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  • Matt Kaler

Why Employee Engagement Equals Better Business

Four people in suits holding papers over their faces with smiley faces printed on them.

How do we define "employee engagement"? It's the drive and loyalty anyone in an organization brings to work. Sure, Mondays are sometimes tricky, but creating an environment where employees feel committed to the company should be a top priority. Why, then, is this so rare? One Gallup poll puts employee engagement in the U.S. at just over 30%. The percentage drops into the twenties for millennials. Sure, a system-based initiative takes time to implement, even across a small business. But that effort is worthwhile.

If you'd like to see more employees smiling and motivated, then consider the following tips.

Provide Clarity of Job Duties

Starting with onboarding, an employee who knows their responsibilities and role is less likely to become frustrated. A new job arrives with information overload, and confusion sets in. What you want to avoid is adding to this confusion. If you approach onboarding as a real process -- one SHRM report encourages training as "a strategic process [that lasts] one year" -- then the front-loaded effort can help create a culture employees want to stay in and thrive.

Listen to Employees

Feeling voiceless is universally frustrating. By using customer feedback systems like VoiceSifter, a business can acknowledge employees even in a distributed workforce. Once a conversation is started, and a team member feels heard, then great possibilities emerge. Maybe the next idea for an employee development program, one that people actively want to take part in, comes from just such a dialogue.

Listen to Employees

That millennial group in the 20% range of engagement? According to a study, the majority want accountability. KPIs and manager feedback on performance can boost productivity and, in turn, employee happiness. A happier employee is then more loyal.

Okay, but what are the financial impacts of employee engagement?

Here’s three:

Less Employee Turnover Means Less Expense

This one is familiar to business owners, managers, and those in HR. A higher employee turnover percentage results in more associated hiring costs (as well as time spend). Engaged employees are more likely to stay.

Operational Efficiency Mitigates Mistakes

We all experience tough times that affect cognitive function. Lack of sleep, a personal loss, or an illness causes us to miss details -- this holds for employees who aren't engaged at work and is magnified over time. Regardless of the role, an employee who cares is less likely to make errors that drag on operations' efficiency.

Productivity Equals Profit

On the flip side, now picture an organization where the employees arrive to work happy and inspired. That reliability means better production. And improved production, especially in an environment where team members support each other, boosts profits.

Happier people produce a healthier business. So take on that national average of roughly 30% engagement and use these tips to help your employees find their passion for work and push that number into the 90% range. We've seen it done, and the outcome is evident in a lot of smiles.


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