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How Employee Engagement Effects the Bottomline

There are two things to consider when assessing how employee engagement effects the bottom-line. The first is how actively disengaged employees hurt your bottom line, and the second is how engaged employees improve it.

Engagement effects bottomline

Disengaged Employees Hurt Your Bottom Line

Gallup’s study uncovers how many employees are not enthusiastic or contributing to their work environment in a positive manner. It is not a comforting thought to think that well over half (71% according to their study) of your employees are “disengaged” or “actively disengaged”.

So, how do those employees who approach their responsibilities with little enthusiasm or initiative affect your bottomline? They hold your company back from achieving the true potential that it actually possesses. They keep your business static, and not innovating. They provide mediocre (at best) customer service, and consequently lose your company’s ability to encourage customer/client loyalty.

Engaged Employees Improve Your Bottom Line

That leaves the undeniable importance of finding innovative solutions to problems, increasing efficiency, providing great customer service, and generally progressing your business forward in the hands of the minority. But that’s not new information. Traditionally, the hierarchical structure that most businesses have employed promotes those types of responsibilities to be shouldered by management. So why all the hoopla about the need for more employee engagement?

The fact is that no matter how engaged, involved, or otherwise efficient a manager is at their post, they are one person. Two heads are better than one. Taking a proactive approach by asking for input from all employees has massive benefits, and not just including a fresh perspective to problems. Here are a few:

  • Reduce employee turnaround by listening to the suggestions of employees. Everyone likes feel that they are valued.
  • Improve procedures (every little bit of efficiency counts-especially when scaled)
  • Spark Innovation

What About Your Business?

Maybe the percentages of engaged vs disengaged employees in your business is different than Gallup’s study, but do you know?

Your bottom line is important. That cannot be denied. Start the conversations today, and encourage more engagement in your organization. Your bank account will thank you. Contact us today to get started.

Josh Greenberg

+Josh Greenberg is a co-founder, software developer, and architect at EngagedMetrics. Josh is passionate about developing next generation tools for measuring employee engagement and helping companies reach their full potential.

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