[aa_subtitle_display]While most companies see a clear need to improve employee engagement, they have still not developed ways to do so. A disengaged workforce can have a negative impact on the overall business performance.

The impact is not just financial and most organizations have started understanding this. They have started leveraging engagement initiatives to improve performance.

Why do companies need to invest in employee engagement?

The fact is employee engagement is important for any type of business outcome. The past few years have seen organizations monitor the engagement levels at the workplace as business leaders view it as most critical for their success.


When employees disengage, the most visible fallout is drop in productivity. When people are engaged with their jobs they are more productive. High engagement levels also create low absenteeism and higher morale and motivation.

When employees are motivated they work to the best of their capacity.


Employee safety is another thing that gets affected by employee engagement levels. Disengaged workers focus less on their work and this can affect their “health and safety”. This can have serious consequences for businesses that are engaged in manufacturing processes.

Employees that are not engaged not just put their lives in danger but that of team members too.

Research has proven that 70% of accidents that happen at manufacturing units are caused by careless workers. The financial cost of a safety incident can be enormous. This can also have a negative impact on productivity, team spirit, customer performance and product quality.


Disengaged employees are not likely to work for the organization and may be looking at opportunities to leave at the earliest. Companies spend a lot of time and money on training, and when they are not able to retain their employees they suffer the consequences.

It is expensive to hire and train new employees and can cause a severe financial strain on the company.

As per a survey, engaged employees are 87% less likely to leave an organization. High employee retention percentage impacts employee motivation, morale and trust. Companies that are able to retain their employees reap the benefits of increased productivity.

Customer Loyalty

If businesses truly want to succeed they need to connect with their customers. Customers recommend your business to others if they feel positivity towards it and can become your brand ambassadors. Engaged workplaces have 12% higher customer ratings.

When employees are disengaged they do not provide the best service to customers and this can have a serious impact on your business. Customers prefer dealing with organizations that value them.

Customer loyalty does not take long to shift and you may lose all your customers to your competitors within no time.

One of the ways that PEOs can help managers to improve employee engagement is to provide clarity. Employees need to know what is expected of them at the workplace. A good way to improve clarity is goal setting.

When people know what needs to be achieved they may be able to work better in achieving it. PEO programs can help define goals and increase productivity.

Sharing is caring
Social Proof Apps