Have you noticed the term 'employee engagement' everywhere? Is it something you know you should consider, but don't know where to begin? While it seems like an endlessly trending topic, the latest Gallup State of the American Workplace report shows that an overwhelming majority of American workers are disengaged. The importance of employee engagement is imperative to any business’s success. High levels of engagement have been proven to reduce staff turnover, improve productivity and efficiency, retain customers, and increase profits. The importance of keeping your employees engaged has become more prevalent, and the change is affecting businesses across the globe. As researchers at Gallup explain, “most workers, many of whom are millennials, approach a role and a company with a highly defined set of expectations. They want their work to have meaning and purpose”. The way organizations operate is also changing, from new technology in the workplace to flexibility to how an employee works and where.
Employee engagement is defined as the emotional commitment the employee has to the organization and its goals. An engaged employee is one that is enthusiastic about their work and is invested in their organization's reputation and interests.
Highly engaged business units experience a 28% reduction in shrinkage (the dollar amount of unaccounted-for lost merchandise) and a 40% reduction in quality defects.
It is just as important to retain top talent as it is to attract these employees. Studies such as SHRM, have found that each time a business needs to replace a salaried employee, it costs 6 to 9 months’ of that salary on average, and up to 213 percent of annual salary for highly educated executive positions. To put it in perspective, a manager making $40,000 a year, that's $20,000 to $30,000 in recruiting and training expenses.
