Many companies, or CEOS, talk about how important their employees are to their success. Many companies value their employees, but when you look at how their leaders interact with them, you’ll see that they need to do an excellent job managing them.
Unfortunately, many companies only pay lip service to their employees’ engagement. While it’s nice to hear leaders talk about their staff’s importance, what’s being done in practice is different. For instance, in most companies, profits are first, followed by customers and employees.
There has been a steady decline in employee engagement measures in the US over the years.
In addition to being short-sighted, companies tend to focus on their bottom line instead of their employees’ engagement. Here are some reasons why focusing on your staff can help boost your company’s profitability.
- Higher Staff Retention
A study by the Hay Group revealed that highly engaged workers are 87 percent less likely than their less engaged counterparts to leave their jobs. Turnover can harm your business and add to your costs by training and recruiting new employees. Depending on the role, these issues can range from 16 percent to over 200 percent of your salary.
- Increase In Productivity
Highly engaged workers are known to be productive individuals. They believe their work is essential, and they’re motivated to work harder to reach their goals. According to a study conducted by the Gallup organization, employees who are engaged perform better than those who are not.
- Increase in Profits
In 2008, a study by Towers Perrin revealed that companies that employ highly engaged workers could increase their operating income by 19 percent during a year. On the other hand, those that use less engaged workers experienced a 33 percent decrease in profitability. The difference is that the profitability of companies that employ highly engaged workers is 51 percent higher than those that don’t.
- Better Company Reputation
Your staff members are your company’s ambassadors, and what they say about you can considerably impact how others perceive your organization. Happy and highly-rated staff members can help boost the reputation of your company, as well as attract more potential customers.
- Customer Satisfaction
According to Richard Branson, “clients do not come first, and employees come first.” In 2016, a study conducted by Temkin revealed that organizations that excel at customer service have more engaged staff members than those with poor customer experiences. This means that if you want to attract and retain more satisfied customers, you need to increase the number of highly engaged individuals in your organization.