By Ashleigh Brown
What is the ROI of a good employee engagement program? That is the multi-million-dollar question. But, for us, it’s really two questions:
What is the return on investment for companies using our employee engagement program?
What is the return on investment for employees who take valuable time to give clear, honest feedback, and suggestions for what can be improved?
For businesses, the financial ROI comes from two primary sources
Productivity: Engaged employees use more discretionary effort when it comes to the quality and quantity of their work. In short, they bring their whole selves to the job, doing their work faster, with greater attention. This also results in statistically fewer safety incidents for engaged organizations, which has a tangible effect on ROI as well.
“77% of employees agree a strong culture allows them to do their best work, 76% see the impact in productivity and efficiency, and another 74% draw a correlation between culture and their ability to serve their customer base.” (Eagle Hill Consulting)
Retention: Engagement has an enormous impact on staff turnover, and it’s expensive to hire and train new talent. There’s also considerable ROI attached to your employees telling everyone how much they enjoy working for your business, making top talent acquisition that much easier.
“Highly engaged employees are 87% less likely to leave their companies than their less engaged counterparts.” (Corporate Leadership Council)
The combined result of higher productivity and retention can be seen on an engaged organization’s bottom line. Statistics show that highly engaged organizations outperform those with low employee engagement by 202% (Gallup), grow revenue 2.5x as much (Bain & Company), and have shown to increase profits by up to $2,400 per employee annually (Workplace Research Foundation).
But, those aren’t the only returns you can expect from improving employee engagement. There’s also the positive impact of having engaged employees volunteer suggestions for how to:
- Increase efficiency in business practices and processes
- Improve the experience and outcomes for your customers
- Improve the experience of fellow employees
- Strengthen relationships and streamline processes with vendors
Your employees are fonts of wisdom and solutions, and by listening to them and using their ideas to create positive change, you not only make them more engaged – you also reap the rewards.
Calculate your company’s employee engagement savings and see how much money you’re missing out on.
For employees, the primary ROI is feeling heard and valued
While 60% of U.S. employees report having a way to provide feedback about their own employee experience, only 30% said their feedback is acted upon by their employer. (Qualtrics)
A good employee engagement program has accountability built in, so feedback is not just requested and given, but used to create real, positive change that employees can feel.
“Employees who feel their voice is heard are 4.6 times more likely to feel empowered to perform their best work.” (Salesforce)
When employees see that their feedback is having a tangible effect on their work lives, they will be more thoughtful in their future feedback, and excited to contribute innovative ideas and solutions for how to make your business better.
“5% of employees don’t think their contributions make any kind of difference, while 44% do not understand their impact or are unaware of business goals.” (Ceridian)
Feeling valued is one of the most important outcomes employees can have with the improved communication a program like Engagement Multiplier facilitates. But there is another equally, if not more important, return for their time: Understanding how their individual contributions impact the entire organization, the customers, and the world.
Employees want to feel like their work has a positive impact, but the connection between what an individual does at their desk and the wider world isn’t always clear. When employees do feel connected to a larger WHY behind their tasks, they bring their hearts to work.
And that’s where the ROI of employee engagement really comes from.