Why High Employee Engagement Results In Accelerated Revenue Growth

High Employee Engagement

Your customers will never love your company until your employees love it first. How? Read further to know how employee engagement results in accelerated revenue growth.

You’ve probably heard it before – happy and engaged employees pave the way for happy customers, which in return accelerates the revenue growth for the organization. To achieve this, organizations need to augment their focus towards employee engagement and retention strategies. However, employee engagement isn’t limited to celebrating your employee’s birthdays or sending them welcome emails on their first day. Your employee engagement strategy has to be a continuous program driven by employees at every level. Focusing on employee engagement will help your organization withstand and even thrive in the disrupted economic condition. The question now isn’t if to focus on employee engagement but how.

High Employee Engagement

The proven powers of engaged employees

First things first, let us look at the why and how of employee engagement. Why, specifically, your organization should prioritize enhancing your employee’s connection to the workplace and how it will help your organization to accelerate its revenue growth? 

Highly engaged organizations result in 21% higher profitability

Engaged employees are found to be more present and productive, more attuned to the needs of clients, and are more observant of systems, processes, and standards. To be more specific, engaged employees demonstrated:

A) 17% boost in productivity

B) 14% drop in absenteeism

C) 20% gain in sales 

D) 59% reduction in turnover in low-turnover organizations

E) 24% reduction in turnover in high-turnover organizations

F) 10% growth in customer ratings

All of these impacts collaboratively increased one of the most critical metrics for any organization – a whopping 21% boost in profitability. 

Disengaged employees cost US organizations up to $5.5 billion annually

On the contrary, organizations with employees that are NOT engaged lighten the wallet of the organization in remarkably quantifiable ways. A study by Gallup suggests that disengaged employees have a 37% higher rate of absenteeism, an 18% lower rate of productivity, and provide 15% less profitability. When you translate these figures into dollars, what you get is the cost of 34% of disengaged employees’ salaries or $3,400 for every $10,000 they earn. Not to forget, it is the responsibility of the leaders and the organization to take momentous steps to establish employee engagement in their organization. 

Engaged employees provide better customer service

Employee experience and degree of engagement in your organization will play a critical role in the quality of service provided to your customers. More engaged employees are happier to communicate with your customers and seek solutions for their concerns. They will be more open to assisting the customer a second time as well. On the flip side, disengaged employees are like to be moodier, more lethargic, and less keen to follow your customer’s complaints to conclusions.

The best example is Starbucks. If you’ve ever been to Starbucks you will have a firsthand experience about how well they treat their consumers. One of the reasons for their kind approach towards customers is that their employees are treated kindly by their organization too, as a result, they are highly engaged and motivated. 87% of customers’ association towards Starbucks is driven by the way they treat their employees. Interestingly, this incredible employer-employee relation is one of the reasons for the brand being so popular amongst the masses. 

Now that you’ve got a grasp of how highly engaged employees result in accelerated revenue growth, it’s important for you to develop an understanding of the ways for effectively improving employee experience and engagement. 

How to improve employee experience in my organization? 

1. Act on employee feedback

The majority of the organizations enforce employee engagement and feedback surveys to develop a better understanding of their employees and concerns. However, not all of them act on that feedback. This mistake can backfire on your employees and result in sabotaging their trust. You are more likely to improve the employee experience in your organization when your employee know that their feedback and opinions will be listened to with utmost importance. 

2. Invest in employee wellness

Active employees will incur lower health costs, which will save your organization time and money. However, make sure that your organization doesn’t narrow employee wellness to just physical wellbeing. Opt for programs that promote emotional, mental, and spiritual wellness to make your employees more attentive and productive at work. Consider implementing benefits such as health and fitness programs, sick time, paid parental leaves, health clinics, on-site gyms, and providing healthy snacks. 

3. Enhance internal communication

Internal communication amongst teams means much more than just disseminating organizational data and information. Foster a sense of community, prompt your employees to work together for the common objective, and establish a cohesive organizational culture. When your employees have an increased sense of purpose, they will become more productive and serve as the brand advocates plus ambassadors for your organization. Internal communication should be used with the aim of maintaining a connection with your employees and gaining their trust. 

4. Focus on performance management 

Do your employees feel that their performance is managed in such a manner that motivates them to work at their best level? If not, it’s about time to equip your organization with an agile performance management tool that aims to improve the employee engagement and employee experience of your organization. Having an agile performance management program will make it all easy for both your and your employees. Set their goals, monitor the progress, provide them feedback in real-time and make them aware of how their contribution leads to the final objective of the organization. 

As mentioned earlier, employee engagement is not anymore a matter of if but how. To answer your questions and concerns regarding employee feedback, employee engagement, and performance management – contact us today!  

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Gaurav Sabharwal


Gaurav is the CEO of JOP (Joy of Performing), an OKR and high-performance enabling platform. With almost two decades of experience in building businesses, he knows what it takes to enable high performance within a team and engage them in the business. He supports organizations globally by becoming their growth partner and helping them build high-performing teams by tackling issues like lack of focus, unclear goals, unaligned teams, lack of funding, no continuous improvement framework, etc. He is a Certified OKR Coach and loves to share helpful resources and address common organizational challenges to help drive team performance. Read More

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