It Does Make A Difference To The Bottom Line
Many employers are still wary about how Employee Engagement truly affects a business and ultimately its bottom line. However, many comprehensive research studies have been carried out and show that there is a significant impact and CEO’s of companies really need to start listening.
The Great Place to Work® Institute Europe carries out yearly research, which analyses a number of key business metrics of the companies that make the “100 Best Workplaces in Europe” list. As you might expect, the best outperform their peers. When they compared the “100 Best” with the 100 companies that participated in the 2009 study but returned the least positive survey results (“100 Lower”), the best companies outperformed in a number of areas, including:
- The 100 Best companies grew at twice the pace of the 100 Lower companies
- Absenteeism was 70% higher at the 100 Lower companies
- The 100 Best companies received twice as many job applications
- The 100 Best companies developed more new products
- The 100 Best companies had lower voluntary turnover
- The 100 Best companies increased revenue by 23% but staff by only 11%
How Can Your Company Enjoy Such Business Benefits?
Focus on your employer brand. Begin by being both worthy and recognised as an employer of choice.
What is being worthy? Well, being worthy means doing those things to ensure that employees are set up to be successful by worthy leaders who:
- Set a clear and purposeful vision
- Foster two-way communication
- Train and develop their employees
- Respect and recognize their employees
- Are fair in terms of pay, benefits and promotions
- Create an environment based on trust
What Is An Engaged Employee?
An engaged employee can be defined as one who is truly committed, emotionally and intellectually to an organisation.
AON’s model measures engagement based on whether employees:
- Speak positively about the organisation to others (say)
- Have an intense desire to be part of the organisation (stay)
- Are willing to exert discretionary effort (strive) to contribute to its overall success
Employee brand engagement is the positive emotional connection between employees and their company through the brand, and anisation.
The savvy brand clearly understands the necessity of aligning its business goals with a culture of engaged and upskilled employees. So can the Marketeers with their sophisticated methods that keep their products and organisations in pole position, work with their HR peers to transfer their knowledge and working techniques so that organisations become both customer and employee-centric?
And for those forward thinking, employee-centric companies already out there, who should own the Employee brand? Is it the HR, Marketing or Internal Communications Directors? Or should companies start to consider roles such as a Head of Employee Brand, a position responsible for tying all three areas together, ensuring true alignment and acting as the glue that makes organisational success stick?