Businesses that want to see increased revenue or stronger performance should focus on engaging employees more effectively.
Dedicated workers can help their organizations achieve long-term goals. Businesses that want to see increased revenue or stronger performance should focus on engaging employees more effectively.
A new study by Aon Hewitt found a strong correlation between company performance and employee engagement. The study looked at 94 global organizations from 2008 to 2012 and noticed that firms with increased levels of engaged workers saw strong sales growth. On average, the firms generated a 0.6 percent increase in revenue for each additional percentage point of engaged employees.
"Our analysis concludes that companies that managed higher employee engagement relative to their peers throughout the economic downturn are now seeing dramatic, positive impacts to their revenue growth," said Ken Oehler, Aon Hewitt 's Global Engagement practice leader.
Engaged workers contribute to lower turnover, boost innovation and deliver professional service to customers to help build brand loyalty. Unfortunately, a separate study by Aon Hewitt found that engagement levels among North American companies were the lowest in five years. Canada Newswire reports that the Aon Hewitt's Global Engagement Report shows a 1 percent drop in employee engagement in North America in 2012. U.S. workers saw a significant decline in engagement, falling 3 percentage points, according to the study.
Reward programs help engage workers
There are some simple steps that companies can take to increase the satisfaction and engagement of their staff members. Employee reward programs give managers the tools to improve communication, collaboration and confidence among team members. This helps build a supportive environment where workers can be engaged and motivated.
Business News Daily reports that one of the most effective things a manager can say to boost the performance of staff is "thank you." Acknowledging the contributions of individuals allows everyone on the team to know their efforts are appreciated and noticed. This encourages them to try harder to accomplish goals and make projects a success. Reward programs give companies the tools to explain why a "thank you" is due, which is a key part to engaging employees, according to the source.
Recognition programs help improve communication and trust between management and frontline employees. These factors contribute to a work environment that generates high engagement levels. When employees feel empowered to address customer concerns or solve problems, they are more likely to close sales and generate positive experiences for buyers. The better the customer experience, the easier it is for companies to capture repeat sales and drive revenue growth.