How Does Employee Engagement Save You Money?

Employees Are the Heart of Every Company

When your employees are healthy, well-adjusted, and happy with the organization, they invest more in both the company and their work. HR leaders see an increasing trend toward strong engagement that boosts employee productivity and enhances their overall experience.

If you want to understand how the employee journey—from effective onboarding to sustained engagement—positively impacts the business, let’s explore the ways employee engagement and satisfaction contribute to:

• Improving work quality
• Increasing happiness at work
• Providing financial benefits for the company

Effects of Employee Engagement

1. Increased Employee Productivity
   Highly engaged employees care more and invest more in their work, directly impacting their productivity. When productivity is optimized, the business benefits across all areas, from revenue and sales to customer satisfaction.
2. Healthier Employees
   Employees who experience less stress and toxicity in the workplace are less likely to fall ill or experience burnout. Healthier employees are not only more focused but also require fewer sick days.
3. Higher Employee Retention
   Strong engagement and improved employee experiences can help a company retain its employees. High turnover is costly, as it requires the continuous onboarding and training of new staff. When existing employees feel happy, healthy, and satisfied in their work, they’re less likely to seek opportunities elsewhere. This commitment enhances the return on your talent investment and ensures that your teams stay together longer. Engaged employees may even refer friends and family to your organization.

Measuring ROI: How Do We Gauge Employee Engagement?

We calculate Return on Investment (ROI) based on certain metrics related to employee engagement:

• Productivity
  Engaged employees tend to be more satisfied with their position, whether in operational or executive roles. They also feel a deeper connection to the company and its mission.
• Employee Retention
  Companies with effective onboarding and performance management processes experience lower employee turnover. This means employees stay not only for the paycheck but also because they genuinely care about their work and the success of the business. On the other hand, replacing an employee with a new hire could cost around €7,000.
• Customer Satisfaction
  Over 80% of HR professionals report that engaged employees significantly impact customer service and satisfaction. Engaged employees are more likely to go the extra mile to solve a customer’s problem and are more resilient in the face of criticism.
• Attendance
  Emotionally engaged employees consistently arrive on time and commit fully to completing a full day’s work. They are unlikely to call in sick or watch the clock, waiting for the workday to end.

Costs of Disengagement: What If Engagement Is Lacking?

What are the costs of disengaged employees?

• A disengaged employee earning an average salary of €30,000 will likely cost you €5,000 or more.
• Disengaged employees cost approximately 18% of their annual salary.
• Disengagement leads to productivity losses of up to 21%.
• A Gallup study found that businesses with engaged employees have 59% lower turnover.

How Can We Increase Engagement?

Employee engagement begins with a solid Onboarding Plan and an Onboarding Platform to properly welcome new employees and lay the foundation for their future commitment. Investing in this area will provide your company with multiple benefits.

At the end of the day, investing in a quality employee experience will boost your revenue in multiple ways. Want to see the numbers that prove it? Want to measure the impact and cost savings that an engaged workforce could bring you? Our tool below can show real data on how the employee experience benefits your business.