Employee engagement is far from being a luxury, says engagement research expert, The Survey Initiative. Investing in employee engagement in this turbulent economic climate is a helpful defence against the additional, and often unpredictable costs of higher staff turnover and recruitment, as well as increased absenteeism and lower productivity.

“It is easy to see employee engagement research as an unnecessary cost which can be cut as part of an overall economy drive. However, engagement is key in retaining employees, and measuring engagement can help to indicate whether people are committed to their work and their employer, or likely to leave,” says The Survey Initiative’s Director, Gary Cattermole. “A strategic investment in making employees feel that they are valued and listened to can also help to reduce the numbers leaving and safeguard business continuity. Analysis of research data can also provide vital clues as to which areas of employee experience need improvement to avoid a higher churn rate.

“As recruitment and training will always result in higher costs than retaining experienced employees, a well-crafted and analysed employee engagement survey can prove highly cost-effective; reaping tangible rewards for future planning; axing it may turn out to be a false economy.”

There is sound evidence to support the theory that investing in employees during troubled periods yields long term benefits and can even help organisations to survive. Employee engagement experts, Engage for Success report that when organisations implement employee engagement initiatives, they see outstanding results. Employees with higher morale stay longer and are more productive, delivering a reported “223% increase in customer retention and a 26% increase in yearly profit.”

Renowned research experts Gallup, also found that greater employee engagement drives growth. They reported, “businesses with higher employee engagement have a more exceptional ability to weather a volatile economy – generating better operating income, net income growth and earnings per share.” They also reported that engaged employees are more willing to pitch in to help steer organisations through more turbulent times.

Says Gary Cattermole, “Engaged employees clearly see their own future wellbeing in a difficult economy as being linked with the survival and growth of the organisation. Loyalty is a genuine business asset and should be two-way. Actively listening, by canvassing opinions and making improvements based on quantifiable data, sends a really positive message as an employer. Unquestionably, employees will work harder and more effectively when they are convinced that their efforts are valued and appreciated.

“We have plenty of historical evidence that organisations that invest in business tools, such as marketing, or research & development, survive the storm of a recession in better shape than those who do not. They frequently emerge stronger, ready to take advantage of the eventual upturn. The evidence is now there that the same applies to employee engagement.”

www.surveyinitiative.co.uk