I believe that engaging with employees is one of the most important tasks for senior management, especially during these times of uncertainty. The failure to stay connected can seriously damage the relationship between employees and employers and create what I call a “negative feedback loop” that can adversely impact organizations.
Multiple studies show that engaged employees are at least 20 percent more productive than their disengaged counterparts, at least in part because they have a more profound understanding of how their work is important to the organization. This“disconnection problem” may be responsible for as much as $500 billion of lost productivity each year.
According to a State of Employee Engagement Report, strongly engaged workforces are more than twice as likely to accomplish top financial results in their respective markets. The report suggests a strong positive correlation between employee engagement and business performance. Businesses that work on engaging with their employees are reported to have 22 percent higher revenue than other businesses in their sector.
Better Customer Service
Customer service and employee engagement are directly linked. Employees are the front line of your business. They interact with your customers on a daily basis. Disengaged employees may find it more difficult to convey your organization’s intended message and vision. An engaged employee, on the other hand, will often go the extra mile to make sure your customers are highly satisfied.
Higher Retention Rate
Retaining an employee is significantly less costly than hiring a new employee. In fact, studies show that it costs a business six to nine months’ worth of salary for every new employee hired. Based on an Employee Engagement and Modern Workplace Report, more than 60 percent of disengaged employees are actively looking for new work. This high turnover rate is expensive and disruptive.