Increasing Profits Through Employee Engagement

“To win in the marketplace you must first win in the workplace.”  – former Campbell’s Soup CEO, Doug Conant.

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Last week we looked at why many companies are looking to move past the typical employee satisfaction surveys and have begun trying to measure employee engagement.

This week we’ll look at a few ideas on measuring and improving employee engagement levels and of course what that means for your business.

3 Quick Takes:

  1. Increasing employee engagement leads to increased profits.
  2. Employee engagement strategies don’t have to be difficult.
  3. Taco Tuesdays and Hawaiian shirt Fridays are not the way to increased engagement.

How to gain high levels of engagement

Far too many companies think that adding a foosball table, a fancy coffee machine, funky office layouts, nap rooms, letting employees work remotely, allowing pets/kids at work, Taco Tuesdays, or Hawaiian shirt Fridays foster a level of high engagement. To us, none of these ideas or any similar to them do anything to encourage the right environment.

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Here’s what we’ve found does work.

  • Survey your workforce with intention, do not make the mistake of surveying just because everyone else is doing it. Design the survey with questions that yield responses that can be measured over time and can be acted upon. Ensure anonymity.
  • Don’t wait for the quarterly survey to give and receive feedback. Make it weekly or even daily!
  • Ensure that your company’s mission and culture are well understood by each and every employee.
  • Communicate clear and consistent objectives for the company, each department, and every employee. Relate individual goals back to company goals.
  • Recognize individual progress and achievements frequently.
  • Hire the right people that can live and breathe your company’s values.
  • Invest in professional development for your employees.
  • Scientifically select the right managers, coach them and hold them accountable for their teams’ engagement levels.
  • Encourage employees to talk about your business through social media.

Bottom line: Put your people first.

If you put the time and resources in, what do you get?

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A workplace with happy productive employees is nice, but what impact do engagement levels have on bottom line business results?

Less Employee Turnover: Engaged employees are 87% less likely to quit their job, have 37% less absenteeism, and 48% fewer safety incidents.

Higher Customer Satisfaction: Highly engaged employees provide the best customer service. The quality of service that consumers receive is the biggest factor in their satisfaction levels. Satisfied customers stay with a company longer and purchase more over time.

“Zappos was built on the simple premise that to have happy customers, we need happy employees.” – Former Chairman Alfred Lin

Increased Customer Loyalty:  Satisfied customers interacting with engaged employees that provide excellent service and go the extra mile become LOYAL customers.  An increase of 10-30% in loyalty can be seen from employees that delight their customers. This means, lower acquisition costs and higher lifetime value considering in some cases as much as 80% of future revenue is from 20% of existing loyal customers.

Exponential Growth in Profits: As you can see by reducing employee costs, increasing customer satisfaction and loyalty, profits will surely increase but by how much? Studies have shown that companies with a highly engaged workforce can expect 2.5 times the profit over those with low engagement levels and can outperform their competitors by 40-202%.

We’d love to hear what your company is doing to increase employee engagement levels! If you have questions about how Big Buck Research & Analytics works with our clients on this or any other project get in touch with us!

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