The costs of disengaged employees and how employee support can help
Employee engagement matters
Think about the companies where most people would love to work – it might be Google, 3M, or Intel. They are world-class organisations known for excellence in product innovation, service quality, and industry performance. But these companies also share a reputation for developing their employees and investing in employee engagement to drive their business.
Companies that invest in employee engagement can achieve real long term advantages in business outcomes such as increased productivity, innovation, and profitability. Companies with high employee engagement also experience much lower rates of turnover and absenteeism. Intel, a company known for providing great employee support in health and work-life balance, has a turnover rate of 3% against its industry turnover rate of 21%. Based on a conservative estimate, Intel already saves over $500 million dollars per annum relative to its industry.
Actively engaged employees are committed, passionate, and fully aware about their work – they will strive to perform at their best on a personal level. Engaged employees will care about the company’s achievements and contribute beyond expectations. But what happens when your employees are disengaged?
Disengagement is a pervasive concern for many organisations
More than 80% of employees are not engaged or actively disengaged in the average Australian company. Disengaged employees really don’t enjoy their work – they feel minimal commitment to the business, perform to minimum requirements, and often take sick leave. As a result, companies with low employee engagement deal with high rates of absenteeism, presenteeism, and turnover. Each disengaged employee can cost a company more than $14,000 per annum in lost productivity.
Companies with low employee engagement are also unlikely to achieve any lasting competitive advantage in performance and innovation. Current research indicates that top global companies with low employee engagement often experience declines in operating income and earnings per share over time. Companies that do not invest in employee engagement are much less likely to be successful in the long term.
So how can you increase employee engagement?
Employee support is the critical factor
Employees want to be engaged at work, and it is about providing the right work environment. A key global driver of employee engagement is where anorganisation can demonstrate genuine support for their employees.
Most employees will experience work or personal issues at some point in time that impacts on their ability to perform. When these issues are not resolved, employees can quickly become distracted and disengaged. Although many employers and managers find it challenging to respond to these situations, employee support is about perceiving, listening, and responding to work or personal issues experienced by your employees. It indicates to your employees that they are working in a supportive environment.
Making employee support part of core business has the immediate benefit of improving employee performance. More importantly, employee support can drive long term improvement in your employee engagement and business outcomes. If you would like more information about employee support or advice regarding Livingstones Employee Support Service (ESS), please contact Mike Allan (Associate Director) on (07) 3371 0153.
