing to ask yourself what isn’t working. What do I need to make this job work? Communicate with your supervisor and find workable solutions.

Alexander Kjerulf, a leading expert on happiness at work, lists the many benefits of being happy at work. Happy people work better with others, and are more creative. Happy people fix problems instead of complaining about them, have more energy, and are more optimistic and optimistic. They are sick less often, learn faster and make fewer mistakes.

The National Business Research Institute (NBRI) paints a clear picture of this business concept in this infographic: The Importance of Employee Engagement.

Don’t let employee engagement be a buzzword phrase that slides right by you.

Employee engagement is the key to productivity and retention that very much affects your company’s future.

Contact Olympic Staffing to discuss this topic and others. If you’re searching for ways to decrease costs and increase productivity, we can provide you with a detailed analysis and solution for your workforce needs.