5 Reasons Why Employee Engagement is Becoming More Relevant in 2018
Employee engagement has been a buzz-worthy phrase for years and it has become more relevant in 2018. Find out why below.
Businesses cannot overlook the importance of employee engagement. Higher profitability can be the most simple answer as to why it matters. The Gallup State of the American Workplace report states that better engagement leads to 21 percent better business profitability. On the other hand, disengaged employees can cost businesses around $500 billion every year.
Let’s have a quick look at some of the other major reasons why employee engagement is vital to the workplace in 2018.
1) Better Performance: Gallup poll analyzed more than 1 million employees and it was found that productivity was at its highest when employees were at their most engaged. In the end, this can do nothing but improve your business and help you to achieve your goals.
2) Improved Retention Rates: Engaged employees often stay longer with the company and perform better. Better engagement leads to lower turnover rates. This helps you to not only retain top talent but lower recruiting costs.
3) Acknowledgment = Happier Workplace: It is not always about money when it comes to employees looking for new jobs. In fact, only 12 percent of employees switch workplaces due to money concerns. One of the main reasons employees seek new employment is because they are in search of a workplace where they feel appreciated and recognized. Regular employee acknowledgement leads to a happier workplace and engaged employees.
4) Increased Loyalty: Customer loyalty increases to 200 percent or more when employees are engaged. It stands to reason how engaged employees relate to customer satisfaction and retention.
5) Expect Innovation: Employees who are engaged think more about ways to enhance their work and to not just perform the bare minimum required. Engaged employees come up with innovative ideas and new tools.
These are just some of the reasons why companies are employing an engagement strategy in 2018.