There are countless reasons why an investment in employees should be a business owner’s number one priority on the path to success. The following listed reasons derive from the results of a multitude of studies that took on the topic of employee satisfaction and employee engagement. The list is composed of only a few of many reasons, benefits and numbers that contribute to your company’s success when you invest in your employees.
- “Satisfied” or “engaged” companies boast 5x higher capital gains and 6% higher net profit margins than companies with employees who are not satisfied or engaged.
- Satisfied employees are 3x more likely to stay at work longer if there is a project that needs to be completed.
- Immense expenses for personnel recruitment are catastrophic consequences from disloyalty on the side of the employees. For example, the average cost of replacing a qualified employee is 400% of his or her yearly income.
- 79% of employees quit their jobs due to the lack of appreciation in the workplace.
- Satisfied and engaged employees provide better service, better quality and productivity. This leads to an increase in customer satisfaction, which ultimately leads to increasing sales, higher profits and capital gains.
- Satisfied employees are 2x more likely to help other colleagues, even when they did not directly ask for help.
- Furthermore, satisfied employees are 3x more likely to do something positive for the company that is not expected of them.
- It is 5x more likely that satisfied employees will recommend your company to others.
- Retention of loyal employees and investing in employee satisfaction leads to personnel that is very well versed in the company procedures and, therefore, produces qualitatively high-quality work.
- “Satisfied” and “engaged” companies exhibit a 2x higher loyalty rate than those who do not invest in their employees.
These and many other facts emphasize how important it is for a business owner to invest in employees. If you are consistently losing your employees and having problems with employee retention, then you likely know that this results in extremely high costs that not only steal money, but also time. On the other hand, an investment in your current employees is tied with much lower costs. Show your employees that you appreciate them and their work. The first step in doing so is an employee survey. Without a survey, you cannot know where the problems lie. A continuous analysis of the company culture is important in order to keep the employee engagement and satisfaction at a high level. To save on even more costs, our service takes over all steps from the employee surveys and analysis up to the end report so that you only need to implement our suggestions based upon the analysis. This will not only show your employees that their opinions are valuable and important, but also that they are appreciated.
Facts cited from “Employee Engagement for Everyone” by Kevin Kruse (2013) and “The Intuitive Laws Of Employee Loyality” by Heather R. Younger, J.D. (2017).