What is the Impact of Employee Engagement?

Posted by Judy Fort on October 5, 2016

employee Gallup studies show employee engagement is on the rise and, hand-in-hand with this, so are engagement initiatives with many companies going so far as to assess their managers based on how well their employees are engaged. The link between top performing companies and a highly engaged workforce is becoming more and more evident as this trend takes hold.

Who is engaged?

Employee engagement differs between different groups, with managers at the levels at 38.4% and millennials the least engaged at 28.9%. Many factors drive these trends, and for millennials specifically, lack of job opportunities coming out of college or jobs that don’t allow them to feel like a valued and respected member of the team can contribute to this. 

What causes employee disengagement?

Whether we like it or not, employees have a life outside of work, and chances are, they care about that life with their family and friends a whole lot more than the 8+ hours a day they spend at the office. That is the life where they are able to create their own goals, set their own priorities, and manage their own work load. 

This "dual life" of employees is the root cause of employee disengagement.

What about a lost employee?

A study done by "The Centre for American Progress" shows that the cost of replacing an employee is clustered between 10 percent and 30 percent of an employee’s annual salary.

Consider the real total cost of losing an employee:

  • Cost of hiring a new person
  • Cost of onboarding a new person
  • Lost productivity
  • Lost engagement
  • Customer service and errors
  • Training cost
  • Cultural impact
  • Impact on other employees

How can employee disengagement be addressed?

Many ways in which you interact with employees will drive their engagement at work, but this needs to be something addressed and reinforced at all levels of the organization.

  1. Engagement starts at the top.
  2. Mission and vision statements are a way of living.
  3. Create harmony between the "dual lives" of the employees.
  4. Communication is key.
  5. Invest in your employees' future careers.

Over the next couple of months, we will expand upon these ideas and dive into how specific areas of talent management can have an impact on your overall employee engagement.  Some specific topics will include:

  • How having mobile talent management tools can increase employee engagement
  • How career paths can encourage and motivate your employees
  • How development plans can keep employees engaged and promote growth
  • How promoting your company culture can lead to a more engaged workforce
  • What is the impact of performance reviews on employee engagement?