Most businesses of course look at their customers and their satisfaction levels consistently to spot trends and keep ahead of any potential problems, but how many organizations look inside their own walls?
These days “employee engagement” is a term that’s hard to miss. Although it’s been around for some time it has certainly gained traction with the influx of millennials entering the workforce. Whether you run a small business or a large corporation business leaders are starting to look beyond traditional employee satisfaction surveys.
Employee satisfaction vs. Employee Engagement:
It’s crucial to understand that there is a distinct and important difference between satisfaction and engagement.
Satisfaction measures employees happiness with their job and responsibilities. Satisfied may mean they’re happy with their income, the work place and their day to day job, but this does not mean that they will go above and beyond the scope of their work to help the company.
Measuring employee engagement looks at how emotionally invested employees are in the overall company. A way to think about employee engagement is how willing are employees to go outside of their work and written job descriptions for the better of the organization? How deeply do they care for their company?
It is possible to have satisfied employees that are not engaged, but it is unheard of to have engaged employees that are not satisfied.
Why do engagement levels matter?
Of course we all know having employees that are satisfied and highly engaged is ideal, but companies know that it may take time and resources to ensure high levels of engagement. Is it worth taking a hard look at and maybe having to make some significant changes? We think so, and here are some statistics that support that.
- Companies with engaged employees outperform others by up to 202%.
- Highly engaged employees perform 20% better than their less-engaged colleagues.
- Companies with a highly engaged workforce achieve twice the annual net income of organizations with less engaged workers.
- Engaged employees are 87% less likely to quit their job.
- Having engaged employees results in 37 percent lower absenteeism, 48 percent fewer safety incidents, 21 percent higher productivity, and 22 percent higher profitability.
- The slightest increase in employee engagement — let’s say 5% — can increase your operating margins by 7%.
- 63% of workers worldwide are “not engaged.” 24% of these are “actively disengaged.” This means they are unhappy, unproductive and likely to spread negativity to their colleagues.
Join us next week
If the findings above strike you as hard as they hit most businesses, join us next week as we look at how to measure and improve employee engagement regardless of business size or industry.