How Much Can Lack of Employee Engagement Cost an Organization?

by Christopher Austin on Wednesday 17 June 2015, 4:10 PM | Category: Employee Welfare| View: 1181 views
 
 
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 Many business managers and top executives are now realizing the importance of employee engagement. Engaged employees have been shown to be more productive, loyal and innovative. They are an essential part of the production process and properly engaging your employees can make the difference between success and failure. Unfortunately there are still many companies which do not know how to achieve employee engagement. These companies are putting themselves at risk of failing as a lack of employee engagement can lead to the following issues.

Productivity issues

It has been shown that the more you rotate staff between roles the less productive they become. This is because they have less opportunity to take pride in their work and never have the opportunity to fully develop a particular skill set.

Employee turnover

Employees who are not engaged are not committed to the company and will often look for opportunities elsewhere. To ensure all employees are engaged you will need to advise them of the goals of the company and how they can fit into the goals, this process must take into account their personal goals and cater for them.

Lack of growth and its devastating effect on a company's bottom line

For any company to grow it needs a sound business base and a good market presence. It also needs engaged employees. If you fail to engage your employees you are likely to see them leaving for greener pastures and the business will have to expend time and money recruiting and training new staff. This process means you do not have the staff required or the time to commit fully to growth and this will then suffer; potentially costing the company a significant sum. 

Customer service issues

An employee who is not engaged and committed to the company will not offer the best customer service. They have little motivation to promote the company or to go the extra mile on behalf of a company. This can have more than just a financial cost to the company; bad customer service can have a serious impact on a company reputation. It can take a lot of time and investment to rebuild a damaged reputation.

New product development

Most companies need to be either making new products or looking at which products need to be purchased next. This is essential to a company staying competitive in the marketplace. Engaged employees will want to help the business and will actively look at potential products; they will also provide this information through established communication channels. This allows the company to compete effectively and a loss of this dedication by a lack of employee engagement can quickly lead to a lack of business performance. All employees need to be given the opportunity to suggest new products and to help in designing them, if applicable. There is a huge amount of satisfaction involved in helping to create a product and knowing it will help others. This knowledge can drive an employee to suggest and help implement an array of other products.

Engaging an employee

The best approach to engaging an employee is communication. They need to know where you see them going within the company and they need to be able to share their ideas and feelings. This will naturally lead to a situation where you are supporting increased learning and training for many of your employees. It will provide them with more skills and knowledge to offer a better product and service to your customers; it will also ensure they do not wish to leave your employment as their needs will be being met, both now and in the future. Talking to your employees is an easy way to establish a connection and ensure loyalty has the opportunity to flourish.

Lack of engagement in a company can greatly affect bottom line and productivity. When your employees don't feel motivated to complete their daily chores, your company can't attain greatness. It is important for CEOs and entrepreneurs to pay more attention to their employees. Look for more efficient ways to retain them, and try not to adopt a bossy attitude each time they come to you with an issue. Be a good listener, win their trust and make them feel valued if you want people to work for you long term.  

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