Employee engagement allows for less stress and a better work environment. Fifty-one percent of employees report they were not engaged at work in 2015 which means they were actively seeking employment elsewhere or they wished they were working somewhere else while on the job. Only 32 percent reported being engaged meaning they were happy with their employment. Thirty-two percent of construction workers and office workers report being engaged at their jobs. Millennials are reported to be the least engaged at work and the employees most likely to be looking for jobs elsewhere.
American businesses spend between $450-$550 billion annually on actively disengaged employees and there are a few contributing factors to why employees are not engaged at work. Stress in the workplace and employee burnout are factors in employee engagement. Sixty percent of employees report that work causes significant amounts of stress in their lives and a lack of teamwork is a major cause of that stress. Employees face burnout as they continue to work overtime and 50 percent of workers check or respond to emails outside of the office.
Employees state that an environment that facilitates teamwork is a huge factor in high productivity rates and employee engagement has other benefits as well. Companies with highly engaged employees outperform their peers by 147 percent in their earning per share. Additionally, high engagement contributes to fewer quality defects and safety accidents as well as less employee turnover and absenteeism.
Companies can create retention strategies focused on culture, communication and teamwork to improve employee engagement. An employee’s manager accounts for at least 70 percent of variance in engagement scores across industries. Teams led by managers who focus on their strengths have a higher engagement score than those that focus on weaknesses. Companies can allow flexible work schedules to create better engagement. Businesses that allow for flexible schedules and telecommuting have happier employees which leads to improved productivity and engagement.
Employee engagement is an important factor in successful businesses, because there are a variety of financial benefits. Employees want to know they are contributing to their organization in a meaningful way and being engaged at work helps them to be more productive. Companies who have a high turnover rate need to focus on their employee engagement strategies to keep workers happy and satisfied with their jobs. To learn more, check out the infographic below created by USC’s Online Masters in Applied Psychology.