In a recent survey by KPMG, respondents reported Employee Engagement and Customer Confidence as the second and third most important challenges behind the Economic Environment, as the world moves forward post Covid.
When you add ageing workforces, multi-generational and multi ethnicity staff, skills shortages, changing demands of employees, remote working and mental health, as well as calls for more social purpose and responsibility, employers today, more than ever before, need to respond to these key business drivers in order to maximise their business opportunity.
Invariably the same issue rises to the top of the pile – employee engagement. This seems to be the number one challenge for HR managers in companies large and small all over the world.
With Human Resources managers striving to gain a seat on the Board or the Executive Committee, it is vital that HR strategy is in alignment with the corporate vision and strategy.
Employees are your corporate brand. Without them you have no unique competitive advantage, and so improving employee engagement, which can lead to improved retention, reduced absenteeism, increased productivity and greater customer satisfaction, is critical to your corporate performance.
With leading professional services consulting companies such as Mercer Consulting and Gallup calculating that to replace an employee can cost as much as 150% of salary, a staff retention strategy is critical to maximise staff performance which can deliver huge benefits.
During a recent (remote) meeting with a senior hospitality HR manger, we discussed a key issue connected to employee engagement – unplanned absence and staff retention and the impact on the business. In this particular business, this was a significant challenge, but this is an issue for most businesses.
When we discussed the challenges in detail, we agreed that unplanned absences can have a major impact on a business and are a concern for many HR managers, as well as being a drain on resources, and they create significant problems for the business. The key issues identified around unplanned absence and staff turnover were:
• Lost productivity (and revenue) if no one can cover the work
• Increased costs – you may need agency staff
• Reduced efficiency (and revenue) if staff cover is not found
• Lower levels of customer service as personnel are stretched
• Reduced employee morale as the staff pick up the slack
When you also consider employee turnover, the real impact on a business starts to add up, and it could be costing you tens or hundreds of thousands of dollars per year if your employee absenteeism and staff turnover is high.
Lowering your unplanned staff absenteeism and turnover has a major positive impact on your bottom line through:
• Improved productivity and morale
• Lower recruitment costs – both time and money
• Reduced on boarding and training time and costs
• Retention of expertise – losing expertise can impact morale and customer experience
By placing employee engagement at or near the top of your list of priorities, HR managers can align their engagement strategy with the overall corporate vision to make a real difference to the bottom line.
We believe that your employees are your most precious resource, and staff engagement is vital if you wish to maximise the potential in your people and grow your business.
Tony Delaney, CEO Brownie Points
Brownie Points is working with a growing number of thought leading organisations to ensure that the entire workforce is focused, appreciated, valued, and included, through the implementation of wellbeing and recognition programs.
For more information call us today on 03 9909 7411 or email us at email@example.com for a no obligation discussion about how we can help your business.