Employee engagement is related to retention, productivity, absenteeism, company culture, and even customer engagement, according to many organizational leaders. Others do not fully recognize that employee engagement also influences profitability and sales.
The question now in the new era is what should companies know about employee engagement?
Employee engagement is an employee’s level of emotional attachment, positive, neutral, or negative, to their organization and its goals, manager, position, and co-workers. It is the degree of advocacy, pride and loyalty felt by the employees which in turn reflects on their behavior.
Employee engagement directly impacts the bottom line, since engaged employees sell more than disengaged employees. Therefore, companies who hope to find a sustainable competitive edge should set up a smart employee engagement plan!
Why should organisations care?
For an organization, the value of engagement lies as a predictor of future behavior and discretionary effort. When correctly measured, engagement provides a statistical method to maximize the return on human capital.
Enhancing employee engagement enables leaders to increase economic contribution and improve business performance while enhancing quality of work life!
If we step back and think about what employee engagement can do, here are some of the benefits:
- Engaged employees feel happiness and other positive emotions while at work
- Engaged employees are passionate about what they do
- They feel their work is important and meaningful
- These employees consistently strive “above and beyond” your customers’ expectations.
Highly engaged employees perform at higher levels, manage problems better, respond to change more positively, and are more cognitively flexible than less engaged employees. Most significantly, for service and client-interfacing functions in organizations, highly engaged employees perform better in developing and maintaining strong customer relationships.
Overall, employee engagement can be associated with extra efforts, positive emotions, and enthusiasm. As a result, Employee engagement can affect directly any company sales.
Research uncovered a connection between employee engagement and higher sales performance. Here are some of the findings:
- Teams of Highly Engaged Employees Sell 20% more
A 2009 Economic Intelligence Unit report titled “Re-engaging with Engagement” found that teams with high levels of engagement sell 20% more than teams with lower engagement levels.
- Employee Engagement Correlates with Daily Financial Return
As Simon L. Albrecht writes in ‘The Handbook of Employee Engagement’, a 2009 study by (Xanthopoulos et al) revealed that higher levels of employee engagement predicted higher levels of daily financial return by respective employees.
- Company Case Studies Uncover Higher Sales from Engaged Employees
Sarah Cook, in her book ‘The Essential Guide to Employee Engagement’ references the work undertaken by Sears in the mid-90s around the Service-Profit-Chain. She reminds us that a 10% increase in employee satisfaction was found to be linked to a 1% increase in sales.
How is Employee Engagement Measured?
As a management tool, engagement measures an individual’s degree of advocacy, loyalty, commitment, pride, and more to the organization and its goals. Valid engagement measurement is calculated from employee responses collected through survey questions.
At TTM, we developed a proven track record in designing, deploying, activating, and sustaining talent engagement systems in organizations. Now, powered by the advanced AI driven technologies behind Qlearsite’s engagement systems, we focus on the fundamental concept of understanding and describing, both qualitatively and quantitatively, the nature of the relationship between an organization and its employees. Alongside this, we humanize technology along every step of the way, by providing engagement insights, actions, and customized long-term value.
Discover more here: https://www.ttmassociates.com/employee-experience/
Take our Employee Engagement Readiness© Assessment to discover if your Employee Engagement strategy is ready for the new era: http://employee-engagement-assessment.ttmassociates.com/