Employee Engagement increases Profitability
When organizations have strong employee engagement, the profitability of the business increases, and other business rewards are also substantial.
Without a doubt, an engaged employee leads to a satisfied customer, both of which are fundamental to a successful business.
Increase profitability by choosing the right employees and keeping them involved
As a business leader who wants to drive business results, it is important to choose employees that want to be involved at work.
Therefore, make employee involvement a priority strategy. This is necessary for any organization to grow and sustain market leadership.
Unlike engaged employees, disengaged employees erode the bottom line and interfere with morale in the operation.
What do you mean by employee engagement increases profitability?
Business leaders with employees that are committed, involved, and truly engaged, have a higher potential to
- retain and promote strong employees
- reduce employer expenses, and
- increase revenue.
Furthermore, retaining engaged employees
- reduces the cost of on-boarding and training, and
- keeps experienced staff in-house.
Moreover, engaged employees are
- more productive
- customer-centric, and
- drive profit and revenue.
Employee engagement increases profitability – Tips to achieve this
To increase employee engagement, leading to profit growth, business leaders should implement these strategies:
- Prioritize employee engagement as a long-term business plan.
- Provide resources in the form of time, tools and training to keep employees engaged.
- Focus on business results and integrate these measurements in the performance review process. This is essential for accountability and evaluating individual employee performance.
- Discuss with each employee, on every level, how his/her actions influence the overall business goals.
- Ensure all staff members have enough information to understand how what they do every day, shapes the company’s bottom line and helps to achieve the goals of the company.
- Track and follow up on employee development.
- Commit to implement performance development plans for leadership, management, and all other staff.
What else can business leaders do to increase employee engagement and profitability?
In addition to the above strategies, business leaders can implement the following to influence the willingness of employees to stay involved, engaged and contributing:
- Recognize activities that are truly worthy of credit.
- Effective recognition encourages employee engagement. Besides, recognition is valuable when it is frequent. This includes verbal or written acknowledgement, and a physical reward can also be added.
- Focus on feedback that recognizes what the employee does well, and what requires improvement.
- Successful feedback is clear and specific, and reinforces the actions the manager wants to see the employee perform regularly.
- Demonstrate trust and respect.
- Managers who show they are invested in their employees and seek input are invaluable in the organization.
- Create a positive social environment at work.
- Leaders and employees who demonstrate integrity and teamwork, thrive on quality and serving clients, and are involved employees, driving business profits.
Altogether, there are many #bestpractical things that business leaders can implement to ensure strong employee engagement, leading to growth in business profits.
Importantly, an engaged employee leads to a satisfied customer, both of which are fundamental to a successful business.
Partner with CoLAB
CoLAB can assist you, as a business leader, to identify interventions to implement in your unique business environment, in a #bestpractical way, to grow the profitability of your business. This includes, among other things, ways to increase employee engagement.
Most importantly, CoLAB is known for our #bestpractical approach to solve complex problems.
Barend Cronjé is an expert facilitator and Master ScalingUp practitioner, ready to partner with you on your journey in growing and scaling your business, and ultimately improving profit.
Keen to chat? Click HERE to find a slot in Barend’s diary for a quick, free chat, if you need help with employee engagement issues in your business.
The CoLAB group serves its’ clients through 3 specialist practices: