Why Employee Engagement Matters in Business


As a business owner or manager, it is your job to make sure that your employees have a high level of engagement. While they may not be enthusiastic about all aspects of their work, they should feel happy and content working for you, overall. Generally speaking, happy and engaged employees are more productive and less likely to leave the company. Here are three reasons that employee engagement matters in business.

Impact on Turnover

HR Reporter shows that when an employee leaves your company due to a lack of engagement, it will cost you. Recruiting and training new workers can get expensive, especially if the problem persists and employees are continually leaving. The company could also suffer from lost productivity because it will either be down a person or forced to rely on a replacement who won’t be as productive right away. Employers may be able to reduce turnover by paying higher wages or offering greater opportunities for advancement. Allowing workers to meet their financial and career goals can help to prevent them from becoming disengaged employees. Ultimately, they will see meaning in their work and give their best effort whenever they are on the clock. 

Impact on Profitability

According to theEMPLOYEEapp, a Gallup study of companies with the best and worst levels of employee engagement showed that those in the highest quartile had a 21% improvement in productivity due to higher engagement. Workers who are engaged may not mind working longer hours even if they are paid a salary and don’t get paid for those extra hours. While it may cost more money to host outings, provide bonuses or otherwise keep workers engaged, the increase in productivity can negate those costs. 

Reduce the Risk of Injury or Illness

It is easy to make mistakes when you aren’t paying attention to what is going on around you. As Safe Start explains, workers who aren’t engaged may make critical mistakes, such as handling chemicals without gloves or carrying heavy items on their own. If an employee drops an item, it could fall on another worker or break as it hits the ground. This could result in a workers’ compensation claim or lost revenue when the damaged item can no longer be sold. 

Employees are some of the most important components of a successful business. Therefore, it is important that they are treated well and made to feel as if their contributions matter. This can help to keep them engaged with their work, which will benefit both the employee and your company. Ultimately, treating your people well helps to build a brand that everyone will want to associate themselves with and support.

Employee engagement is heavily affected by leadership. When you know how to lead well, your employees are more likely to thrive. Check out more articles on leadership and personal development here:


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