Employee engagement is significant for startups; here's why
No matter how intelligent the founders or business owners of an organization are, they only have 24 hours and can’t do all the work themselves therefore, they need to hire people of various skill sets and roles who can work for the organization.
So, ultimately, the success or failure of a business is dependent more on the employees than the founders and therefore employee engagement is extremely critical for startups.
Let’s look at the top 3 reasons why employee engagement is extremely important for startups.
Increase in employee retention
Multiple research studies and surveys have proven that the employees who feel happy and engaged are less likely to quit their jobs, and they tend to stay with the companies for longer durations.
On the other hand, employees who feel disconnected from their organizations are more likely to quit their jobs within a short duration, and your best employees leaving your company can be catastrophic for your small business.
So, if your company is facing low retention rates, you need to think about the reasons why your employees aren’t engaged. Because when your best employees leave the company, it creates a domino effect and other employees also start leaving behind them.
When an employee leaves your company, you will end up spending around 15-20 percent of his salary to find another employee to replace him. And the new person might take at least 1 year to reach the same level of productivity as the previous employee.
Therefore, do everything you can, to keep your employees engaged, motivated and happy as that will save you a lot of cost down the line.
Increase in customer retention
When your employees are engaged and happy, it will show up in their interactions with your customers.
When employees are motivated, they take better care of customers and go beyond the usual stuff to ensure the success of your customers.
They will provide better support to your customers, will be more empathetic to them, and will respond to them promptly.
All such things result in your customers getting delighted and staying with your business for a longer-term. Even if they find a better product than yours, they might continue to work with your company if they love your team and the support provided by them.
In a nutshell, you just take care of your employees, and they will take care of your customers and your business.
Increase in productivity and business growth
According to a Gallup report, engaged employees are 20 percent more productive than non-engaged employees.
Gallup analyzed 263 research studies in 34 countries to understand how employee engagement affects performance in areas such as productivity, profitability, turnover, quality of output, absenteeism, and customer ratings.
They observed that the organizations with the highest scores in employee engagement had success rates as high as 4 times when compared to companies that had scored the lowest in employee engagement.
Similar stats have come up in various other research studies. Many reports suggest that high employee engagement can increase the sales of a business by double digits.
When employees are happy and motivated, they naturally tend to work hard with the best interest of the organization in their minds, and hearts and that has a positive impact on almost everything – sales, profitability, productivity, teamwork, customer satisfaction, etc.
Employees are the heart and soul of all organizations, and they will give their best when they are happy and motivated. So, you should give a very high priority to employee engagement and make sure that your employees enjoy working in your company.
Because that is when the magic happens.
(Samira Rao,Co-founder, Finjinn-Salary & compliance payments for small businesses)
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