Employee Engagement: What it Means for Your Business

Stephanie Schneider, HRTools.com

More than 70 percent of all employees in an average organization are either unengaged or actively disengaged in their job duties, costing the business a loss of one-third the organization’s payroll, according to research by The Gallup Organization.

Employee engagement – the level of commitment employees have towards the organization – has a large impact on productivity, innovation, loyalty and job satisfaction. Gallup defines three types of employees:

• Engaged employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward.
• Not-engaged employees are essentially “checked out.” They’re sleepwalking through the workday, putting time – but not energy or passion – into their work.
• Actively disengaged employees aren’t just unhappy at work; they’re busy acting out their unhappiness. These workers undermine what their engaged co-workers accomplish.

Gallup estimates that actively disengaged employees, who comprise about 15 percent of the workforce, cost the U.S. economy about $328 billion in lost productivity last year.

Having engaged employees is especially important in small businesses where people tend to wear many hats, says Jim Eastin, director of sales operations at Insperity, a Houston-based professional employer organization (PEO).

“If employees truly feel like they are an integral part of the team and make a direct impact on the business, they are more willing to step out of their defined job duties to help the business as needed,” Eastin says.

So how can you make sure your employees are helping rather than hindering your company? Research indicates that one of the most effective ways to keep employees engaged is to foster positive employee/supervisory relationships.

Eastin agrees noting, “Small business owners and managers should know what makes their employees tick, what their hobbies and interests are and where they see themselves in three or five years. With that knowledge they can help employees develop goals and career paths.”

To help keep employees motivated and engaged, Eastin also recommends the following:

• Make sure your employees understand and believe in the vision of your business and how their jobs play a role in reaching that vision.
• Encourage candid conversation with employees about their role, career advancement and ideas for innovative ways to do their jobs more effectively.
• Set goals with your employees at least once a year. Then help enable them to reach those goals.
• Involve employees in decision making that directly affects the way they do their jobs.
• Always think about how you can help make your employees better.

“Your employees are your most valuable assets,” Eastin adds. “Keeping them engaged is one of the best ways to keep your business on track to obtain its mission.”

Engaged workers are happy workers, which means they will be more apt to stay with your business for years to come.