There are many reasons you should engage your employees, besides just money. But did you know that if you’re not engaging and recognizing your employees you could be leaving hundreds of thousands, if not millions of dollars on the table!
By engaging your employees, not only will you be improving your internal processes, but you will create a better experience for your customers.
Internal Loss from Lack of Engagement
Lack of engagement can lead to many pitfalls in your internal service channel. Some of them include:
- Lower Productivity
- Higher Turnover
- Effect on Recruitment
- Lower Energy/Motivation
- Higher Stress Levels
- Implications for Safety/Wellness
Why is Employee Engagement Important for your Bottom Line?
As an organization, if you focus on engaging your employees and removing obstacles that get in the way of internal service cooperation, it will translate into better experiences for your customers. This will create customers that stay longer, buy more and positively refer others and that means more profit for your organization!
When you have loyal customers you have a built in base of reliable continuous profit. This can continue to grow if you exceed your customer’s expectations and provide them with personalized service. When you provide your customers with value and exceptional service they will continue to be loyal to your organization. Value for your customers is created by having competent, committed, hospitable and authentic employees that can provide fast, friendly, hassle-free service. Therefore, your employees’ engagement and motivation will result in high-quality service for your customers.
The Numbers
According to a recent report by OfficeVibe, “disengaged employees cost organizations between $450 and $550 billion annually” (OfficeVibe). In their roundup of employee engagement stats, they make a very compelling case for the profitability of engaging your employees (see below).
- Highly engaged business units result in 21% greater profitability.
- Highly engaged business units realize a 41% reduction in absenteeism and a 17% increase in productivity.
- Highly engaged business units achieve a 10% increase in customer ratings and a 20% increase in sales.
- Companies with engaged employees, outperform those without by 202%.
- Customer retention rates are 18% higher on average when employees are highly engaged.
Discussion
What improvements have you seen in your organization from having an engagement and recognition program?
Do you feel your engaged employees have improved your customer experience?