The Effects Of Employee Engagement On Your Bottom Line

In business, people are key. Get it wrong and you’re going to be dealing with low morale, poor levels of motivation and higher levels of unplanned absence. And you will often be lacking that creative spark – particularly when it comes to interacting with your customers.

Employee engagement is all about building a workplace culture in which your staff give their best each day, committed to their organisation’s goals and values, motivated to contribute to organisational success, with an enhanced sense of their own well-being.

While Employee Engagement can be a confusing topic, it doesn’t have to be a mystery. In this blog, we’ll take you through the effects it has on your bottom line and how best to create the conditions that promote higher engagement.

The Positive/Negative Effects Of Employee Engagement On Your Bottom Line

Engaged companies consistently outperform their competition in a number of categories, including profits, productivity, and turnover. Why?

First, let’s get the negative out the way. When your workers are unhappy and unproductive, you’re obviously losing out with that employee. However, their negativity also rubs off on the people around them, turning potentially engaged employees into non-engaged workers. Like the ripples you get when you drop a stone into water, those most affected are the people closest but the effects are felt further away too.

So, enough of the negativity. Employee Engagement also has a wealth of positive benefits that ultimately filter through to your business bottom line.

When you have an environment where your employees are engaged by their work, you’ll notice:

  • Higher levels of productivity
  • Better retention rates of your top talent
  • Your staff are more present
  • More focused
  • More energised
  • With an increased sense of health and well-being

When sick leave reduces, accident rates decline, conflicts and grievances go down, productivity increases, and staff retention rates go up. This has a direct effect on the day-to-day operations of your business. Less sick leave and accidents mean employees are spending more time doing their jobs without interruptions.

Staff Retention has a massive influence on your business bottom line. If you lose your key people, it means taking time to find a replacement and training them up – a lot of wasted time and money, compared to what keeping an engaged employee will offer your business.

Good luck asking disengaged employees to go the extra mile! Engaged staff, on the other hand, will go the extra mile because they feel a strong emotional connection to the organisation.




They want their businesses to succeed because they identify with their company’s mission, purpose, or values on a personal level. We’ll say that again because it’s so crucial:

Engaged employees go that extra mile because success is personal for them.

When your employees feel pride and loyalty working for your business, they become a great advocate for the organisation to your clients, users and customers. Instead of that negative ripple, you get a much stronger positive ripple that is externally felt by the people that use your products or service, making them more likely to want to come back again and again. Who wouldn’t want to go back to the people who clearly love their jobs and always go the extra mile?!

How To Increase Your Employees Engagement

“Ok great, so how do I engage my employees?!”

There are four key ingredients for a happier, more motivated and more productive workforce:

  • Line managers who empower rather than control their staff
  • Values that are lived and not just spoken, leading to a sense of trust and integrity
  • Employees who have the chance to voice their views and concerns
  • Leaders with a vision who value how individuals contribute

That’s the simple answer but for the engaged readers, we’ll break it down a bit further:

  1. Arming your employees with a sense of purpose is critical to creating the emotional bond between your employees and their work, and thus boosting their engagement.
  2. Many organisations announce their core values and end up not following them. This sets the precedent that it’s OK for employees to do the same. Most companies make the mistake of relying too much on email, which can be impersonal and easy to ignore. Leaders have to set the tone with their actions, not a weekly email blast.
  3. Employee engagement is built on trust, integrity, two-way commitment and communication between an organisation and its members. That means staff need to be able to voice their opinion without fear of backlash.
  4. In order to become engaged, employees need to know that their work matters, that it is valued. To achieve this, employees need well-defined roles. Without this framework, employers risk confusion, disengagement, and burnout. You can boil this down to the communication skills of the manager and how well they communicate tasks to their team.

The emotional component of communication speaks to our basic human need to feel valued. When employees receive proper, positive, and constructive communication, they feel in the loop and included.

Quality communication like this can’t just be a one-time occurrence. It takes consistent work. It must be a long-term strategy ingrained in your culture and the way you do business.



Your Staff Crave Engagement Too

Nothing is more frustrating for an employee than feeling like the work he or she is doing doesn’t matter. Not only do business owners want engaged staff, the individuals themselves want to be engaged! They crave it!

The employees who have good quality jobs and are managed well, will not only be happier, healthier and more fulfilled, but are also more likely to drive productivity, better products or services, and innovation. This mutual gains view of motivation and people management lies at the heart of employee engagement.

Next Steps

Ask yourself, “Are my employees engaged?” with these 3 questions:

  1. Are your employees more likely to accept responsibility for their mistakes or pass the blame to others?
  2. Are your employees likely to recommend working at your company to a friend?
  3. Do you observe any common bad behaviours, like employees leaving early?

It’s pretty clear what answers you want and, usually, one person will spring to mind but if these resonate with the majority of your workforce, you need to face the truth – your staff aren’t engaged.

With the right knowledge, the right tools, and – most importantly – the proper mindset, improving your employee engagement can be a powerful way to transform your organisation and improve your bottom line.

At Core Process, we partner with The Engagement Multiplier, a tool to measure staff engagement every 90 days. With ongoing feedback we can help businesses improve their employees engagement:



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