What is Employee Engagement and why it matters for your Company?

By Tarun kumar | Last Updated : April 20, 2022

Employee engagement is about increasing the work quality, satisfaction, productivity, and profitability of the employees. It also helps to retain the best talent. This is the reason why more and more companies are investing their valuable time and money to enhance their workplace culture.

In this blog post, we will discuss about Employee engagement and why it is important for your company?

What is employee engagement ?

Employee engagement is a level of enthusiasm and dedication that employees feel towards their role and employer. It is about enhancing the workplace and culture so that employees feel motivated committed and connected to the organization’s goals and structure. It is based on integrity, trust, and communication between the employer and its team members.

An engaged employee considers his job more than a mere paycheck. He is keen to take on responsibilities and carry out duties far beyond his job description. She/he carries a positive attitude towards their employer and plays a vital role in the organization’s overall employee retention and satisfaction. On the contrary, a disengaged employee is a considerate factor in lower productivity, high employee turnover, and a negative employer reputation – in a worst-case scenario.

Why does employee engagement matter for your business?

As per a report by Businessolver in the year 2021, 70 percent of the employees feel that employee engagement at workplace results in higher productivity and better business outcomes. Even so, the decision made incorporated is informed by data and tangible results.Every aspect, even employee engagement should be tied to a meaningful and positive business impact.

Businesses that consider employee engagement as a business strategy tend to yield better organic results.

We have framed 5 solid benefits of employee engagement for your business:

1. Employee engagement reduces Absenteeism :

Absenteeism is expensive for an organization and can run out of control if not addressed. It not only affects individuals but is also considered as a management problem. Engaged employees are interested in their job and care about the success of their projects. They won’t take a day off for no reason or without the consent of their reporting authority. They trust their employers and believe that they’ll be given the time off when it will be required.

Absenteeism appears when the employee is not satisfied or feels indifferent to the authority or team. This is the reason why they take advantage of certain situations and take leaves without much consideration. Non-motivated and disengaged employees are more likely to miss the days and less like to be involved while present. But, if your team shows up every day and is motivated, excited, and engaged, it becomes easier to perform and achieve goals.

According to a study, it is believed that improvement in employee engagement can bring down the absenteeism level to up to 41 percent. Imagine the kind of result an employer can achieve by improving the overall experience in your company.

2. Employee engagement improves employee retention and lower turnover rates :

As an employer, if you want to build a strong team, you need team members who can stick around. It becomes hard for the teams to perform to the optimum when important employees are constantly cycling in and out of the company. If your capable and long-term standing employee leaves, it takes the expertise and valuable knowledge with him. Moreover, training new employees takes a significant investment in time, energy, and resources.

Disinterest and low engagement cause employees to leave jobs, quickly and often. And if you think that your employees are not looking to quit, doesn’t mean they won’t accept a better offer. By focusing on employer engagement, you can have a stronger and longer employee association. Due to this, your employee retention rate would be high, ultimately reducing the employee turnover cost.

3. Employee engagement enhances productivity :

Highly engaged employees are more efficient and tend to work harder because they like their job and believe in their value to the organization. They are well aligned to the business goals and are accountable for their contributions to their respective teams.

According to a report conducted by McKinsey & Company, Employee engagement increases the productivity of the employee by 20-25 percent. However, this is quickly lost, if your employees are stressed, manipulated, and overworked.

4. Employee Engagement increases customer satisfaction

According to a study conducted by Gallup, businesses with engaged professionals experienced a 10% increase in customer ratings and a 20% increase in sales. What’s the Reason? Engaged employees believe in their company, value the product, and are zealous about working for their employer.

Customer’s buying decisions are influenced by the engaged employee’s zeal, enthusiasm, and attitude. Engaged employees create a positive customer experience making them feel valued and respected. The same equation works between the employer and employee.

As Stephen R. Covey, quoted – “Always treat your employees exactly as you want them to treat your best customers.”

Another study conducted by National Business Research Institute found that customers use the products and services more frequently and are more satisfied with engaged employees than the customers of companies with disengaged employees.

5. Engaged employees boosts employer’s brand image

Engages employees can assist your talent strategy in more ways than merely shrinking the turnover. As per a survey in 2021, more than 85 percent of job aspirants consider the company’s culture as an important factor in choosing a role. With increased employee engagement, you will have a positive impact on your organization’s culture. You will make your organization more attractive to the job applicants during the recruitment phase.

When your employee feels informed and connected to their work and with each other. They are more likely to become the brand ambassadors for your organization. Employees are the most revered voice for your organization and the products or services. The word to mouth marketing can shape your employer’s brand and draw in new candidates to work for your organization.

Over to You!

Enabling employees to learn new skills is one of the top strategies for finding and retaining the best talent. This means broadening the criteria you look for in potential candidates and then offering them opportunities to continue learning throughout their time working for your organization.

It does make sense that enabling employees to learn and grow through experiences both inside and outside your company will give them more drive and passion for their jobs. This will lead to increased engagement and higher retention rates in the long run.

If you are looking for a program that has been well-crafted to suit the needs of your employees, reach out to UniKaksha. We would be glad to help you out with a plan that serves your needs the best because your organization deserves it.

About the Author

sonali trehon
Sonali Trehon
Blog Author

Sonali is an accomplished Author, Content Writer, Copywriter, and Ghostwriter, known for her ability to create engaging and captivating communications. With over 11 years of experience, she has developed a diverse industry background in Education, Travel, Retail, Events, and Fashion . Quality over quantity is what she firmly believes in. At UniKakhsa, she leads a team of talented technical writers, dedicated to delivering valuable content to readers through our blogs.

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