Employee Engagement: Key component of a company’s financial strategy

Employee engagement is key to realizing a competitive advantage. It can be defined as the extent the
employee feel involved in performing their daily chores and feel valued for doing it. An engaging work
environment accentuates an employee’s motivation and drives them to go that extra mile. The
economic repercussions of low engagement could be staggering can cost companies in millions. With so
much at stake, employee engagement should be the key component of a company’s financial strategy.
In a competitive landscape as today, where employees are the biggest asset to an organization, and
holding on to a skilled workforce has its weight worth in gold, it’s all about creating value in the roles
they do. Employees with higher engagement scores are satisfied and as a result less likely to leave their companies
and are regular high scorers in performance reviews.

Creating an engaging work environment doesn’t happen overnight. It requires careful planning, active
involvement from the senior leaders and a communication channel which is transparent and
informative. This at the core, and a comprehensive recruitment strategy designed to find the right fit for
the role enhances the formation of a conducive working culture.

Every company strives for a high turnover at the end of a financial year and a higher attrition rate is one
the biggest roadblock in achieving it. Higher attrition rates eat into the return on investment as rehiring
and training is a very costly process, not to forget the lax in productivity during the rehiring phase.
When organizations have engaged employees, it reflects on the overall performance and brand image of
an organization, invariably having a positive impact on its finances.