October 18, 2019

5 Reasons Why Employee Engagement Matters

Currently, the engagement rate of U.S. employees is only 34%. In this article, we discuss five reasons why businesses should work to change this statistic.

By Jane Garfinkel - Review Response Specialist

Businesses understand the importance of engaging their customers, but what about their employees? Currently, the engagement rate of U.S. employees is only 34%. Don’t let that statistic fool you: employee engagement matters. In this article, we discuss five reasons to focus on your employees this quarter. 

1. Increased production

When employees are committed to their jobs they are inspired to do their best. They are more creative, more innovative, and more communicative. It shouldn’t be a surprise then that, according to Gallup research, engaged teams result in a 17% improvement in productivity. By putting effort into ensuring your employees are invested in their work, you will see a direct reflection in their output. 

2. Higher retention rates

If employees find meaning in their work as well as their professional relationships, they will be much less likely to seek meaning at a different company. To put it simply, engaged employees don’t quit unexpectedly, which saves you the time and effort of hiring new employees on a regular basis. As well, finding a replacement is a huge financial burden and can cost anywhere from one-half to two times the employee’s annual salary. Finally, there is an obvious benefit to retaining high-performing employees for as long as possible.

3. Happier customers

Customers love working with people who enjoy their jobs. They also like being able to return to a store and see the same employees they’ve had positive experiences with in the past. This could be why a direct connection exists between an engaged workforce and satisfied customers. A recent study by Glassdoor found that for every 1-star improvement in an employer’s Glassdoor company rating out of five, there was a 1.3-point increase in customer satisfaction out of 100. In fact, “happy customers are the greatest measure of workforce performance and value.” Engaged employees mean satisfied customers.

4. Improved marketing efforts

Even outside of business hours, an engaged workforce will benefit your bottom line. Employees who feel valued are more likely to advocate for their company, encouraging their friends to visit their store or purchase the products they sell. They also will be more willing to follow their company on social media, participate in online ad campaigns, and share marketing content on their own page. All together, engaged employees represent their company in their free time, potentially bringing in new customers. 

5. Better financial health

For all the reasons listed above and more, it’s only logical that a committed team plays a huge role in business finances. According to Gallup research, companies with higher levels of employee engagement also beat their competitors in terms of business success. Further, an engaged workforce results in a 20% increase in sales. If your numbers are lagging, check in with your staff and make sure they are receiving what they need to perform their best.  

A business can’t exist without customers, but it can’t thrive without employees. When you’re brainstorming ways your company can improve, consider whether your team is truly engaged with their work. They could be the key to hitting your next big goal. 

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Jane Garfinkel

I’m a New Jersey native who joined the Widewail team during my brief stint in Burlington. Now living in Jersey City, I currently serve as the Response Team Lead and Content Specialist. My background is in writing and my work has been published by Thrillist, Reductress, McSweeneys, The Rumpus, and more. I occasionally update my own blog No Meat, Some Potatoes, and in my free time I hang out with my dog Jake.

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