While many organizations have for years made steps to improve employee engagement, they haven’t yet managed to fully realize this goal. The reality is that poor workforce engagement continues to be one of the biggest challenges facing organizations in the modern business world.

The most recent statistics by the Gallup Organization indicate that only 13% of the global employee population is engaged. This means that the vast majority of employees aren’t actively involved in efforts of improving their organization.

Why Organizations Need to Do Better

Research has shown that organizations that actively take steps to improve employee engagement see a considerable improvement in overall productivity.

Besides increased productivity, Gallup also found that organizations with effective employee engagement see many other positive results. Through independent research as well as our interaction with organizations all over the world, we have been able to establish some of the most important benefits of improving engagement.

The following are some of the rewards that come with enhancing the overall employee experience within your organization:

1. Improved employee motivation

When employees feel valued by their employer, they often feel more motivated to achieve the best results for their employer. According to a survey carried out by the American Psychological Association with Harris Interactive, employed adults who report feeling valued by their employer are far more likely to feel motivated to be more productive at the workplace (93% vs 33%). In addition, they are more likely to recommend their workplace to others (85% vs. 19%).

2. Improved overall healthcare outcomes

Researchers Kim Cameron and Emma Seppala reported in an article published in the Harvard Business Review the true costs of stress and disengagement among the workforce. While it is often assumed that stress and pressure in the workplace often encourage employees to improve their performance, most of these high-pressure organizations fail to recognize that this comes at a great cost. The researchers noted that the healthcare expenditures at aggressive companies are almost 50% greater than at other organizations.

3. More effective leadership

Effective leaders are those that connect more with their employees and inspire them to do better. When leaders engage more with team members, they help to boost engagement, morale and excitement. Workers listen more to their leaders

when they know that these leaders care and mind about them. Gallup also found that by focusing on employees’ strengths, managers can help improve engagement and even double the average of US workers engaged across the country.

Benefits of employee engagement

In its latest comprehensive engagement study, Gallup outlined the positive results of having an engaged workforce, for these benefits and more consider people consulting to ensure an engaged workforce.

Reduced absenteeism

When there is high employee engagement at the workplace, the employees feel more motivated to show up to work. It is reported that business units with high employee engagement see a 41% reduction in absenteeism.

Reduced turnover rate

Employees in highly engaged workplaces are far more likely to stick with their employers. Improving engagement in high-turnover organizations can help reduce the turnover rate by nearly 24%.

Less theft

Companies with a high level of employee engagement see a 28% reduction in loss of inventory as well as a 40% reduction in quality defects.

Fewer injuries

When employees feel valued and engaged, they are more likely to be mindful of their safety at the workplace. Business units whose engagement scores are in the top quartile see a significant reduction in workplace accidents of almost 70%.

Improved customer scores/sales

Business units that have a high level of engagement see a 20% increase in sales as well as 10% higher customer scores than those with lower employee engagement.

Improved productivity/profitability

Workgroups with engagement scores in the top quartile are more motivated and productive. They typically achieve 17% higher productivity rate as well as 21% higher profitability.