Investopedia defines employee engagement as, “a human resources (HR) concept that describes the level of enthusiasm and dedication a worker feels towards their job.” Engagement, however, isn’t always a good thing, as you’ll discover below. Engaged employees are usually more productive, and since employee productivity impacts company performance, interventions like regular engagement surveys are often necessary to diagnose issues.
The benefits of high employee engagement
Engaged employees are critical to the success of any team. MyHub lists a few benefits of employee engagement. We’re unpacking five of these below:
- Enhanced productivity
There is no doubt that engaged employees are more productive than disengaged, disgruntled ones. How much more productive? Market research firm HayGroup discovered that employees who are committed to their work, and enthusiastic about it, are 43% more productive than employees who ‘just work’ or who are unhappy in their position. - Lower staff turnover
It stands to reason that employees who are engaged and happy in their roles won’t want to leave anytime soon. Companies with high employee engagement also experience lower staff turnover on average. One study found that staff turnover rates in staff-engaged companies drop by up to 63%, depending on the industry, when compared to similar companies with low staff engagement. - Higher satisfaction
Heard of brand advocacy programmes? These take shape when employees are engaged, empowered, and happy in their roles. Engaged employees are satisfied employees, and satisfied employees are more likely to speak favourably about the company and share branded content on social media. This means that keeping employees engaged and satisfied can open up new marketing avenues. - Better creativity
It’s tough to succeed in a super competitive industry without consistently improving your products and processes. Employee engagement can be a crucial cog (or spanner) in the innovation wheel. As employees’ personal goals and passions align with that of your organisation, they will create enhanced solutions that benefit your customers and your bottom line. Engaged employees have an interest in helping the business succeed. - Increased revenue
Finally, the employee engagement benefit you hoped you’d read today. Having more engaged employees means more revenue. Watson Wyatt research firm found that companies with higher employee engagement generate 26% higher revenues on average than their counterparts. There is a causal relationship to this, meaning that employee engagement typically precedes revenue growth.
Signs of an engaged employee
- They know what their job is, what it entails, and they actually want to do it.
- They are productive and loyal to their employer.
- They want to work toward the success of the business.
- They are connected rationally and emotionally to the business.
- They are motivated to perform at a high level.
Want to improve employee engagement by 14%?
Employee engagement is critical – engaged employees are 87% more likely to stay at a company and deliver their best work. Our partner employee experience platform, WeThrive, gives you a 360-degree view of your people and how engaged they are. Powered by workplace psychologists, WeThrive gives employees and managers instant personalised feedback, action plans, tools and other resources they need to thrive. Contact Energy Alchemy to discuss how WeThrive can improve your company’s employee engagement.