People Magazine

Employee engagement and why It matters to SME’s

Employee engagement
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Employee engagement is directly tied to employee satisfaction.

Engaged employees lead to positive side effects in a variety of areas.

Employee engagement should be a priority for businesses of all sizes.

Increase employee engagement with some easy strategies like compassion.

How high does employee engagement rank on your priority list? For many SMEs, it might be closer to the base of that priority pyramid. Small and mid-sized businesses have a lot to focus on. From being productive and profitable to slow and steady growth amidst major competition, it’s tough out there.

However, employee engagement is critical for every aspect of a business. Employee satisfaction is linked to fewer sick days and more productivity. Employee engagement activities can help increase morale, achieve organizational goals, and create a positive company culture.

Engaged employees are happy employees. With employee engagement being linked to every positive aspect of a business, you can’t afford not focusing on.

Why is employee engagement important? It has a snowball effect.

Harvard Business Review recently reported on data that included 1.4 million employees. The study found that employee engagement was directly linked to:

  • 25% less employee turnover in high turnover jobs. A company with more employee engagement simply had a lot less turnover. If workers are engaged, they’re less likely to quit or look for other jobs.
  • 48% fewer safety incidents. Unsurprisingly, the more employee engagement there was fewer accidents. This isn’t just for high-risk jobs like construction workers. The number one workers’ compensation claim every year is the slip and fall.
  • 41% fewer product defects. Another unsurprisingly find: when there’s employee engagement, there are fewer issues with products. This goes for everything from cars to sandwiches.

Employee engagement is critical because it affects everything related to your business. Engaged employees are aware, alert, and more productive. They’re happier, healthier, and they’re paying attention. They’re less likely to leave and more likely to recommend skilled workers to join your company.

Importance of employee engagement in HRM: A must for businesses of all sizes

Human resources management, or HRM, is a critical department for any company. However, you can’t assume that just because a worker is in HR that they’re innately engaged. HR workers can suffer from burnout and lack of engagement just like anyone else. If you overlook employee engagement in HRM, that can be a big mistake.

Workers often look to their HR rep for guidance. If it’s clear your HR workers aren’t engaged, that tells your other workers that zero engagement is the norm. HR workers need HR representation just like everyone else. They need encouragement and positive feedback. If you see that there’s no engagement in this department, you can count on a snowball effect in other departments.

One way to gauge employee engagement in HRM is with the right HR software. This will help you keep track of incidents and monitor employees at risk of engagement fallout.

Employee satisfaction and engagement: Strategies to implement

Employee satisfaction often goes hand in hand with engagement. More engaged employees are just happier. Happy employees are healthier and are the best word of mouth advertising for your company. However, how can you increase both engagement and satisfaction?

  1. Be flexible. Whether it’s offering flex-schedules or asking employees to volunteer to take on leadership roles, flexibility in the workplace can increase engagement.
  2. Be kind. This golden rule can get lost during high-stress periods. Kindness, compassion, and empathy go a long way.
  3. Listen. If workers feel like their managers genuinely listen and care about their opinions, they’ll be more invested in their work and company.
  4. Trust your employees. Avoid micromanaging and encourage every employee to take ownership of tasks. When they’re trusted with their jobs, engagement will follow.
  5. Create a safe environment. Employees should feel safe to express questions or concerns in the workplace. Create a judgment-free zone and practice openness and expression.
    Keeping an eye on engagement levels is a must for HR and managers. Habits and attitudes can “catch” in the workplace. You want positive engagement to lead the way and to address negativity early.

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