Employee engagement, also identified as employee experience, is buzzing in recent times. But most employers only realize the need for an employee engagement strategy when something goes wrong (when they see a higher employee turnover rate or a large number of offer rejections).
Poor employee engagement results in lower retention, and poor employer brand impacts hiring. These terms play a critical role in any organization- a higher employee turnover rate affects the employer brand badly, and the bad reputation of a company repels new talent. This is why employee engagement has become a hot topic these days.
Employees are ready to or prefer to leave their organization for a better opportunity when their employer has no or poor employee engagement strategy. A study shows that nearly two-thirds of global employees say they’re actively looking to join a better organization. That’s a considerable portion, and it is that way because employees feel disengaged with their organization. Many factors cause employee disengagement, and there are many reasons why employee engagement is vital for an organization. By looking into those factors, you can bolster employee engagement. Before we see them, let’s quickly understand what employee engagement means.
What is Employee Engagement?
Employee engagement is a fundamental concept that defines the employee’s passion and commitment to their organization and its goals. Simply put, it is the emotional connection of an employee towards their employer.
An engaged employee invests quality time in their work and achieves their organization’s goals. In contrast, a disengaged employee can make the workplace toxic. Therefore, organizations need to create and play by their employee engagement rules and strategies.
How does Employee Engagement Matter for an Organization?
These days, employee engagement is a crucial term among human resources teams. It matters the most to an organization because it impacts the business at both micro and macro levels. Let’s see how important it is.
- A study shows companies with active employee engagement strategies grew about 682% in revenue. Because engaged and motivated employees are 44% more productive than others.
- A highly engaged workforce can boost profitability by 21%.
- Employee engagement boosts employee retention, and that saves huge money.
- When employees are disengaged, they become toxic to the work environment and spread negativity among colleagues. A toxic environment affects productivity.
- Engaged employees are happy employees who create satisfied customers—companies with such a workforce experience 89% greater customer satisfaction.
What are the Key Components of Employee Engagement?
1. Leadership
Leaders play a key role in employee engagement. Managers account for nearly 70% variance in employee engagement. So, it’s crucial to have great leaders in your company. Good leaders know how to motivate and communicate with employees. They take responsibility and be accountable for their teams’ actions. When employees feel their bosses as their mentors or friends, they develop more attachment with their work, and their productivity boosts.
2. Communication and Setting of Goals
Communication and goals are other essential elements in employee engagement. 85% of employees are more productive when internal communication is effective. When there is no proper communication, and when people are unclear about their roles, responsibilities, and goals, they lose motivation to work. A good leader ensures adequate communication and the right goals to encourage employees to work effectively.
3. Recognition & Rewards
Every employee desires to feel recognized and valued. They all love rewards for their work. Hence, it’s important to have employee recognition and rewards programs regularly to keep them motivated. They tend to work harder to achieve their goals and help their peers if they are appreciated and valued for their work year-round rather than once or twice a year.
4. Growth Opportunities
As per the latest Gallup report, nearly 51% of employees are actively disengaged in the workplace. Employees with no attachment to their employer and work are likely to leave their job for a better career opportunity even if they are not actively looking for a job change. So, an organization must provide growth opportunities for its employees. Employers should offer great work-life balance and training programs for their personal and professional development.
5. Evaluation & Feedback
Evaluation and feedback are essential components to improve employee performance and productivity. A survey shows that more than 43% of highly engaged employees receive feedback at least once a week. So, don’t wait for quarterly or annual reviews to evaluate or share feedback. Feedback doesn’t mean praising your employees. In fact, they only expect you to suggest or help them improve their performance.
6. Sense of Belonging
All the above-discussed components help build a sense of belonging among employees, crucial for employee retention. When employees feel they belong to an organization, they work harder and contribute more to it. You can sow a sense of belonging in them by letting them clearly know their responsibilities and goals.
They feel more inclusive when their work is valued, and opinions are heard. Asking their opinions or feedback in major business decisions will make them feel part of the company.
Most companies wrongly understand employee engagement. They think it is all about team-building activities or offering good compensation. Frankly, these tricks don’t last; they can engage employees only for a shorter time. To really understand your employee engagement strategy, you need to first understand what factors made (or are likely to cause) employees demotivated and disengaged with your company. Ensure you cross-check the above-discussed elements before you implement employee engagement strategies for your company.
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