We live in an era of increased corporate transparency, across market skills shortages and a shift in attitudes toward the standard office environment: employee engagement and retention are now top issues for every business manager. Fostering a cohesive and human corporate culture and ensuring employees understand it and feel a part of it, is one of the main objectives for companies around the world. Companies with a
positive working environment can outperform their direct competitors by as much as 3x in terms of annual operating income. Did you know that? Let’s dig a little deeper though
According to the Gallup polling firm, only 13% of the global workforce is highly engaged. The 70% of the employees are not entirely engaged in their workplace, while 26% of them is actively disengaged. These figures likely stem from the fact that many employees do not fully understand their role within the company. In fact, statistics show that high levels of employee engagement can increase operating income by as much as 19,2%, while low levels of engagement may result in losses to the tune of 32,7%: a performance Gap of 52%. It’s not the first time you’ve heard about this, right?
Employee engagement and culture issues have become important topics in the last couple of years, encouraged by the fact that employees actively seek out companies with a clear and well established culture. In fact, 60% of the workforce believe that culture is more important than strategy, when the time comes to decide which company to join. Flexibility, empowerment, development, and mobility all play key roles in defining a company’s culture. Today, more than twice as many employees are motivated by work passion rather than career ambition (12% vs. 5%), indicating a need for leadership to focus on making the work environment compelling and enjoyable for everyone.
Culture and engagement are no longer topics owned solely by the HR department. A Forbes report on 2000 Global Companies has shown how highly engaged companies can hire more easily, deliver stronger customer service, have the lowest voluntary turnover rates, and tend to be more profitable in the long run go to the website. An employee who is engaged offers suggestions for improvement, believes in what the company is doing and is loyal to it; they engage in dialogue with their management teams and understand the bigger picture of what they are working towards.
It has become clear that a strong Employee Engagement strategy makes a measurable impact on customer rating, profitability, absenteeism, turnover and productivity: the creation of a positive working environment will be the major turning point to achieve better results and optimise every single unit of the workforce.
Overcoming communication also requires further consideration. Engaging your employees will help the organisation to avoid loosing time in clarifying inter-departmental communication, which can cost up to $528,443 a year for a company with more than 100 employees. As a manager, you can’t afford to lose time explaining a project goal to your employees for a second or third time.
One of the worst-case scenario for a Company, is to face a high level of employees turnover. Let’s assume, based on Forbes report, that a company has 1000 employees, with an average of $50,000 of salary and a 10% annual turnover: this will cost up to $7.5 million per year for the company.
People usually want to quit their job because they have lost confidence in their managers and they feel disrespected with respect to their free time. Your workforce needs and wants to understand the bigger picture they work within and also to feel that what they are doing is meaningful.
It is clear that strong internal communication strategy is a corporate priority, we at Beem understand this. Talk to us today to find out how we help organisations to boost employee engagement.