The best CEOs have recognized the importance of employee engagementFebruary 6, 2017
In Management & Organizational Performance
Why do CEOs in charge of successful companies care so much about their employees? More than simply altruism, these CEOs have identified an essential truth of business. They’ve realized that the success of their company relies on several factors that are out of their control. Whether it’s the currently economic context, competition, market, or even plain luck. But they know that there is one crucial element they can control and gain an impressive return on investment: employee engagement.
This is excellent news because the fate of your organization rests in large part on the people involved: your suppliers, clients, and especially your employees. Your payroll represents the driving force of your growth. If you are supported by a solid, qualified, and motivated team, it will be easier for you to reach your objectives.
Despite this argument, some employers still hesitate to implement solutions to promote employee engagement. This might be because they are afraid of not getting any tangible results after having invested in this approach. Let’s examine the direct benefits of an employee engagement program and demonstrate how it can impact the financial success of your organization. Here are three good reasons for making employee engagement a priority.
1. Financial gains
Did you know that employee disengagement costs $5 billion a year?
Companies that invest in employee engagement will increase their revenues. According to several Gallup studies, employees who benefit from an engagement program have helped their organization generate 2.5 times more revenues than companies who have not invested in employee engagement programs. In fact, these gains double if engagement is also applied to customer relationships.
Similarly, companies that have succeeded in stimulating employee engagement experience a 19% increase in operating revenues, according to Willis Towers Watson. In parallel, disengagement can result in a 30% loss of revenues. This gap represents a nearly 50% difference in revenue levels and can be the difference between an organization that succeeds and one that collapses in hard economic times.
2. Increased employee productivity
According to global group , implementing an employee engagement program increases their discretionary efforts by 57%. In other words, employees are more willing to go above and beyond their daily tasks. This also results in a 20% increase in their general performance.
3. Improved human capital
The way you treat your employees can also have an impact on how the public perceives your organization and your overall reputation. According to the American group National Consumers League, 27% of consumers will gauge your level of social responsibility by how you treat your staff. Moreover, 76% of consumers make their purchasing decision based on this information. Something definitely worth thinking about.
Want to measure the return on your investment for employee engagement? Consult our experts to get an assessment of your situation and your potential gains.