The bottom-line impact of creating a positive employee experience
Creating – and then maintaining – a positive employee experience is no simple task, but it is achievable if you focus on building an entire culture around it. What’s harder to quantify is whether it will improve the business’s bottom line. The short answer: it absolutely will. But how?
Happy staff = greater profits
There’s no doubt that unhappy employees are more disengaged, which can have a negative effect on profits – in Australia, disengaged employees cost businesses approximately $70 billion every year.
But the opposite is also true: happy staff are more engaged, and high engagement leads to greater profits. That’s why smart companies invest in retaining their staff. It’s no wonder, especially because compared to investing a modest amount into an employee-retention strategy, the cost of replacing an employee can skyrocket to 150% of their salary.
Here are some facts about engaging your team for a positive impact on the bottom line:
- 83% of employees who are challenged regularly and given more opportunities to grow are more likely to stay with the company.
- Employee engagement programs can boost an organisation’s profits by $2,400 per employee per year.
- Employees who say their voices are heard in the workplace are 4.6 times more empowered to perform their best work.
Build a work environment that makes your employees want to stay
This feeds into the idea of creating a complete ‘culture’ around the employee experience, and it relates to both employees and the management team.
The foundations of success must be structured, which is why it’s important to provide clear expectations to employees. Outline the company’s vision, goals, values and expected behaviours, and make sure all policies and communication expectations (email, phone, report formats, etc.) are easy to understand and accessible.
Once the foundation is set, you can focus on what employees want most from their managers: recognition and support. What’s crucial at this stage is showing your team that you – and the business as a whole – care about their wellbeing and their future. Being proud of your people and committing to developing their skills is a sure-fire way to keep the best employees around long-term.
Consolidation frees up funds
Some people believe attrition and turnover rates are the same thing, but they are actually quite different. There are also good and bad forms attrition – with losing a star employee due to poor management considered ‘bad’ attrition.
Attrition simply means a reduction in your team due to people retiring or the business consolidating certain roles. A healthy business is one that keeps its best people happy and always looks to eliminate waste. So low attrition means less money spent on hiring and training, and more on investing in the business and its team.
Long-term employees provide more value than you may think
It’s a common misconception that long-term employees must be (a) costing the company money because their salary has continued to rise over the years, and (b) disengaged because they have been doing the same tasks for years. But this couldn’t be further from the truth.
Long-term employees have proven their loyalty by sticking with the business through its highs and lows. More than that, they understand the market better than most, and they have built strong business relationships over the years – tapping into this knowledge base can do wonders for the company’s bottom line.
Rather than pushing long-term employees out, the most successful businesses focus on retaining them. They are knowledgeable, capable and have seen how the company has evolved over the years – such a valuable commodity is worth far more than cheap new labour.
It’s all about communication
Above all else, a positive employee experience is defined within a work environment that communicates well. To be engaged in their work, you must first engage with your team. That means in-person dialogue with ongoing feedback. It also means creating an engaging routine built on a system of short-term and long-term goals. Recognition and rewards software can see employees challenge themselves on a daily basis, improving productivity, wellbeing and engagement levels in the process.
‘Communication’ can mean many things – but when it comes to improving the company’s bottom line, the best communication involves listening, observing, evaluating, trusting and appreciating every member of your team.
Redii provides recognition and rewards programs to facilitate communication with your employees and promote a positive employee experience. Request a demo today!