Employee Engagement Benefits and Its Challenges

By Danni White - Last Updated on August 14, 2020
Article Describing About the Benefits of Employee Engagement

Employee engagement refers to developing employees’ skills and talents so that they can be a valuable asset in achieving the company’s goals. The benefits of employee engagement keep the employees happy and keep the company running successfully.

For the very reason, surveys and other methods are used to measure employee engagement. However, there’s little to no use of traditional methods to measure employee engagement as only modern ways reflect how satisfied modern employees are.

Just as measuring your sales and finances is important, measuring employee engagement is a part of your success as well. It helps the employers in real-time and benefits the company in the long run.

(Also Download – Whitepaper on The Benefits of Employee Engagement)

What are the Benefits of Employee Engagement

Below are some of the benefits of employee engagement and how it plays a role in leading the company and its employees towards success:

  1. Increases productivity

    The more the employees are engaged, the more productive they are. A study by Gallup revealed that engaged employees are 21% more productive than the ones who have no attachment to their companies. So, making employees productive and aligning their goals to the company’s goals must be an employer’s end goal if he wants to expand his business reach.

    Engaging employees is the only thing you can start with if you want to work with a productive and innovative workforce.

    While an unengaged employee will procrastinate, an engaged employee will work dedicatedly and will take less time to meet the deadlines of the task. Simply put, engaged employees are more hard-working, enthusiastic, and satisfied than the ones not happy at their workplace.

  2. Improves the retention rates

    A study by Gallup revealed in 2017 showed that 51% of the employees in a company were ready to leave their jobs due to the low pay rate or lack of recognition.

    Engaging employees do not only lower the turnover rate but also increases the retention rate. Employees join the organization with high hopes and desires. When employers fail to provide them with what they had expected, they start losing interest in the company’s goals. They start looking for other organizations rather than sticking to yours.

  3. Increases revenue

    Aon’s survey carried out in 2018 suggested that every 5% increase in employees’ engagement level improves the revenue cycle by 3%.(1)

    When employees’ goals align with the company’s goals, they automatically get ready to go the extra mile for the organization’s success. Thus, higher engagement levels increase the revenue by 2x as compared to those organizations that do not bat an eye on employee management.

  4. Lowers the number of absentees

    Repeated employee absents are a sign that the employee is not engaged with the organization appropriately. The more the absents, the more the organization will suffer. Not only can it hamper and harm the employee’s performance but also his productivity.

    This factor can severely affect the company’s revenue flow. To solve this problem, one must provide ways to maintain the balance between personal life and work.

    Wellness programs and good vacations are two ways to reduce absenteeism.

  5. Exceptional customer service

    It is no hidden fact that engaged employees offer better support to your customers. Being proactive and positive makes them respond to colleagues and customers in a highly professional way.

    Great customer support is a great asset to the company.

  6. Makes the employees loyal

    A long-term benefit of employee engagement is that it makes them loyal to the organization. whenever an employee is emotionally attached to the organization, he will work dedicatedly to strive for the company’s success no matter what the circumstances.

  7. Quality work

    Engaged employees are motivated to do any task assigned to them. They do every task with precision and dedication.

    Moreover, engaged employees enjoy what they do. This means that they are more efficient and constantly come up with innovative ideas. Moreover, they are always curious to learn from their employers and mentors.

  8. Innovative and creative work

    Engagement makes an employee zealous. He constantly comes up with new innovative and creative ideas to build the company’s reputation in the market. Since they are so dedicated to their work, they work day and night to meet the work deadlines.

  9. Engaged employees have positive vibes

    Engaged employees radiate differently among the non-engaged employees. They have a certain energy and spirit at the workplace that the non-engaged employees do not show.

    They are motivated and try to achieve every task as actively as possible. Moreover, they also participate in extra outside activities such as taking a course to ensure that they deliver the best work and present themselves in a positive manner.

  10. Engaged employees are more innovative

    Innovation has no limits when the employees are engaged and dedicated to the organization. being innovative gives employees the autonomy to believe and make their own work decisions.

  11. Engagement drives employee advocacy

    Engaged employees are happy and proud to be a part of the organization that they work for. Hence, the become the organization’s advocated. Not only do they promote the company but also talk positively about the company’s products and services to their friends and family.

  12. Engaged employees offer good suggestions

    Engaged employees genuinely care about the better of the organization. Hence, they do everything in their power to keep the company up and running. They even offer positive ideas and suggestions to expand the company’s reach all around the globe.

  13. Cost savings

    We all know that losing an employee cost a lot of money as companies spend billions of dollars on recruitment and employee training.

    However, by engaging employees, the company can save money as well as the time.

  14. Engaged employees are motivated

    Engaged employees do not work to get a paycheck at the end of the month. Instead, they work for the company’s growth. They are motivated to take the company’s goals forward.

  15. Effective leadership

    Loyal employees today are the leaders of tomorrow. When managers and team leaders are engaged, they offer effective and better leadership. Not only do they strive for the team to work hard but also connect to the team so that they can get maximum results.

  16. Lowers theft rate

    Employee theft is a known disaster that most of the companies still experience. However, employee management reduces employee theft by 28%.

  17. Better employee health

    One study reported that engaged employees show great health and low-stress levels as compared to the non-engaged employees. They have higher interest levels and always welcome any work related to the company they work for.

  18. Improves employee satisfaction

    Engagement tends to increase employee satisfaction as well. When you will recognize them, offer them a high paycheck and appreciate them, the employees will be nothing but satisfied to work in such an organization.

  19. Happier employees

    Take care of your employees and they will make your customers happier than ever. To improve your customer support service, try to keep your employees happy and engaged. Building good employee relationships is necessary to build good customer relationships.

  20. Increased number of sales

    Engaged employees are very much motivated to advocate for the organization that they work for. That is why they always promote the company’s services and products and see it as a duty of their work. This dedicated act does not increase sales but improves the company’s image as well.

  21. Better home life

    When you provide a work-life balance to your employees, they would definitely feel better at all times, no matter if they are at the home or at the workplace.

  22. Higher stock price

    An engaged employee is more profitable to a company than the customer. Engaged employees spend a fraction of their time advocating for the company. This increases the revenue cycle, hence ensuring higher stock prices for the organization.

  23. Better quality of services

    The more dedicated the employees are, the better your services and products. Each employee plays a crucial role in delivering quality services. Engaged employees ensure that the services and products an organization is providing are of high-quality.

  24. No need for recruiting extra employees

    As discussed above, the benefits of employee engagement increase the retention rate. With a low turnover rate, there would be no need in spending money and time recruiting other employees.

  25. Increases the work capacity

    Engaged employees lose track of time when they work dedicatedly for their organization. with increased productivity, they complete every assigned task within the deadline, and even before. Hence, increasing work capacity.

( Also Read: 61 Innovative Employee Engagement Ideas )

Employee engagement challenges

  • Motivating the employees to stay engaged
  • Eliminating work politics
  • No sense of building a work community
  • Most of the employees lack knowledge about SMART objectives
  • Hard to maintain the work-life balance by employees
  • Often, the employees are not given development opportunities

Final Thoughts

Here are the benefits of employee engagement, but at the end of the day, your employees are the most valuable asset. Implement employee engagement strategies and see a positive impact, not only on the employees but on the organization’s workflow as well.

However, employee engagement(2) should not be you forcing your employees to work hard for the organization. The main purpose is to keep the employees happy, satisfied, and content with their work.

Danni White | Danni White is the CEO of DW Creative Consulting Agency, a digital marketing firm specializing in elevating the visibility of small-to-midsize businesses and nonprofits. She is the author of 17 books and hosts the #Hashtags and Habits Podcast, which merges digital marketing, entrepreneurship, and personal growth.

Danni White | Danni White is the CEO of DW Creative Consulting Agency, a digital marketing firm specializing in elevating the visibility of small-to-midsize busi...


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