How staff engagement affects your bottom line

Last updated:
February 15, 2021
August 16, 2022
min read
Elena Adler
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Employee engagement had, for long, been viewed as an HR affair. However, organizations have adopted it as a business strategy because its huge impact on profits and productivity is undeniable.

You may wonder what this employee engagement is. This is the approach employers use to improve employees' commitment to the company's goals and ensure that they stay motivated to work towards the company's success.

The strategy also seeks to increase an employee's sense of well-being while working with the organization.

How employee engagement affects your bottom line

The result of employing employee engagement is achieving happy individuals who are committed, motivated, and satisfied with the workplace.

That means that you will deal with low absenteeism, and the employees will work towards increasing productivity and profits. Engaged employees are also most likely to stick with you no matter what. You will enjoy a low employee turnover rate, and your employees will work with fewer mistakes.

Mistakes ultimately cost organizations a lot of money. Happy employees will also put their efforts towards customer satisfaction. And, a satisfied customer will keep coming. Also, good customer service is essential in attracting new customers for increased sales and profits.

To have a clear picture of this, you must understand how employee engagement works.

1. Allowing flexible schedules breeds commitment

One way to increase employee engagement is to help them attain a more balanced work-life balance. You can do this by allowing flexible working schedules so that the employees can have time for their commitments.

For instance, an individual who lives in Los Angeles, a flexible schedule would mean popping in a coworking space at his or her convenient time, have some hours of work then carry out a few non-work duties.

Not being confined to a 9-5 traditional work schedule can significantly improve employees' focus, commitment, and productivity. All these boil down to increased net profits.

2. Giving clear expectations and providing necessary tools increases passion

A company that seeks to drive employee engagement must set clear expectations with the employees. They have to be ready to equip them with the necessary tools that ensure they are performing at their optimal levels.

Employees who are offered the above find a reason to show up for work every day. And not just showing up, they carry themselves with the passion, energy, and purpose to continue working towards the company's success.

With almost zero percent absenteeism, you can be sure of maximum productivity and hence profits.

3. Recognizing employees creates a sense of purpose

Employees need to feel valued. One way to do this is by recognizing the work they do for the organization.

It is important to offer honest feedback on employees' work and offer help to improve on areas of weaknesses. Nevertheless, you should never miss an opportunity to tell an employee how valuable their work is in achieving the organization's overall goals.

Praise an outstanding employee and give valuable perks and credit where it is due. This way, your employees will find a sense of purpose that can renew their commitment to you.

You agree that committed employees work at their best to increase the company's profits.

4. Showing empathy increases talents retention

Besides being your subordinates, your employees are humans complete with an emotional side.

They will have low days probably because of personal problems or issues they are dealing with. They expect you to show them empathy at such times.

Being mindful of their emotions will go a long way in communicating their value to the company. On the other hand, employees who see their employer being empathetic are less likely to leave the company.

While the effect of this to the bottom line is not obvious, you will appreciate saving on training fees with increased talent retention.

5. An ideal workplace increases commitment and loyalty

The modern employee has clear characteristics of an ideal workplace. Among them is a workplace that invests in employees' general wellness.

Focusing on employees' wellness can include;

  • Encouraging regular breaks from work to avoid fatigue, back, and neck pain. This can be done by creating break out areas in the office. This also has an additional health benefit in that employees get to network with colleagues and share on different issues. This helps them in reducing stress and improving mental health.
  • Investing in a holistic wellness program that will help employees take up healthy lifestyles and make better choices. This can result in healthy, happy, and productive employees.

If you qualify to be rated an ideal workplace by your employees, then you can be sure that they will stick with you. That means loyalty, commitment, and increased profits. Constantly conduct surveys to check how your employees rate you. A good question to ask is how likely they are to recommend another person to work for you.

6. Good manager-employee relationship reduces employee turnover

The majority of the people who quit their jobs don't do so because of their position or compensation. Most quit bad managers. It is extremely difficult to work under someone who you have an unhealthy relationship with. Again, this boils down to employees' happiness and wellness.

A toxic relationship with a manager or unnecessary pressures is enough to cause mental stress, making employees less committed and underperforming.

Every organization requires leaders who can stand up for their teams. If the top management demands the implementation of some policies, it is wise to question some before forcing them down on the employees.

It is also important to create a respectful relationship with the employees. Talking down to them will make them feel inferior and drain them of the passion for working for the company.

Micromanaging doesn't always lead to improved productivity. On the contrary, it drives out morale, kills creativity, and makes employees feel suffocated. It is important to steer clear of constantly monitoring employees. Cultivate a sense of trust by letting them work through a project without too much pestering.

Having leaders who are focused on guiding employees rather than ruling on them will highly make any employee look forward to working every single day.

7. Allowing career growth increases commitment

Apart from a few people who work for the perks, most employees' dream is to grow career-wise and personally constantly. If you put such people in a place where there is no room for improvement, the risk of disengagement is much higher.

Companies who want to maintain a low employee turnover need to create opportunities for career advancement. This could mean allowing them time to enroll in classes and to study. An organization can also resolve to pay for its career development courses or invest in in-house training programs.

In addition, promoting from within goes a long way in making employees put in more effort by giving them hope that a future position could be theirs. Even if they don't get promoted, knowing that where they are today in their career is a deliberate effort by which you increase loyalty and commitment.


As seen from the above, employee engagement is as easy as focusing on the wellness of your human capital. These are, by far, your most prized asset. Taking care of them will help them thrive individually, and this will then be reciprocated to the organization. They will work to increase revenue and reduce expenditure, which will have a positive effect on the bottom line.

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