Written By Mike Robertson
Published on February 16, 2023
There are many things that separate a leader from a manager. Managers, to their credit, are essential for a company to be successful, but those who choose to become a leader are held to a higher standard. The fork in the road between a leader and a manager comes in their ability to engage and inspire their team members and colleagues.
Many researchers have linked an engaged workforce to increased revenue and productivity, yet only 21% of respondents to Gallups latest survey called themselves actively engaged at work.
Building an engaged workforce is essential to business success. Here’s why:
Engaged Employees Produce Great Work
The golden ticket to increased performance and quality of work in an organization is ensuring that staff is engaged. In fact, Gallup estimates that companies with engaged employees outperform those without by over 200%. One output of an engaged workplace is increased collaboration, which can be the spark that takes a workplace culture to the next level.
In fact, a study from the Institute for Corporate Productivity found that companies that promoted collaborative working were 5 times as likely to be high performing.
Working as a team can inspire each member to do their part to the best of their ability. Additionally, the workload can be spread amongst the team can reduce the likelihood of burnout and increase margin in the lives of each member of the team.
If that were not enough, collaboration also improves the quality of work that a team creates. It allows each member of the team to work to their strengths, limiting redundancy and increasing the efficiency of the work that is produced.
There is data that shows the cost of a lack of collaboration in a workplace. For example, organizations with low employee engagement scores experienced 18% lower productivity, 16% lower profitability, 37% lower job growth.
The data paints a clear picture surrounding the importance of engagement. When employees can collaborate and utilize their strengths, increased productivity and quality of work are sure to follow.
Engaged Employees Turnover Less Often
Employees who are engaged at work are far more likely to remain with the organization, reducing costs associated with turnover. Studies show that a company loses six to nine months salary, on average, when replacing a salaried employee, so the savings from retaining talent can be significant.
Not only is there a cost savings to realize, but when team members turnover, it’s likely to put more stress and workload on the team members that remain until a new team member is hired and onboarded.
Engaged Employees are Happier
Earning engagement among employees helps them inside and outside of the office by increasing their happiness. A happier employee is often a healthier employee, which can collectively save businesses hundreds of billions of dollars annually in medical costs in the United States.
Happier employees are also more likely to be advocates and ambassadors for their business, helping recruit top talent and curating a positive perception of the brand in the eyes of their network. With so much to gain from an engaged workforce, one would think it would be a top priority for all leaders. If you want to set yourself apart from the masses and become the best leader you can be, the time to invest in engaging your employees is now.
Mike brings a decade of experience in the travel and tourism industry to his work with Fired-Up! Culture. He is a 30 Under 30 award winner and has presented on his favorite topics, leadership and the needs of the next generation of employees, at events across the country.