Does employee engagement really have an influence on a company's performance? According to the latest studies published on the subject, the answer is positive and unquestionable.
The commitment is now a real Lever of competitiveness for businesses, and it has naturally become one of the main concerns of HR departments.
Here we offer you discover the impact of commitment on performance with key figures. We will then give you some tips to increase the engagement rate within your teams.
How does commitment impact a company's performance?
Employee engagement plays a role both on employee productivity, but also on the turnover rate. These two factors logically influence the overall performance of a company.
Christine Dolffus (VP Marketing and Communication of CGI) and Jean-François Sebastian (DG SAS France) took the time to discuss the impact of a sense of belonging in their businesses. They explain why and how this affects performance. 👇
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Commitment affects employee productivity
An employee who is committed to his company naturally puts all the means at his disposal to achieve his goals quickly. He is more likely to take initiatives: this encourages innovation. These reasons explain the fact that commitment contributes to operational efficiency in companies.
A survey conducted by Gallup (1) in 2022 assessed the real impact of employee engagement on productivity:
- Highly committed employees have a productivity increased by 17% on average.
- Les problems related to quality decrease by 40%.
- La profitability of businesses that succeed in highly engaging their staff is 21% higher to the average.
A committed employee is therefore more efficient and more productive. This is a significant asset for a company.
Commitment decreases turnover in business
The second very positive aspect of engagement is related to increased retention. Indeed, committed employees are less tempted to apply to competing companies. If they feel good about their work environment, that their missions are meaningful, and that they are listened to and recognized at their fair value, then their desire to leave their job is weak, if not non-existent.
The same study conducted by Gallup showed that turnover fell by an average of 24% for employees involved in their work.
If it is so important to reduce turnover in companies, it is because the departure of an employee represents an extremely high cost. It involves in fact having to recruit a replacement, and to train him for several weeks or even several months. It can also upset the balance of teams and have a negative impact on their productivity. The current period also shows that recruiting can be difficult right now: the war for talent means redoubling your efforts to attract new people and push them to join your company.
Acting on commitment is a profitable investment
To better understand why investing in employee engagement is profitable, you need to take a closer look at the return on investment.
A study by Human Capitale Institute (2) dating from 2010 showed that the return on salary for an actively engaged employee is 120%. This means that for one euro invested in its salary, the company earns €1.20. On the other hand, A highly disengaged employee has a return on pay of only 60%. This means that for every euro of his salary, he makes his employer lose €0.40.
To give you a more precise idea, a highly committed employee, paid €2,000 per month, earns his company nearly €5,000 per year. For the same salary, a disengaged employee causes almost €10,000 to be lost. Some studies even estimate that this figure can rise to €15,000/year. Gallup calculated that the total cost of disengagement in France is around 97 billion euros per year.
These figures show the importance of investing in the commitment of its employees: the return on investment is positive.
How to act on employee engagement?
To help you better understand the challenges of engagement and the means at your disposal to act.
Employee engagement: what exactly are we talking about?
THEcommitment of an employee is a concept that is not easy to define precisely. It is generally considered to be the degree of involvement of an employee in his company. It can also refer to how committed they are to their organization, or how much effort they put into achieving their goals.
The company has a role to play in the commitment of its employees. Indeed, to be fulfilled, an employee needs good working conditions, recognition, social interactions or even the ability to evolve in the tasks assigned to him. These must be meaningful for him, in order for him to be fully motivated.
The different ways to increase employee engagement
The first parameter to be evaluated is that of the working conditions of your employees. Indeed, if the equipment provided is outdated, the premises are unsuitable for their tasks and the management is stressful, it is likely to see a high rate of disengagement among your teams. Once you are confident that everyone can feel comfortable in their work environment, you can implement specific tools.
At Teamstarter, we offer you to boost the commitment of your employees thanks to a crowdfunding platform. Each month, each of your employees is allocated a budget (you decide on this amount). He can then invest it in the project or projects of his choice, among those proposed by his colleagues. Once a project has reached the required amount, the person who proposed it is responsible for carrying it out. The return on investment of this solution is very positive.
If you do not want or cannot implement such a solution, you can Act on taking initiative by transforming the way your teams are managed. The Bottom-up is a concrete example of management allowing everyone to fully engage in all types of missions. It can be very effective as long as it is implemented step by step.
The figures show that there is a real correlation between employee engagement and the performance of their company. However, still too few organizations give themselves the means to act effectively on this lever. The proof is that The rate of employees who are very committed to their company has been in constant decline in recent years, to reach 6% only in 2022 (Gallup 2022 study). For comparison, that number is 34% in the United States. French companies therefore have a powerful performance driver to activate. To do this, take stock of your current situation and put in place the tools necessary to increase the commitment of your teams. You should get positive results in the long run.
- Gallup Survey 2022
- Determining Employee Return on Investment, Human Capital Institute, 2010.
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