At first glance, employee satisfaction might not seem like it would have a huge effect on your company’s productivity, engagement and retention rate. But research has shown that the impact can be immense. Here are some key statistics that prove why you should be investing in employee satisfaction.
People Work Harder When They’re Happy
According to the University of Warwick, “Happiness makes people more productive at work.” In fact, “Economists carried out a number of experiments and found that happiness made people around 12 percent more productive.”
Just think of the long-term implications if you could improve your productivity by 12 percent. It would significantly increase your company’s output and allow you to accomplish more in less time. They also reference Google, who took initiatives to raise employee satisfaction and were able to increase it by 37 percent under scientifically controlled conditions.
They’re More Engaged
Research from Gallup found that less than half (49 percent) of the U.S. workforce is engaged. This is problematic because disengaged employees cost their employers up to $550 billion each year, mainly due to poor customer service, low productivity, more frequent errors and excessive absenteeism. If left unchecked, this can quickly take a toll on your company.
Putting an emphasis on employee satisfaction is usually a cure, because happy employees tend to be more engaged. In turn, you can often reduce or even eliminate many of these issues.
They Stick Around Longer
Turnover is an issue that plagues many companies. A high turnover rate can lead to a shortage of manpower, increased training costs, time spent posting new jobs, time spent interviewing and so on. It’s bad all around.
But a separate study by Gallup found a definite correlation between engaged employees and lower turnover. According to them, “In high-turnover organizations, highly engaged business units achieve 24 percent less turnover. In low-turnover organizations, it’s 59 percent less turnover.” That’s dramatic and shows just how big of an impact satisfied employees can have.
Investing in employee satisfaction is about far more than simply having a “feel good” culture. It improves your company’s bottom line and can do a lot for your brand in the long run. So if this is an area you’ve been slacking on, you’ll want to make it a top priority.