A 2015 Gallup Report reveals that managers who are not engaged or actively disengaged cost the U.S. economy $319B to $398B annually. With billions left on the table, it is imperative that more companies take a closer look at not only what is causing management to be disengaged, but what is causing the disconnect between their managers and employees. This staggering statistic speaks volumes to how vital management engagement is within a company regarding overall profit margins. The billion-dollar question is, how can companies properly address this issue and see the value of investing in management and employees? Here are 3 reasons why more companies must invest in company culture or engagement programs.
INCREASE IN REVENUE
There is a tremendously financial benefit of developing a strategic plan for engagement and retention. Companies with employee engagement programs achieve 26% greater year-over-year increase in annual company revenue, compared to those who do not have formal programs (Aberdeen Essentials, 2015).
It cost companies money to fill an open position. It was discovered that it take an average of 52 days to fill an open position and cost an average of $4000.00 (Talent Acquisition Factbook, 2015). This also means that while the position isn’t filled, the job is being performed by another employee or not being performed at all. Having an open position can affects productivity and retention. By investing in an engagement program, a company could save thousands.
INCREASE EMPLOYEE RETENTION
Only 32% of U.S. workers are engaged in their jobs according to a January 2016 Gallup Daily Report. That means 68% of workers are disengaged in their jobs. In addition, 1 in 2 employees have left their job to get away from their manager (Gallup, 2015). Having a high turnover rate is not good for any business. Engagement programs create stronger managers and employees, increases trust and retention rates.