What is Employee Engagement?
Posted on June 6, 2013
Employee engagement has generated a lot of buzz in recent years, and organizations of all sizes are trying to understand and achieve it. But what exactly is employee engagement and what are strategies that can move the needle? Karen Crone, Paycor’s Chief Human Resources Officer, discussed this hot topic in a recent webinar.
According to Karen, “Employee engagement is not magic—it’s about everyday interactions that show your employees you care about them, and that you are in a career partnership with them.” She defined employee engagement as being centered on three key factors:
* Employees speaking positively about your organization
* Employees staying at your organization
* Employees giving discretionary effort, or “going the extra mile”
Unfortunately, all three of these factors have decreased since 2009, according to a study by Aon Hewitt. Even more alarming is the fact that only one out of three employees is highly engaged at work. The other two thirds are either not engaged (52) or actively disengaged (19), meaning they are emotionally disconnected from their work, less productive and could be doing more harm than good.
When employees are not engaged, organizations suffer. A Towers Watson study found that companies with high levels of employee engagement see a 19% increase in operating income, while those with low levels of employee engagement see a 33% decrease in income. And when those disengaged employees leave your company, you face increased turnover rates with an average cost of $20,000 per employee.
Many employers underestimate the importance of employee engagement, but it has a significant impact on the bottom line. So how can you drive employee engagement and minimize these costs? Check out Karen’s webinar, Five Ways to Increase Employee Engagement. To learn more about how Paycor can help you engage your employees and lower the financial impact of disengaged employees, contact us today.
Sources: Aon Hewitt, Gallup, Towers Watson, Lendio