Cost-Saving Benefits of Getting Employee Engagement Right

Engaged employees save your business money. Why? Because engaged and motivated workers have higher levels of employee satisfaction, which leads to enthusiasm in their role and overall company growth in the form of higher retention, higher productivity, increased profitability, less absenteeism and increased employee loyalty. Ensuring you have a robust employee engagement strategy is key to aligning employees with your internal business ethos and can save you a significant amount of money.

What Does Research Tell Us?

We are in the midst of a global employee engagement crisis, with just 13% of employees worldwide engaged with their jobs.

So, what does this mean exactly? When thinking about employee engagement, look to your existing staff. Your engaged employees are typically top performing employees. They’re efficient, motivated, understand their role and tackle it to the best of their ability.

It doesn’t matter if your business is a small start-up or a huge global enterprise – disengaged staff can impact your business adversely. When employee engagement is low, businesses can find that crucial deadlines are missed, and employees are either constantly off sick or resign from the business. As a result, work rates slow down, leaving engaged staff to pick up the slack and, in turn, they can become disengaged and reduce overall productivity.

In the UK, employee disengagement is costing businesses around £340 billion every single year in lost productivity. Alternatively, highly engaged employees can achieve up to 5 x more growth revenue for your business. This is because engaged employees are emotionally committed to the company, its values and its goals. They want the business to succeed. Ensuring you have your engagement strategy right means you reap the benefits of engaged employees, save money, and power your business forward.

The Benefits of an Engaged Workforce

The many business benefits of engaged employees include:

  • Increased productivity and profitability
  • Better customer service
  • Employees having a more enthusiastic outlook about their work
  • Employees feeling comfort and security within their job role
  • Engaged employees offering positive suggestions for the organisation
  • Engaged employees having a positive influence on other employees

By taking into consideration these business benefits, how do you feel your employee engagement levels are? Do you need to review your engagement measures to make sure you are getting the best out of your employees?

There are numerous ways to boost employee engagement levels without increasing your budget and having the right strategy can save you money.

How Your Engagement Strategy Can Save You Money

Employee engagement reduces recruitment costs

Higher levels of employee engagement typically increase business performance. Engaged employees stay with an organisation, while disengaged employees do not and they eventually resign.

Having an employee engagement strategy in place means you could be saving significant costs in replacing disengaged employees. Every employee that stays because they are engaged in the workplace, saves your business thousands in recruitment and training costs each year.

Employee engagement reduces sick leave

Research by Gallup shows that “companies in the top quartile of employee engagement see 37% lower absenteeism than companies in the bottom quartile of employee engagement.”

Reduced sick leave means more business productivity, which equates to higher business profit.

Employee engagement reduces compensation claims

Having an employee engagement strategy can also reduce the cost of safety incidents. The Society of Human Resource Management determined that the average cost of a safety incident for an engaged employee is $63 versus $392 for a disengaged employee.

The right employee engagement strategy can result in significant cost-saving benefits. Getting employee engagement right means greater business profits and increased productivity levels.

Get Your Employee Engagement Right

Why not learn how the MIT Employee Engagement Portal can help you deliver a world-class employee engagement strategy?

There are many factors that contribute to the productivity and profitability of any organisation. Employee engagement is not the only factor, but it is without a doubt one of the most important.

Utilise our range of business tools and expert consultancy to help you achieve outstanding employee engagement and a happier work environment, which in turn will result in higher productivity. We help you develop an engagement strategy that is unique to your business and aligned with your future growth goals.

To learn more about how you can accelerate business growth with the power of engagement here.

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