We often hear about the importance of employee engagement, but its true impact on a business is often underestimated. While low engagement might seem like a minor issue, its consequences can be severe, leading to significant financial losses and operational challenges.
Consider these staggering statistics:
- Gallup’s research reveals that 66% of employees are not engaged, and 17% are actively disengaged.
- Presenteeism – being physically present at work but lacking productivity – costs US businesses approximately $150 billion annually.
- Disengaged employees can lead to 15% lower profitability. For an average salary of $47,000, this translates to a potential loss of nearly $16,000 per disengaged employee per year.
But the costs don’t stop there.
High turnover rates, a direct result of low engagement, can also be astronomical. In US companies, the cost of replacing a singular employee ranges from one half to two times that employee’s annual salary, according to Gallup.
It’s clear that the price of low employee engagement is far higher than many businesses realize. By investing in strategies to boost engagement, companies can significantly improve their bottom line and create a more positive work environment.
Below is a practical approach to fostering strong employee engagement within your small business.
What’s Employee Engagement?
First and foremost, the concept of employee engagement itself refers to how mentally and emotionally connected workers feel toward their roles with a company and the team they collaborate with. In its simplest terms, engaged employees are happy to be on the job and passionate about the work they do.
However, according to Gallup, only about one-third of U.S. workers are actively engaged and about 17% are actively disengaged. Someone who feels miserable while at work is only going to spread that negativity to the rest of your team, thereby acting as a drain on productivity.
4 Ways to Make Your Workforce More Engaged
There are many different ways to get your team members more passionate and excited about the work they do every day. Here are four of the most impactful strategies that you can implement right away:
- Start With Regular Pulse Surveys
True to their name, these short surveys are used to effectively check the pulse of your business. They’ll provide you with real-time insights into how your employees are feeling about their work and company culture.
Many modern human resource information system (HRIS) platforms offer built-in capabilities for conducting pulse surveys. You can create and distribute these questionnaires via email or SMS links, ensuring that everyone has a chance to participate.
The key is to make the surveys short and to the point. You should send them out about once per month and create special polls before making any major changes to the way you do business. For instance, suppose that you are planning to introduce new software. A quick survey can gauge your team’s feelings and gather useful feedback about what features they’d like to see on the platform. That kind of proactive approach can boost morale and make your employees feel valued and heard.
- Develop Strong Leadership
Leadership plays a critical role in employee engagement, especially in small businesses where the impact of each leader is more pronounced. Start by taking stock of your leadership abilities and make an effort to become better at managing others. Focus on things like emotional intelligence and being an empathetic leader.
You also need people who can step up to the plate when you are busy or away from the office. Invest in leadership development to ensure your most promising workers and supervisors possess the skills necessary to bring the best out of your team. They should reflect your values and model the right behaviors for the rest of the workforce.
- Create a Concrete Value System
A strong value system is the backbone of a positive company culture. It defines what your business stands for and guides how your employees interact with each other and with your customers. For small businesses, building a strong value system can be a game-changer in driving engagement.
Your values should be evident in all decisions and actions taken in the business. It starts with business owners and their leaders setting the tone by living and breathing their core values every day. As employees see positive behaviors consistently embodied by leaders, they in turn are more likely to follow suit. Your value system should also be infused into your recruiting and selection process to ensure cultural alignment and avoid mis-hires. Ultimately, a strong value system should inform every aspect of how you do business and interact with both employees and customers.
- Handle Employee Suggestions Gracefully
Engaged employees want to make a meaningful contribution to the business. They want to feel heard and understood. They can often see things you don’t as an owner or manager. Suppose that one of your team members recommends improving your employee benefits program. Schedule a meeting with them to discuss their suggestions further and consider whether you can reasonably implement any aspect of their request. If their request is unrealistic, be honest about your limitations and try to reach a compromise that addresses their concerns without overstraining your business.
The mere fact that you meet with them shows you care about their suggestions and feedback. They will understand that you are actively trying to make work better for everyone.
Ready to Enhance Employee Engagement? We Can Help
Focus HR offers personalized consulting solutions designed to get to the bottom of and solve your biggest talent challenges. Our team can help you simplify human resources tasks and promote better engagement across your entire workforce. Learn more about how Focus HR can take the hassle out of workforce management and engagement by scheduling a free consultation with us today.
