You Make (a Lot) Less Money by Not Keeping Employees Engaged
In my nearly two decades of working with a few dozen organisations, there are basically two kinds of companies in the world (and one is decidedly more profitable than the other): companies who view their employees as merely expenses, and companies who see their employees as their most valuable asset. Guess which one is more profitable?
You guessed it - the latter kind of company has shown to grow by leaps and bounds, with some becoming market leaders and winning multiple awards. Workers in people-centric organisations are always motivated and driven to succeed, believe in their company, have happier dispositions in life, and are always proud to belong, because the company and its leaders believed in them first.
On the other hand, organisations who view their people as mere expense items have consistently struggled with employee turnover, low morale, terrible productivity, and even poor financial health. How so?
According to research, companies who value their employees and have taken concrete steps to nurture and motivate them:
Enjoy 233% greater customer loyalty; (Aberdeen)
Achieve 26% greater year-over-year increase in annual company revenue; (Aberdeen)
Have up to 59% less employee turnover; (Gallup)
Have 21% better profitability; (Gallup) and
Have 41% less absenteeism (Gallup)
as compared to those who do not intentionally invest in their employees. If you are a business owner and your bottom-line means something to you (it probably would), then these numbers are too significant to ignore.
How then do you engage your employees?
According to this report, here are four key activities you can do to successfully engage your employees:
- Provide career paths and employee development programs.
- People are always looking for growth in their careers, and if they think they're working in a dead-end job, watch out.
- One in five employees who leave do so because they lack opportunities for career growth and development.
- Make sure that each employee is clear on what is possible for their careers in the future, in terms of role and expectations, that fit their skills and aspirations. Provide opportunities for them to be exposed to other tasks and training that is not limited to their job description.
- Have onboarding, coaching and re-training.
- As outlined in our previous article, companies that have a comprehensive employee training program enjoyed 218% more income per employee than those who don't.
- From day one onwards, companies should prepare and enable their new hires properly so that can hit maximum productivity soonest.
- Proper use of technology helps immensely here. HR software such as these automate and ensure a smooth and effective onboarding process, while training software such as TalentLMS can save up to 60% of your time.
- Use internal social networks.
- Providing opportunities for workers to collaborate with one another is essential to employee engagement, as this fosters people's inherent need to belong to a community.
- Internal social networks catalyses frequent communication and collaboration, and is a major component of employee engagement programs.
- 56% of employee engagement programs use internal social networks such as My EmployeeLife.
- Regularly survey employees.
- Employee surveys, especially online survey platforms such as this, enable employees to voice out their sentiments that is affecting their engagement within the company.
- Naturally, this gives company management accurate insights on what should be addressed to engage employees better and improve over-all productivity.
- Annual, or biannual, employee surveys will work best for companies to monitor progress in weak areas of their engagement, as well as to watch out for drops in areas of strength as well.
- What this means also is that survey results should always be acted upon. Otherwise, the surveys would be a waste of time and money. Inaction would also result in employee disengagement as they would feel that management just chose to ignore their feedback.
- According to a Huffington Post article, 52% of managers review employee survey results but did not take any action.
If you would like to know more about employee engagement programs, feel free to drop us a line. We'd be more than happy to help.
About the author:
Dondi Alentajan is the Principal Consultant for Alentajan Business Consulting and serves as a consultant for Optimum Direct, a web portal for the best HR tools and software for small business. He was recognised as a “Marketing Maverick” by Business World in 2012, and he headed the Marketing Team nominated “Best Marketing Company” by the PMA for two consecutive years (2010 & 2011). His primary work mission is to help companies and their customers be happier together.