High levels of employee engagement are essential for a healthy and harmonious company, not to mention their effect on your business's bottom line.
Employee engagement influences organisational productivity, staff turnover, performance, the use of sick leave and more. These factors all have the potential to affect your company's finances, as a disengaged staff member is not likely to produce the same results as an engaged one.
Disengaged employees are also a lot more likely to leave the company and this is likely to be costly. When you take into account advertising for a new position, conducting interviews and training a new person for the role, your company has spent a lot of money hiring someone who, if he or she also becomes disengaged, may also leave and cause the process to begin again!
You can help to prevent this from happening by establishing a regular dialogue with your members of staff, identifying areas for improvement at the earliest opportunity and acting upon these.
Numerous studies have established the link between staff engagement and superior financial performance.
Hewitt Research, for example, looked at employee engagement in companies with double-digit growth:
· 60 to 70 per cent of engaged employees' average total shareholder’s return (TSR) stood at 24.2 per cent.
· With 49 to 60 per cent of their employees engaged, TSR fell to 9.1 per cent.
· Companies with engagement below 25% suffered negative TSR.
It’s clear that investing in the measurement of employee engagement is a great first step to establishing a high performing organisation and potentially enjoying the benefits of happier, more productive staff who will give more to your business.
Would you like to see how an Australian-built employee engagement tool can help you? Try a free custom-branded demonstration of PeoplePulse.
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