Based on the current business environment it really has become an employer’s market.
Employees are much less likely to change roles or companies based on fewer job opportunities and fear of the unknown. Many employees have made the decision that there is more security staying in their current role even if their company made some cutbacks. Employers currently have the upper hand but that won’t last for long. As the business environment continues to achieve positive traction and new opportunities present themselves, disengaged employees will begin looking elsewhere. How many employees in your company have mentally quit and are just waiting for the right opportunity to present itself? We would recommend looking at three important issues: What is employee disengagement costing you today? Can your company afford an exodus of employees when the job market opens up? AND, what can you do to repair the disengagement?
What does employee engagement mean? “Engagement means that the employee is on board with the goals, mission, and values. Engaged employees are ready to serve customers in a manner that exceeds customers’ expectations. An engaged employee is excited about their functional role in the business, and is ready to give extra for the good of the business. An engaged employee has the training and resources to perform their job with pride and excellence.” (Excerpt taken from an unauthored article entitled Are Your Employees Engaged? A Guideline For Business Management)
Having engaged employees within your organization is essential in building a loyal customer base, which ultimately drives successful business results. Without customers there are no results. Therefore, if a percentage of your employee population is disengaged, what is it costing your business? A ‘point of connection’ is created every time your employees interact with a customer. Engaged employees are committed to ensure every ‘point of connection’ exceeds a customer’s expectation. Exceeding customers’ expectations creates loyalty and loyal customers create results. Our research shows that the financial difference between creating loyal customers as opposed to satisfied customers can be as much as an 87% to 99% increase in revenue over the life of a loyal customer. Disengaged employees may not even be helping your organization maintain satisfied customers.
A recent survey conducted by Kelton Research indicated five key areas besides compensation employees are searching for in this employer’s market. The survey asked the question “Aside from compensation, what would motivate you to stay in your current position?”
- 56% said: Being appreciated
- 51% said: A good manager I enjoy working with
- 46% said: Liking and respecting my co-workers
- 46% said: The opportunity to advance my career
- 45% said: The opportunity to learn and develop my skills
Not every solution requires money. Investing time, effort, and energy in your employees will make a significant difference in their level of engagement. Being appreciated and working with a good manager are no cost/low cost solutions that will make a significant impact on business results. Take time to recognize employee contributions, ask for input and ideas, include them in new projects, and be accessible. You may be forced to put out the daily fire but while you are dousing the fire your employees may be slipping away. This will jeopardize your relationships with your customers that your organization cannot afford to lose!
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses improve customer loyalty and eliminate employee disengagement. Learn how at www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
