Employee engagement and performance: Is there a relation?
One Question that has witnessed many debates is why should organizations put resources into Employee engagement? The most appropriate and simple response is because employee engagement is related essentially to critical business results.
Studies have revealed positive relationship between employee engagement and organizational results: productivity, employee retention, customer loyalty and profitability
When employees are engaged, they are aware of their responsibilities in organizational goals and motivate their co-workers for the achievement of those objectives. Going an extra mile at the workplace is a sign of a highly engaged employee.
To de-code whether employees are engaged, employees are usually solicited to rate their views of various work environment factors:
- Do I have the chance to perform the best work every day?
- Am I surrounded by an empowering and stable group?
- Is the organization’s main goal planned, which empowers me to feel my part in the workplace is critical?
- Are my perspectives and opinions heard?
Not only does an exceedingly engaged workforce decrease turnover and employing costs, but also guarantees execution development and permanence in the marketplace.
The research additionally indicates that the more engaged employees are, the more probable their organization is to surpass their respective industry averages in their net revenue growth.
Organizations that make it a need to connect with and engage their workers are better prepared to deal with the potential changes and difficulties in the business environment.
While engagement drives performance at the individual level, it also drives execution on an organization level too. Single methodology for employee engagement isn’t a cure for each company. It’s a fragile mix of organization objectives, culture, values and what drives the group. Since these are distinctive with each association, there are not one-size fits all solution.
Engaged employees consistently exhibit 3 general practices which enhance organization performance:
- the employees promote for their organizations to co-employees and refer potential recruits and clients
- in spite of chances to work somewhere else the employee develops an intense association to continue to be the part of the same organization
- The employee applies additional time, initiative and effort to add to the accomplishment of the company goals.
Motivated and engaged employees are more beneficial in the workplace. All things considered, the question companies ought to be asking is how would we prepare and build up a workforce where everybody can flourish and survive going ahead.
If disengaged employee directly interacts with customers, they get a high number of a client complaint. If left unattended, these effectively disengaged employees become demotivating venom on co-workers.
Employee disengagement and productivity
Various studies have evaluated the effect employee engagement (or deficiency in that department) has on organization revenue:
- Companies that have engaged employees outrank those with the disengaged employee by 202 percent reports Dale Carnegie Training.
- extremely engaged employees support an organization’s net overall revenue by 6 percent Is estimated by Towers Perrin
- Conversely, Gallup estimates employee disengagement costs U.S. business between $450 billion and $550 billion a year due to poor productivity.
- On the contrary, Gallup reports that employee’s disengagement costs U.S. businesses between $450 billion to $550 billion annually because of poor productivity.
The effect of employee disengagement on the profitability originates from a few elements, including soaring turnover rates that mean escalating hiring costs; poor customer connections that promptly lost revenues.