We’ve all heard the case for employee engagement—higher engagement levels lead to greater employee output, increased productivity and favorable business outcomes. So why do so many leaders treat engagement like just another task on their to-do list?
The short answer: historically it’s been difficult to measure and improve engagement real-time. When confronted with understanding engagement and what drives it, organizations seldom know where to start. And the traditional methods for understanding how engagement data translates into employee loyalty and performance have generally provided outdated information leading to non-impactful action and, ultimately, missed business outcomes.
Employee engagement is the cognitive, behavioral, and emotional commitment of an employee to an organization and its goals. An engaged employee possesses a deep understanding of what it takes for the organization to succeed and is willing to go the extra mile to help the business get there. She is not working for the paycheck, rather the success of the organization, and will go “all in” as a result.
Engagement Positively Affects Your Bottom Line
Why does this matter? The value of engagement is often considered a soft strategy (a ‘nice to have’ versus a ‘need to have’) and has long been understated due to a lack of knowledge around its fiscal benefits. However, it’s not only an advantage to have loyal employees that are willing to go above and beyond, but organizations can also harness this enthusiasm to promote strong business outcomes. In fact, those businesses with engaged employees outperform those with low employee engagement by 202 percent. Additionally, organizations with a highly engaged workforce experience a 19.2 percent growth in operating income over a 12-month period.
Engagement Directly Reflects Your Brand and Impacts Customer Loyalty
Employee engagement benefits the external face of a business. While a paycheck is sometimes enough of an incentive to get an employee to show up on time, promoting an engaging culture and empowering employees to make independent decisions that will positively impact the customer experience will drive increased business outcomes. Many studies have shown a direct and positive relationship between employee engagement and customer loyalty; companies that deliver a better customer experience enjoy stronger business results. And they gain a competitive advantage when they promote a seamless brand experience through “all-in” employees.
“All-in” is a term that can be explained through the displayed excitement, enthusiasm and happiness of an employee or group of employees, and it shouldn’t be underestimated. These positive feelings are palpable to customers and convey a sense of energy and optimism. Emotion makes people act. We all understand this. If a customer is greeted by a disgruntled employee, that customer is likely to take their business elsewhere. Conversely, if a business’s first touchpoint with a customer is an engaged employee willing to go the extra mile, that goes a long way to build a customer’s satisfaction and loyalty. Take In-N-Out Burger for example, which has an average of more than 4.3 stars on Glassdoor. Yes, In-N-Out Burger has a popular product, but its core focus is on empowering its people to provide world-class customer service. By fostering internal empowerment and engagement, In-N-Out then reaps the benefits of exceptional employee engagement with a high degree of loyalty to the organization from its customers.
How to Measure Employee Engagement
While the benefits of employee engagement are clear, measuring these efforts might seem more ambiguous. The common practice of annual engagement surveys typically represent a “box-checking” exercise, and have run their course as a means of engaging people . They have done little to actually empower employees to do better in their roles. It’s true traditional surveys may offer visibility into engagement across the organization, but they provide outdated information and offer little guidance in terms of what the data has to say. To take action from survey data that will have real and positive impact, the right people – managers and leaders – need real-time insights into the health of the organization, including indications of where the biggest obstacles to success lie at any given time. Beyond that, leaders and managers need the guidance and a framework to take specific action to improve focus areas. Traditional survey methods simply don’t provide these insights in a timely and relevant manner.
The field of people analytics is opening the door to better data, as well as the guidance to improve. With emerging technology and artificial intelligence, we have the ability to end the “one-size-fits-all” approach to talent management and instead promote individual success. Glint for example, uses real-time insights to give organizations access to the most current data while highlighting strengths, weaknesses and trends. The insights provided help uncover critical challenges and promote continuous improvement, leading to better business outcomes like increased customer satisfaction.
Employee engagement is essential to every business. With $11 billion dollars lost annually due to employee turnover, it costs businesses not to invest in their workforce. Additionally, the direct correlation between individual employee success and customer satisfaction make it impossible to treat employee engagement as a “check-the-box” exercise, but rather should be viewed as a key strategic component to any thriving organization.