What is the business case for employee engagement
Need a business case for employee engagement?
It seems that many executives and HR professionals still struggle defining the business case for employee engagement. But there is no need for an traditional business case for employee engagement – the impact is to obviously.
But why is employee engagement important to businesses? Improving employee engagement is not simply about improving productivity – although organizations with a high level of engagement do report 22% higher productivity, according to a meta-analysisof 1.4 million employees conducted by the Gallup Organization. In addition, strong employee engagement promotes a variety of outcomes that are good for employees and customers:
Business or work units that score in the top half of their organization in employee engagement have nearly double the odds of success (based on a composite of financial, customer, retention, safety, quality, shrinkage, and absenteeism metrics) when compared with those in the bottom half.
Employee engagement affects nine performance outcomes. Compared with bottom-quartile units, top-quartile units have:
- 37% lower absenteeism
- 25% lower turnover (in high-turnover organizations)
- 65% lower turnover (in low-turnover organizations)
- 28% less shrinkage
- 48% fewer safety incidents
- 41% fewer patient safety incidents
- 41% fewer quality incidents (defects)
- 10% higher customer metrics
- 21% higher productivity
- 22% higher profitability
Are you convinced now?
Not yet? Than let’s have some more facts from Top 10+ reasons why employee engagement is important:
While people define engagement in various ways, I prefer a plain and simple definition: People want to come to work, understand their jobs and know how their work contributes to the success of the organization.
So where do you begin if you’re committed to improving engagement? One way to simplify it is to focus on purpose. Communicate the purpose of the organization, and how employees’ individual purposes fit into that purpose. When employees clearly know their role, have what they need to fulfill their role, and can see the connection between their role and the overall organizational purpose, that’s the recipe for creating greater levels of engagement.
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Infographic: What is the business case for employee engagement — http://www.torbenrick.eu/t/r/fcl
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