You might be a great motivator and an even better leader, but Google has proven that there’s always more to be done. Employee engagement is all the rage these days, with over 80% of lifetime searches occurring in the last 12 months alone. Correspondingly, searches for “employee happiness” have also skyrocketed in the past years. It’s clear that this new era of management has highlighted morale and satisfaction as key metrics. In a world of free-flowing information and quick career transitions, it’s critical for any company to adjust to this reality and prioritize keeping employees happy and engaged.
Technology has made it possible to implement cost-effective methods to improve engagement, performance, and the bottom line. HR managers know that happy employees can save a company a minimum of $2,500 - if you had the choice, wouldn’t you invest in the technology to both satisfy your employees and save money? To give you another perspective, employee disengagement in the US costs $450 - $500 billion annually. This waste is easily avoidable, but can have significant ramifications on your company.
- Companies with engaged employees see 2.5x more revenue than those who don’t encourage engagement. This is primarily a leadership problem, as many heads fail to go above and beyond to ensure that their employees are invested.
- A lack of engagement results in 33% less revenue and 11% less revenue growth. How could any leader not engage their staff knowing that it has such a dramatic effect?
- Higher employee engagement has shown a 19% increase in revenues and 28% increase in growth. This is the easiest growth hack for any organization, small or large.
- Companies that engage employees through feedback have a 15% lower turnover rate. The cost of searching for, hiring, and training just one new employee is staggering; a 15% reduction in attrition can save a tremendous amount for the company.
- Poor company culture has created a $11 billion annual loss from employee turnover. Again, this is more of a leadership problem than anything, and requires a top-down solution.
- Unhappy employees take 15 more sick days per year. While they might not be physically sick, it’s clear that they’re sick of their job and the leadership they’re under.
- Unhappy employees are 11x more likely to move to another job in the next 12 months, despite the money spent recruiting and training them. Engagement must be included in on boarding for any significant benefits.
- A 2013 Tinypulse survey of over 300 global organizations with over 40,000 surveys revealed that transparency was the #1 factor for employee engagement. Companies with closed systems can be hurting themselves more than their privacy is helping.
- Millennials believe that mentoring is one of the most important aspects of high professional performance. 88% are willing to invest personally or sacrifice vacations to train themselves in the skills needed to compete in today’s workforce. Without a solid mentorship program, engagement amongst millennials — the fastest growing workforce demographic — is bound to be low.
Investing in simple tools to increase your employees’ engagement can inflate profits by almost $2,500 per employee. MentorCloud is one solution that allows admins to understand who is engaged and happy, while working closer with employees who require additional support. It provides a much-needed metrics dashboard for quantifying some of the soft claims to success and showing a clear ROI.
Employees have an incredible impact on top- and bottom-lines, and a happy workforce through engagement will drive both to success. Engagement is no longer a luxury, but rather a necessity. True leaders know that they are never done motivating and engaging their staff; in fact, those who think they’ve done all they can do have already lost the battle.
MentorCloud not only allows you to keep a pulse on your employees’ day-to-day happiness but also provide individuals an opportunity to better themselves each and every day by seeking out and sharing the knowledge that they crave. If you agree that employee engagement is a critical component of your company’s success, please contact us here.