[aa_subtitle_display]What is the price of poor employee engagement? As per research done by Gallup Organization, it is estimated to be between $450 – 550 billion. That is how much businesses are losing due to bad employee engagement. These statistics have made a lot of organizations sit up and take notice.
High employee engagement is critical to the success and performance of companies. The key performance outcomes that are impacted by it include:
- 65% lower turnover (low turnover organizations)
- 48% fewer safety incidents
- 41% fewer quality defect incidents
- 37% lower absenteeism
- 28% less shrinkage
- 25% lower turnover (high turnover organizations)
- 22% higher profitability
- 21% higher productivity
- 10% higher customer metrics
Effect on Bottom Line
Employee disengagement is bad news for any business but just how bad is something that is been understood nowadays. If the employee is disengaged, it can make a serious dent to the bottom line of the business. When employees are not engaged they do not get actively involved in their work and company. This results in poor productivity as the work falls below par.
When employees stop paying attention to what they are doing, they stop paying attention to customers and this can lead to a chain reaction where everyone associated with the company loses. Productivity suffers, profits plummet and everything starts going downhill. If things are not fixed at the earliest, it can have disastrous consequences for everyone involved with the business.
Employee engagement is an important aspect that all companies need to pay attention to and most business owners are aware of its importance. Despite this, the employee engagement strategies have not changed in years. So what is it that they are doing wrong?
Struck in the Past
Most businesses seem to be struck in the past as far as employee engagement strategies are concerned. The workplace has seen phenomenal changes take place over the years but there are certain things that have remained stagnant. Employee engagement is one area where things have not changed much and have remained the same.
Most companies are still relying on the tried and tested strategies of old even though they have stopped producing the desired results. Employee assistance programs, training courses, flex time and open door policies are just some of the old strategies still in use. It is not as if they are bad strategies and have not given the desired results. But the fact is that these strategies have become old and the modern workplace demands new employee engagement strategies.
What can be done to better employee engagement?
As the workplace changes and evolves, employee engagement strategies also have to change. The best thing to do is to have a clear and constructive plan that you can track. The bottom line is employees are your most valuable assets and engaging with them can help you achieve success in all aspects of your business. PEOs provide tools that cater to the modern workplace and help create strategies that can be used in companies for effective employee engagement.