We’ve gone into detail in a previous blog about what employee engagement is (and isn’t), how to know if your employees are engaged and why it differs to employee experience. If you haven’t already read it, or you’re not sure what employee engagement really is, you might want to go back and catch up, because today we’re going one step further: we’re looking at why it should be part of your business strategy.
We’re not talking about an add-on or an afterthought, rather an integral part of your business and its culture.
Let’s dive straight in.
Employees are at the heart of every business
Employees are the beating heart of businesses. They make everything run smoothly, they keep customers happy and, ultimately, they keep the money coming in. Imagine a supermarket with no workers or a haulage company with no delivery drivers. It doesn’t work, does it?
Morally, we have an obligation to look after our employees and meet their needs. Employee engagement goes beyond that, bringing big benefits to a company, in a variety of ways.
Benefits of employee engagement
Happy employees = happy customers
Engaging employees makes business sense. That’s because employees who feel connected to their role are more likely to provide better customer service – and happy customers will come back. Engaged employees improve customer satisfaction by:
Providing superior customer service
Valuing customers and their experience
Contributing to a positive brand reputation
In both product and service-based businesses, retaining customers plays a crucial part in maintaining a steady revenue stream. A survey found that it costs five times more to acquire a new customer than to retain an existing one.
Engaged employees deliver better results
If you’ve ever worked on a project you feel really invested in, you’ll know that working hard comes easily when you’re engaged. 2019 research found that staff who felt their voices were heard, were 4.6 times more likely to produce their best work.
Engagement leads to all the things we like to see within our teams– communication, teamwork, productivity and a positive approach to the role.
Productivity leads to profitability, with more time spent on the things that matter. Companies with high levels of engagement are 21% more profitable.
Increased employee retention
If you’re ticking all the boxes in terms of employee engagement and experience, your staff are much more likely to want to stay. The benefits of this are clear:
You don’t need to replace them
Your employees know their roles – according to Australian research, it takes 1 to 2 years for new employees to be fully productive
Increased team morale due to lack of disruption
Replacing employees also has a financial impact. Like custom acquirement, employee acquirement is costly. Research by Glassdoor found that the average cost of hiring a new employee in the UK is £3,000, as well as 27.5 days' worth of time.
How employee engagement has changed since the COVID-19 pandemic
2020 has been the year of the pandemic, affecting everything – including employee engagement. More people are working remotely than ever before, which increases the chance of disconnection between teams.
The situation is unlikely to change anytime soon and, even when it does, it looks as though remote working is here to stay. That means it’s time to review and refresh your employee engagement strategy to include new ways of working and incorporate digital solutions.
If you want to stay connected with your employees, talk to us about a bespoke survey solution: