At Greenshades, we value employees. We talk a lot about how to engage, empower and recognize your workers, especially those who are working remotely. We’ve suggested a variety of ways to show your team some much-needed love. Simply put, we support an employee-first philosophy, and most employers would agree with that, at least on paper. But when it comes to putting employee-first policies into practice, it’s natural to ask why. Sure, your workers are important to your business, but why put them first? Why does the employee experience matter so much? Today, we want to share three reasons why you should embrace employee-first processes at your company.
Reduce turnover and the need to hire and onboard new workers. Some turnover is inevitable. But in most cases, the more employees you can retain over the long term, the better. It costs valuable time, money, and resources to seek, hire, and onboard new workers to replace those you’ve lost. The Society for Human Resource Management (SHRM) reported in 2016 that it costs $4,129 and 42 days on average to find and hire someone new, and that doesn’t count the cost of onboarding, as well as the lost productivity while the role is empty and during a new hire’s training period. American companies spend nearly $3 million every DAY looking for workers to replace team members who have left.
Just how big an issue is turnover in today’s workforce? Right now, more than 33% of US workers are either casually or actively looking for another job. According to Work Institute, 25% of American workers (more than 40 million people) left their jobs for other at different companies in 2018, but more than 75% of those leavers could have been retained if companies made the effort to keep them. Clearly, taking the time to give your employees what they need to stick around is just good business practice, saving both time and money.
Increase productivity; make the most of your team. It may seem like a no-brainer, but engaged and empowered employees just perform better in the workplace. When an employee is engaged, they are interested in helping the company succeed. They are part of the team and want to contribute. They aren’t mentally “checked out” and just turning up for a paycheck. A Gallup study noted that companies with high employee engagement had 41% lower absenteeism, and those same companies were 22% more profitable. Despite this, Gallup also reported that only about 33% of American workers feel engaged in their workplaces, which means two thirds of employees in the US are not at their most productive or working with an eye toward making the company the best it can be.
A positive employee experience spreads outward. When your employees are engaged and empowered, everyone who interacts with your business has a better experience, and that reflects on your company’s performance. The book Corporate Culture and Performance notes that companies with cultures that highly valued and empowered employees, owners, and customers (a “performance-enhancing culture”) saw 682% revenue growth and 282% employee growth over 12 months, whereas companies without this sort of affirming culture showed just 166% revenue growth and 36% employee growth over the same period. Not only that, a happy, engaged workforce means better decision-making, greater creativity, and higher morale, all of which impact how your employees interact with everyone from customers and vendors to their own colleagues. As the saying goes, a rising tide lifts all ships; if your company culture is one that celebrates and encourages employees, those employees in turn will lift up your business.
So now that you know how important it is, how exactly can you put your employees first? Give them the tools, resources and communication they need to feel engaged. Offer perks like learning opportunities and incentives. Give them control over their personal data in your system, so they can update their information, manage their own benefits using an employee benefits management system, and request time off easily (this has the added bonus of taking some of the load off your HR staff). Give them flexibility and accessibility with creative time entry methods, remote access via app, and the means to control when and how they are paid for their work. Provide a company culture that is open, welcoming, and encouraging whenever possible. These things can help turn a disjointed, disgruntled team into a well-oiled machine of productivity, retention, and satisfaction.
If you’re not sure where to start with engaging your workforce, don’t worry. Greenshades has your back. Click here to request a demo and see how our unified payroll platform helps you put your employees first, now and into the future!