A study titled “2013 Trend Report: The State of Employee Engagement” recently came out and shows that, surprisingly, a majority of all employees in any given workplace can be considered engaged, but that there is still room for improvement to increase more workplace engagement. The survey itself reported that roughly 67.7% of employees could be classified as engaged, which is a 1% increase over the previous year’s employee engagement levels. It was conducted by surveying over 5,000 companies in 10 different areas of engagement, such as job satisfaction, teamwork, manager effectiveness and retention.
One interesting thing that the survey found was that as you got higher up the corporate food chain, the results got higher as well. While executives responded positively to 93.4% of survey items, hourly employees responded positively to only 75.5% of survey items. Clearly the employee’s position plays a role in their engagement levels. Some of the other results were:
- 78.5% positive for other salaried roles
- 80.1% positive for professionals
- 85.5% positive for managers
Another aspect of engagement reviewed by the survey was the profitability of engaged employees. The flip side of employee retention, employee turnover, can cost a company up to 150% of each ex-employees’ salary. Companies whose employees were engaged saw an 8.2% increase in employee retention, while those who stayed the same only saw a 2.1% increase.
Also in the study was the fact that companies who reported higher employee engagement levels also enjoyed an average of 3.4% more profits than their less engaged and employee retaining counterparts. 3.4% is a big bump in profits when looking at the end of year financials.
Clearly employers with higher employee engagement enjoy higher employee retention rates and greater profitability because their employees are happier to be with them. Happy employees work harder, and are more profitable and productive. If you focus your efforts on retaining your employees by keeping them satisfied with their job, then you’ll succeed.
Here at Incentive Solutions, we’ve been creating successful employee recognition programs that boost productivity, employee retention, and profitability, and reduce employee turnover for decades. It’s what we do best. If you’d like to know more about our programs and how they can help you boost your employee retention rates and revenues, call us today at 1-866-567-7432.