More than ever it is critical for employers to obtain peak performance from employees and to find new ways to keep productivity at the forefront.
Engaged and motivated employees typically outperform their colleagues and are usually key factors that can help drive the business towards improved performance.
Many surveys have highlighted the positive benefits obtained from engaged employees. Figures such 20% improvement in revenue and 10% improvement to the bottom line are regularly quoted over companies with low engagement levels.
A UK study by Macleod and Clarke entitled “Engaging for Success” concluded that significant competitive advantage could be achieved by initiating circumstances that support high levels of employee engagement. Some of the results are shown below.
|
Outcome |
Engaged Employees |
Disengaged employees |
|
Sick days per year |
2.69 |
6.19 |
|
Recommended company to others |
67% |
3% |
|
Had a good understanding of customer requirements |
70% |
17% |
|
Recommended their companies’ products and services |
78% |
13% |
|
Work adversely affected health |
17% |
54% |
When you consider the financial implications of the above, the cost of employee disengagement can be clearly calculated.
A critical factor in increasing engagement levels is to understand what motives and inspires employees. What drives them in their work? Understanding this allows an employer to determine work initiatives to improve engagement.
With the cost of staff turnover estimated at 150% of salary, your employees are a most precious asset. While managing an underperforming employee and finding ways to improve engagement may not seem to be a good use of a manager’s time, the cost alternatives of replacement can be far greater. Working to engage a disengaged staff member can also show employees that management care about them, which in its own way can have a positive impact on performance. An employee who feels valued and appreciated is more likely to be engaged.
Coaching, training and implementing a culture of recognition can go a long way to addressing these issues. Early detection and action fosters a greater chance of success. Don’t wait for the annual appraisal – it may be too late by then.
The Brownie Points team are experienced in employee engagement.
To learn more call us on 03 9909 7411 or email the team at info@browniepoints.com.au
