Why Is Employee Engagement Important To A Company's Success?
What defines business success? A few core tenets hold true, like a clear business strategy, defined goals, adaptivity and versatility, and more. All that’s great, but at the end of the day, no matter what industry you’re in, your business is only as strong as its employees. It’s your engaged employees who are the key to a successful business. They bring your business strategy and goals to fruition. So, why is employee engagement important to a company's success?
Although not a silver bullet, engagement at a workplace can have some phenomenal effects on business.
Every manager wants to lead employees who are committed and connected to their work. In other words, a team of engaged employees. If you feel the same, read on to learn more about this whole employee engagement schtick.
What Is Employee Engagement?
Employee engagement is getting up in the morning thinking, “Great, I’m going to work. I have my plan for the day chalked out, and I’ve got some excellent ideas about how to do it really well.” What does this denote? Those employees are enthusiastic and fully absorbed in their work and willing to do what it takes to further the business’s interests and reputation. And this is employee engagement.
Before diving into why is employee engagement important to a company's success, let’s make it clear that no matter if another company has similar organizational values, is in the same industry, or has the corresponding leadership practices, creating an environment that helps employees feel engaged looks different in every organization.
Employee experience and employee satisfaction improve as a result of increased employee engagement.
Why Is Employee Engagement Important To Company's Success?
Did you know that high levels of employee engagement in the workforce increase business profitability by 21%? Pretty mind-boggling, right!? Well, it's true.
In an engaging work environment, employees are emotionally invested in the company, they go above and beyond what’s needed to produce their best work every day and hence, deliver higher profits. Recognition is the most important motivator for 37% of employees! Let’s piece together why is employee engagement important to a company's success.
1. Engaged employees boost productivity:
Engagement is a symptom of success. Engaged employees have an inclination to get things done because they’re happy to come to work each day. They like what they do, and believe in the value they provide to the organization. Makes sense, right?
And when levels of employee engagement are high, employees aren’t merely ‘just doing the work,’ they’re creating products and services, driving innovation, chasing new revenue streams, and propelling their company mission toward financial success. The overall productivity in a workplace increases by 20 to 25 percent when employees are engaged. In short, it’s good for everyone involved.
2. Improved employer loyalty:
Focusing on improved employee engagement in the work environment helps make sure employers stick around longer, leading to higher retention rates and lower turnover costs. According to Forbes, organizations with high engagement rates experience a 41% decrease in absenteeism and a 59% reduction in employee turnover.
Disengaged employees show lower interest and engagement, which causes them to jump ship quickly, and often. Encourage employees to stay and reduce employee turnover by improving the levels of employee engagement. This way, they’ll be more committed and invested to stay, care about the company, team members, and their work.
3. Better customer experience and satisfaction:
‘Customer is king;’ albeit an old saying, it still holds relevance. Most businesses rely on maintaining and growing clients or customers. And client/customer service is a crucial facet of any successful business. It goes hand-in-hand with employee engagement.
Naturally, engaged employees are disposed to care about customers, go the extra mile and deliver a better customer experience. Their passion is infectious and customers will take notice. This is great for customer satisfaction, customer referrals, upsells, and retaining customers. Overall, organizations with an engaged workforce are more likely to have 10% higher customer ratings than those with disengaged employees.
4. Reduces turnover and increases employee retention:
There’s a close link between retention and the importance of employee engagement. An employee who loves their job is involved and invested in their roles and are less likely to leave. Engagement helps keep employees emotionally connected to their work, satisfied and inspired.
What does investing in employee engagement mean? For starters, it means motivated staff who share company values, better adoption of company initiatives, brand advocates who promote the business on social media, through word of mouth and help extend marketing reach, and enhance company culture.
5. Better health, happiness, satisfaction, and safety:
If you didn’t know already, the benefits of employee engagement extend to the health, happiness, safety, and satisfaction of staff. The chances of an engaged employee suffering from injuries or chronic injuries are far less.
An organization that prioritizes engagement displays respect for employees’ needs and offers them the space and time to live healthier lives. This encompasses sufficient time for lunch breaks, increased time for rest, reducing stress at the workplace, and offering added benefits and wellness sessions in their group health insurance policy.
A suitable group health insurance plan guarantees a well-rested employee. And this translates to less stress, happiness, satisfaction, more productivity, and focus. As a result, employees are excited to come to work, fewer accidents occur at the time of work, inspired to collaborate with other team members, and more confident to share ideas.
To add to the above, engaged employees are even happier in their lives at home. How? Besides dedicated time for work, they get sufficient time to cater to their personal lives.
Employee engagement is like a domino effect, where employees are happier at home and come to work less stressed. In a hybrid work setting, the effects of this are multiplied as work life and home life often intersect.
A quick summation - Organizations shouldn’t overlook the benefits of employee engagement. When employees are passionate about their work, it reflects in the outcomes; it helps increase productivity, reduce staff turnover, improve employee retention, make employees happier and healthier, create a better work culture, enhance customer relationships, and positively impact the profit of a company.
How to Engage Your Employees?
In today’s transforming environment, it takes some outside-of-the-cubicle thinking to make a workplace stand out. Here’s where health benefits and wellness programs come into play. Health benefits and wellness programs help employees remain engaged at work, both mentally and physically.
Employer health insurance is extremely versatile. Over and above assistance during medical emergencies, providing customized cover for organizations, focusing on preventive care over proactive care, covering expenses of hospitalization, and even covering pre-existing diseases without a long-term waiting period, plans also offer added health benefits and wellness programs.
1. Fitness activities and nutrition - Staying fit helps steer clear of lifestyle and chronic diseases. What better way to do so than enrolling in engaging fitness sessions that you can enjoy anywhere! Combine fitness with eating healthy, clean and it’s a wholesome routine to follow with no worries or additional stress.
2. Mental health programs - A person’s overall health is determined by both their mental and physical health. And especially after the pandemic and work-from-home scenario, it’s necessary to have proper mental health guidance. The mental health sessions are designed to cater to individualistic needs and help in everyday life. The effect of this translates to the workplace and home.
Build A Better Workplace With Engaged Employees:
When you’re chalking out an action plan for employee engagement, remember the recipe for success varies from business to business. Take your time to analyze the unique requirements of your business and then proceed to tailor a strategy that’s suitable. It’s certainly worth it!
By offering all-inclusive group health insurance that provides much more than mere insurance for employees, you build loyalty and trust. Loop’s health plans ensure the holistic overall well-being of your employees. From booking virtual consults with doctors to discounts on lab tests to engaging fitness sessions, dental and vision cover, the plans ensure all-around coverage at affordable prices.
At the end of the day, employer insurance contributes to engagement, which results in better productivity, lower absenteeism, lower attrition rate, better teamwork, etc. This makes the work environment profitable and fortifies an organization's bottom line.
Contact Loop Health if your organization is looking for an easy-to-use, robust platform that provides an all-embracing group health policy coupled with added benefits.