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5 Reasons Employee Engagement Needs a Place in Your Annual Budget

The new year means office parties and time off, but it also means it’s that time of year for planning and, more importantly, budgeting. It’s the perfect time to reassess your HR spending. HR experts are sure to boast the importance of cultivating a workplace that keeps employees motivated, healthy, fulfilled and not looking to see if the grass would be greener elsewhere. The solution? Invest in employee engagement.

Millennials are taking over the workforce at a rapid rate. By 2020, 50% of the workforce is expected to be millennials, and that number is expected to reach 75% by 2030. Why are these metrics important for your budgeting plan? Because this generation expects more than a salary and benefits from their employer. They want opportunities, development and engagement. How can you set aside money for something as intangible as company culture or engagement? The truth is, having employees emotionally committed to and invested in your business does have tangible results. Here are 5 reasons b.

76% of millennials would likely leave their job if they didn’t feel valued by their employer. How are your #EmployeeEngagement strategies? Find out what you can do to retain your employees:

1. Retention

76% of millennials would likely leave their job if they didn’t feel valued by their employer. And with 75% of the workforce being millennials by 2030, that means you need to have a solid employee engagement plan or you’re bound to lose the top talent that you thought would take your organization to the next level.

Losing an employee costs your organization a lot. Studies show that, on average, losing an employee costs an average of 6 to 9 months of the salary of the empty position. But the cost doesn’t end with money. Losing an employee also affects:

  • Productivity - it could take a new employee one to two years to reach the productivity of the previous employee.

  • Engagement - when employees see high turnover at their place of business, they tend to focus on this and disengage.

  • Cost of training - a business likely invests 10 to 20% of an employee’s salary or more on training a new employee.

  • Company culture - When employees see other employees leaving, they likely take the time to ask why. This could lead to other employees to consider leaving.

2. Client/Customer Satisfaction

Engaged employees are happy employees. They see the value in their work. But the correlation between employee engagement and employee satisfaction branches out into other areas, specifically, in regard to customer service positions.

When an employee is happy, it shows. And in customer service positions — it shows even more. Companies that excel in customer service have nearly twice as many engaged employees. So, if you value customer service at your organization, you cannot afford to leave engagement by the wayside.

 

3. Productivity

As you know, the more productive your employees are, the more successful you’ll be as a business. It’s easy to blame the staff when productivity is low. But ultimately, it’s up to leaders to engage the staff and keep them motivated. Plus, 61% of employees would choose to improve their happiness over their salary. A happy employee is likely to work harder, take less time off sick, have better mental health and create close working relationships with effective communication.

Studies show highly engaged teams are 21% more productive and have 28% less internal theft than those with low engagement. Engaged employees are innovative and always have an idea or two about what they can do better. Their quality of being collaborative and enthusiastic towards work, allows them to complete their workplace goals more effectively; which leads to increased workplace productivity. Also, engaged employees are less likely to use their sick leave. One study shows that employees who consider their workplace mentally unhealthy take four times as many sick days than those who consider their workplace mentally healthy.

 

4. Reputation

People talk. Your employees talk amongst themselves and to others outside your organization. In today’s technology-focused world, spreading opinions to those outside your employees’ network is easier than ever. Despite your thought-out marketing strategies, what your employees say about your organization will have a direct impact on your organization’s reputation.

Want to improve profits, #retention, productivity and more? It’s all about #EmployeeEngagement! Find out more in @HyphenApp’s latest blog:

But what can your employee's statements on social media directly do to your company? It could mean that the knockout talent that was considering bringing their skills to your organization will look elsewhere. It could mean that those who want to do business with your organization will look elsewhere because they want to support a company that treats their employees well. This brings us to our next point:


5. ROI

If you want a profitable business (you do), you need to engage your workers. In a study, companies with an engaged staff saw a 19% increase in operating income within just one year, while those with disengaged employees experienced a 33% decrease. By increasing employees’ engagement levels, organizations can also expect an 87% reduction of employees’ leaving your organization.

Taking care of your employees and ensuring their engagement should not be empty promises for your organization. It should be an active strategy. We offer a unique engagement model where businesses can create a culture of feedback and networking. From surveys to pulse polls, Hyphen’s people analytics provides businesses the capability to improve their engagement strategies, one employee voice at a time. Request your demo and start listening to your employees anytime, anywhere!

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