Managers often focus on priorities such as increasing revenue, making better products, keeping shareholders happy, etc. However, they often forget about their employees. However, making sure that your employees are happy and satisfied with their jobs should be your number one priority. Read below to find out the reasons why:
1.Employee satisfaction has a direct effect on business performance
Are you not convinced that employee satisfaction leads to better business performance? Well, here are some statistics to change your mind:
- Researches from the University of Warwick found out that happiness makes employees 12% more productive, while unhappiness makes them 10% less productive.
- HR Daily Advisor has discovered that happy employees are more collaborative and creative when working together towards a common goal
- In addition, they found out that happy employees have lower turnover rates. This can be quite crucial to the bottom line, as replacing an entry-level employee costs between 30-50% of an annual salary, mid-level employee up to 150% and senior or specialized worker up to 400%.
Even though in the past employee satisfaction has been mainly correlated to the turnover rates, in reality, it is much more than that. It is about relationships employees have with their colleagues, bosses and customers. Venus Rekow, the Chief Behavioral Strategist at Neural Shifts, said:
“We know that the relationship managers establish with their reports directly impacts employee’s ability to speak up and drive performance”.
In fact, a study conducted by Gallup with almost 8000 business units within 36 organizations found out that there is a strong correlation between employee satisfaction and how well a business is performing.
2. Happy employees lead to happy customers
Your employees are often the face of your company and the first point of contact with your customers. Therefore, if your employees are unhappy or unsatisfied with their job, this often shows, even if unintentionally. Happy employees tend to be more willing to help and more enthusiastic about assisting customers. This, in turn, leaves your customers with a positive impression of your company. And this will make them come back again and again!
3. How to ensure your employees are happy?
It can be sometimes difficult to know how to make your employees happy, especially because every person is so different and has different needs and preferences. In addition, many employees might not be willing to share any complaints or critique face to face with their managers or during a performance review. Furthermore, some companies have a “feedback session” with their employees only once a year!
For feedback to work, it needs to be continuous and dynamic. One good idea is to use an employee satisfaction tool. Thus, your employees can share anonymously their thoughts and experiences about their daily work life. In addition, you can send them surveys related to their job satisfaction, the same way you would send to your customers about their product satisfaction.
Treating your employees as your most valuable resource for continuous growth can only bring you more business and revenues, so what are you waiting for!