What are the Cost Related Benefits of Increasing Engagement?

Image of Employee Engagement

Author: Dean Hunter

Published: 9th December 2016

Employee engagement is often talked about in terms of the obvious advantages such as how they treat customers, represent the company and feel secure. Employees who are actively engaged are more productive and approach their jobs in a positive way, which leads to loyalty and staff retention. However, the cost related benefits of engagement are rarely explored, even though research has pointed towards higher profitability and growth for companies focusing on increasing engagement. The workforce is commonly playing a significant role in many business’ bottom line.

How do we describe employee engagement?

Employee engagement is a fairly broad term, so how can it be defined? According to MIT Sloan School of Management, it is a construct that comprises all the different facets of attitudes and behaviours of employees towards the organisation. The five dimensions of engagement are:

  • Employee identification – this is where culture comes in. How do staff members relate to company values and identify with the brand?
  • Employee satisfaction – satisfied employees are absent less and more committed to their job role
  • Employee performance – valued employees who are trained well will perform well
  • Employee commitment – This develops over time, with committed employees performing better and less likely to leave the company
  • Employee loyalty – loyalty to an organisation results in doing more than expected

How engagement impacts profitability

If you take a look at those five factors of engagement, it’s actually quite easy to see how the trickle-down effect could improve sales and drive growth. It could take a long time for an employee to tick all five boxes, but even if you master employee identification and employee satisfaction you could see performance related benefits.

Treat your staff like a valued resource and you could see results in a matter of weeks. In a competitive world where there are hundreds of other companies out there selling the same products or services, it’s exceptional customer service and your people who are going to keep customers coming back. Research into global businesses has proven that companies with highly engaged employees experience high level of growth compared to those with disengaged employees.

How we can help

In addition to research, here at Hunter Adams we have our own success stories to strengthen the argument for employee engagement. We’ve reduced staff turnover from 60% to zero in a matter of weeks, and help a client save £150,000 on turnover in the first year – this is before any profit increase is accounted for.

As a small company, we should know the direct benefits of focusing on culture and engagement. The Times named as us one of the best small companies to work for in 2015, and have experience rapid growth in the first few years of business. If you’d like to discuss how our HR experts can help you tap into the growth available from employee engagement, email [email protected].