Why is Employee Engagement Important to Company Success

Employee engagement has become one of the key factors that influence their work satisfaction and overall performance. Employees today are no longer motivated by just having a regular 9-to-5 job — they want to be deeply involved in their work and be certain that what they’re doing is meaningful. It is also important for them to feel enthusiastic about the company they work for and have common interests and aspirations with their colleagues.

According to a study of corporations with 500+ employees, 71% of managers name employee engagement as one of the crucial factors that have an impact on a company’s success. By investing in employee engagement solutions, such as Brainy HR, you will be able to increase productivity, customer satisfaction, sales, as well as retain top talents and improve their loyalty. In this article, we discuss how exactly employee engagement can benefit your business.

Increased employee loyalty

If an employee isn’t looking for a new job right now, it doesn’t mean they won’t quit if a better option comes along. Nearly one-third of those at risk for turnover are talented employees with excellent performance. They can find another job quite easily, and they know it.

However, when employees are highly engaged, they are more loyal to their current employer and are less likely to quit even if they are offered a better-paid job. Besides, companies with high employee engagement rates can significantly reduce both turnover and hiring costs.

Improved productivity and quality

According to a Gallup survey, engaged employees are 18% more productive than their less engaged colleagues. They are more likely to work eagerly and make an extra effort in their jobs, which results in greater productivity and higher quality.

Engaged employees tend to take on more responsibility for their job, which means they’re making fewer mistakes and are better motivated to achieve excellence.

Higher customer satisfaction

Since engaged employees care about their work more deeply, this attitude also extends to the company’s customers. That’s why people who are passionate about their job are often the best people to interact with your customers. They are more likely to deliver a better customer experience which results in higher customer satisfaction rates.

7 out of 10 consumers will spend 13% more money with a company that provides an excellent customer experience. Raising employee engagement can be a good way to provide a better experience for your customers and increase your average check.

Increased sales and profitability

According to a Talent Culture study, increasing investments in employee engagement by only 10% can raise profits by $2,400 per employee per year.

The latest Gallup research indicates that businesses with highly engaged employees are 23% more profitable than their counterparts.

So, when your company has some extra money for development, consider investing it in employee engagement activities. This will ensure profit growth and keep you on a steady, upward trajectory.

Final thoughts

Employees are engaged when they feel their work matters, and they are valued by the company’s management and their colleagues. When their successes are recognized, and they realize their impact at work is meaningful, it positively affects overall productivity and work quality, improves employees’ loyalty, and eventually results in higher customer satisfaction rates and increased profitability.

Measuring and growing employee engagement is much easier with specialized solutions, such as Brainy HR. This HR management system enables you to measure the level of engagement, involve your team in the decision-making process, reward employees for their hard work, and motivate them by setting individual development goals and taking part in a bonus program.