Studies have repeatedly shown that having highly engaged workers contributes to better financial performance for organizations.
Studies have repeatedly shown that having highly engaged workers contributes to better financial performance for organizations. Motivated personnel allow firms to remain on the cutting edge of their industries with increased efficiency and innovation. The recent State of American Workplace survey by Gallup showed just how influential employee engagement can be to business success.
"Organizations with an average of 9.3 engaged employees for every actively disengaged employee in 2010-2011 experienced 147 percent higher earnings per share (EPS) compared with their competition in 2011-2012," the report stated. "In contrast, those with an average of 2.6 engaged employees for every actively disengaged employee experienced 2 percent lower EPS compared with their competition during that same time period."
Unfortunately, the survey found that just 30 percent of Americans are engaged by their jobs. Businesses need to develop more effective strategies for energizing staff members. Employee reward and recognition programs are essential tools for creating an exciting, supportive culture that contributes to high levels of engagement. Companies can see an immediate impact in their performance by implementing the right incentive programs.
Forbes noted that some groups of workers are more likely to be engaged than others. The source cited a Gallup study, which revealed that women and older workers are more likely to report being satisfied with their jobs. This means that firms may see greater benefits by targeting reward programs to staff members who have been with their organization just a few years in order to drive engagement among groups that are less likely to be satisfied with their positions.
Focus on career development to boost engagement
Personnel who have been with a company for a long time have often found a position that fits their personality, skills and experience, contributing to their higher levels of engagement. Businesses should promote potential career development for all employees. Recognition programs can be used as a way to build prestige and respect among workers. Taking time to acknowledge specific milestones or individuals' contributions can keep staff members motivated to pursue new opportunities.
Organizations that focus on career development often see lower turnover, which contributes to higher productivity and lower costs. A study by Rentokil Initial and Hay Group found that a 1 percent higher retention rate creates a 3 percent lift in worker engagement. This allows businesses to maintain their performance even through tough economic times, according to the source.
Employee reward recognition programs can be effective tools in encouraging personnel to consider long-term goals. Incentives can be created to reward the development of new skills or certifications and even build respect among teams. By focusing on helping workers achieve their personal goals, businesses can see improvement in their overall performance.