How can employee engagement drive innovation and profitability?

by | Apr 4, 2022 | Övrigt

Employee engagement only requires a small investment but provides an enormous return. So why is it that there are so few companies that succeed in creating committed teams, and how do you go about creating it? 

When addressing employee engagement we need to consider that it also contributes to everyone’s well-being and ensures that employees have a better chance of succeeding in their roles. When people succeed in their roles, companies succeed**. That is something that is easy to understand. But how do we make this possible?

An important parameter for creating engaging teams is that managers and leaders take a large responsibility.

Firstly, it’s key that leaders understand their contribution to employee engagement and why engaged employees are important for business success. Secondly, they should strive to ensure a high level of psychological safety in their teams and encourage all to be open and try new things. But let’s not forget that it also requires that all parts of the organization are involved in creating employee engagement and that a certain responsibility falls onto each individual.

Communication is also crucial.

– We have seen many companies develop at a fast pace, but where the management fails to keep up with the changes and involve their employees. This can often lead to that the fast-growing organizations feel messy instead of forward-thinking. The organizations that communicate well throughout the journey are most likely to succeed, says Tove Oldebäck

Drives profitability and innovation

A study made by Gallup* from a few years ago shows that only 14 percent feel very engaged at work, while 11 percent feel like their current work situation is working against them. 75 percent answer that they are neither engaged or unengaged.

Engaged employees with an outlet to utilize their commitment will drive innovation within the company, which is something we know is becoming more and more important in companies today to reach success and growth**.

– I think all investments that are made to increase employee engagement in the workplace will most likely pay off, not to mention what an enormous amount of value for employees it creates, says Tove.

When we realize that commitment drives growth and innovation, it goes without saying that it is worth investing in.

Some advice to get you started

So, how can companies become better at engaging their employees? Tove Oldebäck, our CEO has a few bits of advice that she is happy to share.

– We’ve had the privilege of working with our customers at an early stage, and this is where we have the best chances of making an impact. But it’s crucial to remember that this is not a one-time effort, but something you must have a long-term perspective on, and always have on the agenda. At best, make it a goal where companies can organize their entire business around.

And it requires a lot of work to get there, says Tove. A soda machine will not do the job.

In conclusion, here are a few more of our key takeaways to help you get started:

1. Put it on your agenda and let it stay there.

2. Communication. Communicate a lot and often! As a manager, you should be a role model and make sure to enable communication within the team as well as with other teams. For example, by implementing a flexible communication tool

3. Boost creativity. As a manager or leader, you can create opportunities and make time for your employees where they can test new projects, work innovatively and be creative. Don’t be afraid of failure but make it your priority to follow up and make sure you learn something from it.

4. Break the turnover cycle. A workforce that isn’t healthy and engaged tends to lead to employees quitting their jobs, creating more work for those who are left behind. If your company spends all your time and effort on recruitment and putting out fires, it’s time to start investing in the employees you already have and their engagement.

5. Encourage your managers to take a larger responsibility and educate them in seeing their importance of making their colleagues engaged and committed.

Sources:

*https://www.inspirationcompany.se/tips-blogg/endast-14-procent-av-svenska-medarbetare-ar-engagerade-pa-jobbet

** https://brilliantfuture.se/blogg/kopplingen-mellan-medarbetarengagemang-och-lonsamhet-och-tillvaxt/)

**Analys gjord av Whartons Ekonomiprofessor Alex Edman (internt: https://knowledge.wharton.upenn.edu/article/how-investing-in-intangibles-like-employee-satisfaction-translates-into-financial-returns/) – denna är dock rätt gammal, 2008

** Om investeringar i bolag som har högt internt engagemang: Mårten Westberg  (internt: https://www.netigate.net/sv/articles/human-resources/medarbetarengagemangets-oanade-kraft/)

Share This