As a CEO, you may be aware that high employee turnover can be a costly issue for your company. Employee engagement plays a key role in staff retention, as engaged employees are more likely to remain with the company for a longer period of time.
Research has shown that companies with high employee engagement levels have lower turnover rates compared to those with low engagement levels. According to a study conducted by Gallup, highly engaged business units had 59% lower turnover rates compared to their disengaged counterparts.
Another study conducted by the Corporate Leadership Council found that highly engaged employees were 87% less likely to leave their companies compared to their disengaged peers. Similarly, a study by the Society for Human Resource Management found that companies with high employee engagement levels had turnover rates 40% lower than those with low engagement levels.
So, how does employee engagement lead to increased staff retention? Firstly, engaged employees are more committed to their work and to the company's mission and values. They feel that their work is meaningful and that their contributions are valued, which leads to a greater sense of job satisfaction and loyalty.
Secondly, engaged employees have a positive relationship with their managers and coworkers, which contributes to a positive work environment. This sense of community and belonging can increase the likelihood that an employee will stay with the company for a longer period of time.
Thirdly, engaged employees are more likely to receive recognition and career development opportunities, which can further increase their commitment to the company. When employees feel that the company is invested in their career growth and development, they are more likely to remain with the company for a longer period of time.
In conclusion, fostering employee engagement is crucial to increasing staff retention rates. The research is clear that highly engaged employees are less likely to leave their companies compared to their disengaged peers. By prioritizing employee engagement and creating a positive work environment that values and supports employees, you can reduce turnover costs, retain skilled and experienced employees, and ultimately, improve your company's bottom line.