Quite a relevant question, especially in the current times when everything is so volatile and war for talent is on full swing. Multi-generational workforce that blends experience with fresh talent is what organizations world over aim for – and to manage this varied workforce it is important that employees feel engaged in the company.
But before I delve into the importance of employee engagement, let’s understand what is employee engagement and how will it benefit your organization, if your employees are engaged.
Employee Engagement in simple terms is an enthusiasm, which an employee feels with regards to his/her work. In other words, it is the measure of employees’ passion and devotion for their work.
So now you know, why employee engagement is important for any organization. But this is just a tip of an iceberg. Here I am sharing five important reasons why employee engagement is important and how engaged employees can –
- Boost productivity – Finding ways to engage people by giving them a challenge or more responsibilities mean you’re boosting your organization’s productivity.
- Enhance your customer satisfaction – The most engaged employees are more inclined towards making an effort that translates into buzzing productivity levels, a happier sales force, and a more credible product pitch.
- Retain the top talent and performers – Engaged employees are involved and invested in their roles and are therefore less likely to leave their job.
- Create a positive company culture – Creating a culture of employee engagement requires “checking in with their employees to ensure that the company’s mission is aligned according to the manner their current employees are working.”
- Engagement is a symbol of success – Engaged employees are engaged not because they’re productive or easy to work with, but because they feel their work matters. They feel valued. And when their successes are recognized, employees will feel like they’ve succeeded in making a meaningful impact at work.
The major challenge faced by companies in these modern times is keeping their employees happier, engaged, and productive at work. Just like parent’s rear and pamper their kids, employers have to take care of their employees, take good care of them, appreciate them on their achievements, and trust them for their contributions. Good leaders with good interpersonal skills try to ensure this environment in the company for the betterment.
A lot of studies have been conducted in this field that confirms a strong connection between employee engagement and performance. Some of the studies conducted also indicate a robust bottom line case that shows a clear connection between the performance of the employees and the way they feel at work. This is a clear conclusion about the fact that the traditional definition of engagement that used to say “the willingness of an employee to put discretionary effort on the job” is insufficient to spur high performance in these modern times when demands are relentlessly increasing. The issue is that the term ‘willing’ is not necessarily ‘able’.
Many managers would likely tell you that their employees are fully engaged with their company and work, however, unfortunately, that’s not the case: a Gallup-conducted study found that 87% of worldwide employees are not engaged. That is a major problem and many companies are not aware that they have an internal issue.
Before we go further, let’s define what an engaged employee is.
The “engaged employee” is defined as one who is motivated, enthusiastic, and supportive about their work and takes action to improve the organization’s reputation and interests in a positive and proactive way.
147%: Another finding from that Gallup study: companies that have highly engaged employees and encourage and support employee engagement outperform their peers by up to 147% in earnings per share.
84%: Additionally, according to research from Nielsen, 84% of people trust recommendations from friends and family above all other forms of marketing. The same study found that content-based advertising was the second most trusted advertising source.