If one were to ask a CEO or business owner what is more valuable: engaged employees or engaged customers, he would probably choose the latter. However, studies reveal that it is good employees that ultimately generate more sales for a company. This may sound surprising, but the logic to support the statement is quite simple: every good business starts with good employees who are capable of attracting loyal customers. It is impossible to grow a business if there is no support from the staff.
According to BusinessWeek, employees represent the fulcrum between output and input: they have a tremendous effect on the overall performance of a company, including profitability and sales. It is possible for a great employee to attract hundreds of customers, while a bad one could drive away business. In other words, making sure that an employee is completely immersed in his professional activities is vital for a business. But before we discuss the strategy for attracting good employees, let’s take a look at a few key studies to support the importance of employee engagement:
Ask any internal communicator or sensible business person about his main focus for the following year, and he will probably mention something about the impact of communications on business profitability.
- Communication leads to performance: A Towers Watson’s Change & Communication ROI Study demonstrates that companies which are capable of effectively communicating with employees and changing management are 5 times more likely to become high-performing than those who have communication problems.
- Employee Engagement Results in Better Profitability: Aon Hewitt’s 2013 “Trends in Global Employee Engagement report” also shows that employee engagement leads to 0.6 percent growth in sales for every one percent increase. This may not sound like a lot, but what if the growths were over 10 percent. If you were to apply this logic to a 10 billion dollar company, with an operating margin of 15% and gross margin of 55% you would have 40 million dollars profit for every one percent employee engagement.
- Engaged employees work harder & have better results: without a doubt the most obvious positive outcome of engaged employees is better results. The Temkin Group conducted a study which proves that roughly 75% of companies with strong financial results have high to moderate engagement levels. A little under 47% of companies with average results report the same level of engagement from employees. In addition to these facts, Temkin also says that 96% of highly engaged employees do their best at work, as opposed to only 71% of disengaged individuals.
In conclusion, employee engagement is vital for the success of a company. What many business owners do not know is the fact that hiring is a lot like sales: in order to attract good employees you have to make a good pitch. In other words, wage and non-wage benefits should be attractive enough to attract qualified individuals. The competition for good employees between companies is becoming fierce. A good idea would be to do a survey for qualified individuals to determine what their hopes from a job are.
Another idea would be to search for qualified employees on websites that cherish their partners and groups of people. For example, this site, makes sure that everyone in the industry finds out about amazing individuals.
Lastly, a company should learn how to retain good employees. Exactly as you qualify customers through the sales funnel, you have to qualify the best employees though the hiring process. Studies show that employees who are satisfied with working conditions, and have a good relationship with their hire-ups, are more likely to perform well.