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Why Investing in Employee Engagement Makes Sense?



Employees who feel unhappy and stressed at work tend to be less productive, which negatively impacts the organization’s performance and efficiencyHence, investing in employee engagement is critical for organizations to ensure business growth and profitability.

Why Employee Engagement Matters?

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Employee engagement has become a key factor in building a highly motivated workforce.

An engaged workforce is known to outperform a workforce with low engagement levels by a significant margin.

It is because engaged employees are more likely to show higher commitment and dedication to organizational growth and success.

Such employees tend to make every effort to maximize their productivity, minimize absenteeism, and work towards inspiring and motivating their coworkers to improve their performance continually.

Moreover, having an engaged workforce also helps in enhancing the employer brand value of the organizations.

It makes it easier for these organizations to attract the industry’s most skilled and competent candidates.

Why Investing in Employee Engagement Makes Sense for Organizations?

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When employees have higher levels of engagement, they develop a sense of pride and happiness in their jobs.

There is no denying the fact that employee engagement can offer a wide range of benefits to organizations.

Thus, investing in employee engagement is critical for organizations to improve their growth and bottomline.

Discussed below are a few of the key reasons why investing in employee engagement makes sense:

Why Investing in Employee Engagement Makes Sense?

1. Reduction in Employee Turnover

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A low engagement level is one of the primary reasons employees seek job options elsewhere.

An increase in the number of such employees often results in higher turnover rates and this can have seriously damaging consequences for the organization.

Reducing turnover rates can enhance employee motivation and minimize workflow disruptions and financial losses.

2. Improves Organizational Culture

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Highly engaged employees are passionate about their work and dedicated to the organization’s growth.

They are willing to share their experience and skills to help their coworkers succeed in their assigned tasks.

Such employees make concerted efforts to create a pleasant and relaxed overall work environment.

They understand that working in a stress-free and enjoyable environment significantly improves employee motivation levels.

This helps in improving the overall work culture and ensures better coordination and cooperation between colleagues.

3. Lower Absenteeism within the Workforce

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When the workforce is highly engaged, employees are less likely to miss work for trivial reasons. Such employees feel responsible for fulfilling their roles and responsibilities effectively and promptly.

This motivates them enough to come to work regularly and ensures that their teams or their organization do not have to bear the consequences of their absenteeism.

Such employees even act as a source of inspiration for other workforce members. They motivate their peers to enhance their dedication and performance levels, enabling them to fulfill organizational goals promptly.

4. Boosts Workforce Productivity

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As mentioned, highly engaged workforce members prioritize their work above everything else. They thus give their best to every task and responsibility.

This ensures that they are consistently productive and deeply committed to the growth and success of their organization.

Such employees tend to seek an element of fun, challenge, and excitement in every task assigned to them.

Their sole objective is to complete the work to the highest quality standards. Thus, they are responsible for significantly boosting employee productivity.

5. Drives Innovation and Creativity

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Employees with higher engagement levels also tend to have higher happiness and satisfaction levels at the workplace.

They are passionate about doing their work correctly and according to the desired quality standards, which enhances their self-worth.

Such employees are constantly seeking more effective and simpler ways to solve problems and improve the process of completing various tasks.

They are thus responsible for driving innovation and creativity within the workforce.

Bottom-line

Given the rapidly increasing competitive levels in the industry, organizations can no longer afford to not invest in employee engagement initiatives. Most experts consider it to be one of the most critical contributing factors for ensuring sustained business growth and building competitive advantage.

Sagar Chaudhuri

Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of experience in both corporate and entrepreneurial settings. Previously, Sagar has held leadership roles at companies including Genpact, Infosys, and ICICI Bank. He has an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Connect on LinkedIn

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HiFives is a global employee rewards, recognition and engagement SaaS platform that enables organizations to digitize, automate and transform their employee experience. It is used by 100+ large enterprises, small businesses and startups in manufacturing, retail, technology, financial services and media, across 25+ countries.