Best Employee Surveys

How Employee Engagement Affects Your Bottom Line

How Employee Engagement Affects Your Bottom LineSuccessful companies know that customer engagement is mission critical. The most successful companies engage not just their customers, but also their employees. When the heart and soul of your business is engaged, you're in position to innovate, deliver exceptional customer service, and minimize waste. 

Let's begin by examining how employee engagement affects your company’s success.

Employee Retention

We all know how difficult it can be to attract and retain great employees. The search and onboarding process can be costly. Some research places that figure as high as 50 to 60% of an employee’s annual salary. That figure doesn’t include the cost of orientation, training and reduced productivity during the first few months. When all costs associated with turnover are taken into account, the cost can skyrocket up to 200%.[1]

Since employees who don’t feel engaged are far more likely to leave their job than employees who are highly engaged, it becomes clear that in employee engagement makes sense.


There’s no doubt that engaged staff will result in better productivity. In a comprehensive analysis of the results of 199 research studies that covered 152 companies from 26 countries, a significant difference was found between entities with the top 25% on the engagement scale versus those in the bottom 25% of the scale. Those with lower levels of engagement experienced an 18% drop in productivity compared with those on the higher end of the scale. Additionally, they saw a 60% reduction in quality, as measured by defects in products.[2]

Customer Engagement

Improved employee engagement naturally leads to better customer engagement. No matter what department an employee works in, if they are engaged, they’re more likely to be knowledgeable about your processes, products, and services. Furthermore, they’re more likely to be interested and invested in helping to meet the needs of customers while solving their problems. When you look at it that way, it’s easy to see why employee-centric employers are also known to be customercentric. As Sir Richard Branson famously said, “Clients don’t come first. Employees come first. If you take care of your employees, they will take care of the clients.”

"One group we worked with found that by increasing employee engagement year-over-year, they were able to increase their market share in retail sales by almost 70%," shared CEO Jeff Tobaben of Evolve Performance Group, a consulting firm located in Bryan, Texas. He went on to say that among their competitors with declining employee engagement were also "losing market share."

Other Contributors to the Bottom Line

It probably goes without saying that less engaged employees are more likely to miss work than those who are fully engaged. But are you aware of just how much of a difference it can make? In their own meta-analysis using data from 263 research studies, Gallup found that business units with highly engaged employees had a 37% lower rate of absenteeism than those with less engaged employees.[2]

The same study reveals improved engagement also resulted in 48% fewer safety incidents and 28% less shrinkage.

Of course, understanding that better employee engagement is valuable isn’t enough to boost your bottom line. You need an action plan to find out if engagement really is an issue in your organization and to determine where the gaps may exist.

If improving employee engagement is becoming a priority for you as a means to improve the organization’s overall performance, reach out to us by visiting to find out more and to discover some great workplace improvement ideas.
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Tags: Employee Engagement

Best Employee Surveys
With nearly 15 years of experience and collected data, Best Employee Surveys administers recognized survey tools and delivers comprehensive reporting you can trust. Our customizable options ensure that your organization is capturing data in the most effective way for your reporting needs. Because we survey 5,000+ companies and their 700,000+ employees each year, you can feel good about using our extensive database as a comparative benchmark for your results; it is of the highest quality and is also used to support trending analyses and ongoing research performed by a number of scholars, authors, and presenters worldwide.