How to Measure the ROI on Employee Engagement?
Many companies now focus on employee engagement like never before, and this is because there is more awareness about its importance. While many organizations are yet to realize the value of employee engagement, it is now established that organizations can save themselves tremendous losses by engaging their employees. With this in mind, organizations adopt strategies to engage employees, and this entails a wide variety that they can choose according to their business needs.
While you may implement any strategy for improving employee performance, you will need some means of measuring it. Employee engagement software is one of the best ways to measure employee engagement, and this is done through gauging the performance of individual employees. There are many variables that may be applied in this process, and you may customize the software according to your needs.
Place your organization among those that benefit from employee engagement software
Statistics point to the huge importance of employee engagement. It is known that organizations with low engagement scores end up with an operating income that is 32.7 % lower in contrast to organizations with more engaged employees on their staff. Also, organizations that have highly engaged staff members witness growth at the rate of 19.2 % in operating income for a 12-month period.
Furthermore, when organizations leverage employee engagement software, they are more organized, and have a greater chance of boosting their employee engagement levels. This is because they are in a better position to provide feedback to employees in order to help them improve their weaker areas and move from strength to strength. Engaged companies in an organization can grow profits up to 3 times faster in contrast to their competitors. Also, employees who are highly engaged are 87 % less likely to abandon the organization.
- Are twice as loyal than other employees
- Exhibit double productivity
- 200% less likely to leave the organization
Correlation between Employee Engagement and ROI
Loyalty and dedication are two of many other characteristics in employees than can impact the revenue of organizations. A disengaged employee is known to cost an organization around $3,400 for every $10,000 invested in that employee in the shape of annual salary. It is also known that disengaged employees can cost the American economy as much as $350 billion annually, as a result of lost productivity.
As opposed to losing productivity, a survey of 2,000+ U.S. adults revealed that 53% of them intended to remain employed with their current employers for extended periods based on feeling more appreciated at work.
Furthermore, it is known that an unnamed Fortune 100 manufacturing company slashed turnover to 4.1percent, which was a drop from 14.5 percent. The number of absentees also declined to 4.8 percent from 8 percent. These brief statistics speak volumes of the ROI when employees are engaged.
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