Why Employee Engagement is Fundamental to Business Success

Given that employees that feel engaged have a deeper sense of belonging, purpose and commitment to their roles and the organisation they work for, and they are naturally and organically more aligned to the organisation’s goals and purpose, it’s no wonder that employee engagement is fundamental to business success.

However, the level of employee engagement can be influenced by various factors including leadership style and approach, the workplace culture, the working environment, whether opportunities for growth and development exist and whether employees are encouraged to develop and seize opportunities, and whether employees feel they are appreciated and receive recognition and possibly reward for their achievements and efforts.

It therefore seems logical and makes sense that the cost of getting it wrong can directly impact the profitability and success of the organisation. In this blog we talk about what we mean by ‘employee engagement’ and why it is important, but we also give you our top five tips for effectively engaging your employees so you too can realise the benefits of an engaged and committed workforce within your business.

What is Employee Engagement and Why is it Important?

Employee engagement is a psychological state and refers to the nature of the relationship between an employee and their employer, some might refer to it as the psychological contract between both parties. It refers to the sense of belonging and value an employee feels and the emotional commitment, level of dedication and enthusiasm employees have to their organisation, its goals and performance. In fact, it takes me right back to my degree studying days when we looked at the Boxall and Purcell Black Box AMO Theory, which is a framework based on the idea that employees perform better when they are able to (Ability), which happens when they possess the motivation to do so (Motivation) and when their work environment provides the necessary support (Opportunity).

There is a direct correlation between employee engagement and employee commitment, productivity and retention. A recent report survey by Gartner showed that engaged employees are likely to contribute 15% more than non-engaged employees. They are also 31% more likely to stay and go above and beyond the call of duty.

Business Benefits

There are many business benefits of employee engagement including:

Increased Productivity – Engaged employees are more efficient and effective in their roles. They are driven by a sense of purpose and are committed to achieving their goals. This heightened motivation leads to higher output. Engaged employees are willing to go the extra mile, often resulting in increased production levels. They take pride in their work, which leads to fewer errors and higher quality of work. Engaged employees are also likely to manage their time better and are more focused on their work, thus reducing downtime.
Reduced Employee Turnover – High engagement alongside great and transparent employer to employee communication significantly reduces employee turnover, which in turn saves the business substantial costs associated with hiring and training new staff. Engaged employees are also less likely to seek employment elsewhere, allowing the company to retain its top performers. Lower turnover means fewer expenses related to recruiting, onboarding, and training new employees. Consistent staffing levels contribute to a stable work environment, which can enhance overall team performance and create a workplace where people want to join and stay for the long haul.
Better Customer/Client Experience – Engaged employees tend to provide superior customer/client service, which enhances customer/client satisfaction and loyalty. This results in improved customer/client experience. Engaged employees are more attentive and responsive to customer needs, leading to positive interactions. The business benefits greatly as satisfied customers are more likely to return and recommend the business to others, driving repeat business and referrals. High levels of customer satisfaction contribute to a stronger, more favourable brand reputation and loyalty. If you look after your people, they will look after your customers/clients/business.
Increased Creative Thinking and Innovation – Engaged employees are more likely to contribute new ideas and solutions, fostering a culture of innovation within the organisation. They are more willing to think outside of the box and propose creative solutions to problems and challenges. They are proactive in identifying areas for improvement and implementing innovative practices and they feel that they can raise ideas, suggestions and solutions without feeling uncomfortable or that they are overstepping their pay grade/boundaries.

If employers want to realise these benefits it is important for employers to engage with their workforce to understand what is important to them. Acting on the feedback received from the workforce will not only demonstrate your commitment to engaging with your employees but also show that you are open to their suggestions and value their input.

Five Top Tips for Effectively Engaging Your Employees

Here are our five top tips for effectively engaging your employees so you can start to benefit from the many positives that can come from fostering an engaged workforce:

1. Open and Frequent Communication

Open and transparent communication between management and employees is essential to employee engagement. Encouraging communication around key business priorities and objectives as well topics of importance to the workforce will enable your employees to understand the business better. It will also give them the assurance that management cares about them and are interested in listening to their voice. Management can use regular meetings and feedback sessions to address concerns and share company updates. It is also important that employees have clear roles and responsibilities but that they understand their purpose in the business and where they/their role fits into the bigger organisational picture/goals.

2. Provide Growth Opportunities

Offering a clear career pathway and opportunities for development is a great way to engage your employees. If employees are aware of professional development programmes and training available to them, they will be able to take advantage of these to further develop their careers. Where vacancies arise, explore the options to promote from within the organisation. This will give your employees the confidence that they can develop and grow with the organisation. Offer opportunities for discussing career aspirations and mentoring and support for your employees. This doesn’t just have to be sending employees on training courses, there are so many ways employees can take part in activities that help their continued professional development.

Personal Development - Employee Engagement

3. Rewards and Recognition

Transparency around your reward and recognition strategy helps employees to understand exactly how their efforts and achievements will be recognised and rewarded. These can be both monetary and non-monetary rewards and recognition which may include bonuses, certificates of achievements, and additional time off. Sometimes acknowledgement, praise, knowing they are valued and doing a good job and a simple ‘thank you’ will go a long way.

4. Positive Workplace Culture

Create an inclusive environment where employees feel valued, welcomed and respected. A culture where employees can positively contribute to the organisation. Where they develop an interest and a commitment to the organisation and take steps to go above and beyond the call of duty to ensure the success of the organisation.

Encourage team building activities and social events to strengthen relationships between management and employees and between team members, but also between teams. This will help develop stronger working relationships and create a better working environment whilst reducing silos and protectionism.

5. Promote Work-Life Balance

Support your employees in managing their workload better. A better work-life balance will help your employees to avoid burnout. Offering flexible working arrangements such as hybrid working, flexible hours or remote working can help improve work-life balance for employees. With a better work-life balance, employee engagement levels are likely to be higher.

If you would like help with putting a plan together to increase employee engagement in your business or creating an engagement survey to see what is important to your employees right now, then get in touch, Metro HR would be happy to help.

Sources:

Harvard Business Review: “The Impact of Employee Engagement on Performance”
Gallup: State of the Global Workplace Report
Forbes: The New Rules For Increasing Engagement At Work

Why Employee Engagement is Fundamental to Business SuccessTips to Create a More Engaged Workplace