Relationships between employees and profits

Why should we explore satisfaction of employees? Simply because we could have loyal, work more effectively and productively employed. In this type of research, except satisfaction index, it is also shown the index of engagement of employees that is directly related to the financial success rate of the company. If we are managed to engage employees in the right way, we prevent their departure. Attracting employees who have the necessary experience and knowledge is always expensive which is why the ability of their retention of great importance for the efficiency and continuous profitability. The question that employee satisfaction survey gives the answer is exactly how to engage employees in the right way and what to do to be satisfied and the rest of the company.

Studies have shown that there is a positive correlation between higher engagement and a greater impact (business results), which is reflected in factors of employee satisfaction and customer loyalty, greater efficiency and productivity, greater yield, and higher incomes, lower fluctuation, less absenteeism (absence from work) and present (due to the presence of fear of losing their jobs), a smaller number of accidents at work, better quality of work performed.

Satisfaction vs. engagement

According to Kevin Kruse, author of the bestseller “Employee Engagement for Everyone”, it is very important to recognize the difference between a satisfied and engaged employees. While satisfied employees contribute to a good atmosphere at work it does not necessarily mean that he/she also gives the maximum. Specifically, satisfied employees can be also a worthy person who wishes to make the full contribution, but simply the company did not create the conditions that would allow him to do that.

If a company knows how to engage the potential of their employees fully it will be able to retain talent and increase work performance and productivity.

Engaged employees create a chain reaction starting with the fact that raising the quality of provided services for which customers are becoming more satisfied, sales are growing, often leads to repeated purchases, the number of recommendations to grow, and thus grow and profit.

While employee satisfaction is not directly related to the company’s financial success rate so far as involvement of employees is.

The link between engagement and profitability

When employees are satisfied and engaged, then in a smaller number, leave the company, and absent from work and all of that together have a positive impact on profit.

But the connection between engagement and profitability not only direct but also indirect because they are more engaged employees are more productive, in fact, it has a positive impact on the profitability of the company. This is indicated by the results of different studies. Consulting company “Aon Hewitt”, conducted a survey which showed that when the number of engaged employees grows by one percent this corresponds to a percentage increase of 0.6 in the volume of sales. “Gallup” in its survey conducted and showed that the lack of involvement of employees in the company’s average cost from 450 to 550 billion dollars a year. Kenexa Research reveals that the dividends of companies with more engaged workforce are five times higher compared to companies whose workforce is not as engaged as seen in the last five years.

When everything is like that the question that arises is how to engage employees to a greater extent.

How to engage the employees

There are several steps that companies can take to have a more engaged workforce:

• First, you need to go from good managers who are the true bearers and guardians of corporate values,

• Then, HR should take care that the manager and employee fit well in order to be a successful team. Poor integration will be a huge source of frustration and dissatisfaction. As research has shown that 75% of employees leaving the company because of lack of understanding of the direct superior,

• Also, the company has to insist on intensive, open and honest communication. Studies have shown that only 40% of employees are familiar with the company’s objectives and strategy,

• Employees should be involved in the decision of making process, ask them for their opinion, listen to them and respect what they have to say,

• Managers should be encouraged to work with employees on their talents and potentials,

• It should nurture a positive relationship between superiors and employees so that employees feel that they are respected and appreciated,

• As the Towers Watson’s Global Workforce Study showed employees become more engaged when in the style of leadership there is a balance between the orientation of the tasks and focus on people, when employees have adequate development opportunities and when the decision-making responsibility is down to the lower levels which give employees control over what they do,

• However, it is sometimes necessary to change the organizational structure and re-define organizational values that shape the employer’s brand.

But what is it that your company can concretely do to have happier and more engaged employees?

First of all, you can explore the satisfaction of its employees and discover how to become a better employer or that would point to possible improvements were observed specifically for your company.
Managers have to greatly change their traditional look and style of leadership, and people management. The democratization of the decision-making means that managers are forced to a much greater extent, to consult the employees already in the planning stage and the adoption of business strategies, which requires a change in approach and tactics in communicating with employees. It is the active engagement of employees to make a difference and participate in the implementation of decisions. Involvement of employees is also not (as is considered by many executives) something that in itself implies, is already part of the daily habits and practices of management and are therefore executives again those who appropriate (internal) communication provide the necessary conditions and appropriate environment for the realization of the concept employee engagement.

Engagement with the performance, becoming a new, more objective criteria which also enables the reliable prognosis of successful financial results – factors that are interested and management, and leadership. Successful managers will have to direct their work not only better manage business processes but also to maximize employee engagement which also means that human resources management becomes mandatory business subsystem that will have to be integrated into all new business models.

 

wfn

Network/Progress/Advance http://www.WorldFinanceNetwork.com

Accounting and Finance Job Board http://www.WFNjobs.com

Accounting and Finance Related Blogs http://www.WFNBlogs.com

Staffing and Recruiting http://www.WFNStaffing.com

Leave a Reply