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How Can Employee Engagement Affect A Business?



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By : Joe Maldonado   

Copyright (c) 2012 Joe Maldonado

Employee engagement has no clear cut and universal definition. However, different organizations often agree with the same definition of engagement which states that employees are called to be engaged when they have heightened intellectual and emotional connection to the job, the company and the manager as well as the coworkers, which leads additional efforts put in by the employees for their job resulting in greater efficiency and output and increased likelihood of the employees attaining their goals and targets which realize the company goals and vision. There are no specific metrics for measuring employee engagement however it is often measured in terms of retention, advocacy, effort and passion. Engaged employees will have passion for their work and they will put in additional discretionary effort for their job and they will recommend the employer to others and at the same time, they will have intentions to stick with the employer rather than changing jobs.

Now that we know what employee engagement is, we need to know that percentage of engagement will differ significantly from one company to other because every company is unique and has its own set of management and way of dealing with the employees. However, one thing that is common is that employee engagement is going to actually help the businesses to achieve what they want, which is not possible if the employees are simply happy and satisfied. This is because of the fact that studies show that there is no direct correlation between better company performance and happy and satisfied employees but there is definitely a positive correlation between employee engagement and overall performance of the business. Let us find out how employee engagement can affect a business.

- Engaged employees are high performers and they are more productive and they achieve their targets and fulfill their goals. This translates into achievement of company goals.

- With higher employee engagement, the Earning Per Share for the business increases every year.

- With higher employee engagement, the customer engagement also increases and hence, the number of satisfied and engaged customers increases.

- Share prices for the companies with highly engaged employees are more than the competitors.

- Engaged employees actually spend more time on work and hence, they turn out to be more effective and productive.

- Teams which are more engaged are found to have more sales than those which are not engaged or have low levels of engagement.

- More employee engagement will mean less demand on HR which will ensure that HR will commit fewer errors.

However, in order to have engaged teams, the morale of the team needs to be very high and this is not easy to achieve. The responsibility actually lies with the managers. The managers need to have proper leadership skills so that they can motivate their teams properly and make them learn how to love their work and have respect for their coworkers, management and the company as a whole. Managers need to be proactive in achieving higher employee engagement.

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