WHY IS EMPLOYEE ENGAGEMENT SO IMPORTANT?

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Well, let’s look at what some experts and studies have to say on the subject.

“These latest findings indicate that 70% of American workers are ‘not engaged’ or ‘actively disengaged’ and are emotionally disconnected from their workplaces and less likely to be productive.”

Seventy percent is a BIG number. That’s a lot of disengaged people. I know what you’re thinking though: “I’m a good business owner. I have a great Team, we’re like a family. My employees are plenty engaged!” Well, at the risk of raining on that parade, our consultants have interviewed team after team and NOT ONE team has been 100% engaged. Sad, but true.

“Gallup estimates that these actively disengaged employees cost U.S.(businesses) between $450 billion to $550 billion each year in lost productivity. They are more likely to steal from their companies, negatively influence their coworkers, miss workdays, and drive customers away.”

Disengaged employees range in intensity. The actively disengaged employee is a powerful virus which can have a VERY large impact on a small business. Even mildly disengaged employees in a small organization can have a LARGE impact. Think about this: If your company has 20 employees and 4 are disengaged and 1 is actively disengaged, then 25% of your entire organization is likely to be exhibiting behavior which is costing you money. The more these team members control the “customer facing” component of your business, the higher the impact on your bottom line.

“High employee engagement is actually critical to a company’s performance and, according to Gallup, it impacts nine key performance outcomes in these ways:”

* 37% lower absenteeism
* 25% lower turnover (in high-turnover organizations)
* 65% lower turnover (in low-turnover organizations)
* 28% less shrinkage
* 48% fewer safety incidents
* 41% fewer patient safety incidents
* 41% fewer quality incidents (defects)
* 10% higher customer metrics
* 21% higher productivity
* 22% higher profitability

The above list shows VERY clearly the measured positive impact of strong employee engagement. Just run those percentages, one by one, on YOUR mental profit and loss report. Disengaged employees cost money, but engaged employees are a HUGE and valuable asset.

” …it is surprising that 75% of organizations have no engagement plan or strategy, although 90% say engagement impacts business success.”

This statistic should scare you. What it’s telling us is that only 1 in 4 organizations have any engagement plan or strategy. This despite 9 of 10 organizations reporting that they know there’s a relationship between engagement and success.
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