--- title: Why your business should focus on employee engagement description: Employee engagement is a vital part of a successful organisation. In this blog, we outline 5 reasons why your business should focus on employee engagement. image: https://www.penguins.co.uk/hubfs/employee_engagement_incentive_header.jpg --- Want to talk about your event? give us a call on: [+44 (0)1753 833 811](tel:+441753833811) *x* [![Penguins Events Ltd](https://www.penguins.co.uk/hs-fs/hubfs/Penguins-sep16/images/logo.png?width=193&height=40&name=logo.png "Penguins Events Ltd")](https://www.penguins.co.uk/) ** ** ### Contact us ** ### Subscribe # Why your business should focus on employee engagement 15 Apr 2020 | by [Holly Mills](https://www.penguins.co.uk/incentive-travel-blog/author/holly-mills) Employee engagement is a vital part of a successful organisation. Businesses should focus on the happiness of their customers, and where possible, seek to implement it into their corporate strategies. On average it costs an organisation [£12,000 to replace an employee, the cost rises the higher position the employee has, for example to replace a CEO the costs could surpass £213,000.](https://www.accountsandlegal.co.uk/small-business-advice/average-employee-cost-smes-12-000-to-replace) Employees are the most valuable resource in an organisation, however many organisations aren’t prioritising employee engagement, instead paying lip service even though research has shown that [companies with engaged employees outperform those without by up to 202%.](https://www.dalecarnegie.com/employee-engagement/engaged-employees-infographic/) Here are 5 additional reasons why businesses should be focusing on employee engagement: ### [1. Increased staff retention](https://www.penguins.co.uk/incentive-travel-blog/why-your-business-should-focus-on-employee-engagement#retention) ### [2. Increased productivity](https://www.penguins.co.uk/incentive-travel-blog/why-your-business-should-focus-on-employee-engagement#productivity) ### [3. Increase in profit](https://www.penguins.co.uk/incentive-travel-blog/why-your-business-should-focus-on-employee-engagement#profit) ### [4. Better work-life balance](https://www.penguins.co.uk/incentive-travel-blog/why-your-business-should-focus-on-employee-engagement#work-life-balance) ### [5. Increased customer satisfaction](https://www.penguins.co.uk/incentive-travel-blog/why-your-business-should-focus-on-employee-engagement#increased-customer-satisfaction) ### 1. Increased staff retention Losing an employee can result in loss of talent, recruitment expenses, the cost of training a new employee and the cost of lost opportunities, to name but a few. [Retaining employees reduces HR costs, promotes company growth from within and improves customer service](https://www.penguins.co.uk/incentive-travel-blog/7-top-tips-for-retaining-employees). Engaging employees will make them [87% less likely to leave](http://www.business2community.com/human-resources/10-shocking-statistics-disengaged-employees-01813491#r8aiY1T0sbqmshA7.97), as they don’t have a reason to look elsewhere for work. ### 2. Increased productivity Gallup’s [2016 meta-analysis finds that firms with high levels of employee engagement report 20% higher productivity](https://news.gallup.com/reports/191489/q12-meta-analysis-report-2016.aspx). This is due to engaged employees turning up to work with purpose, passion and a love for their jobs. [Engaged employees are more likely to work harder as they believe in the values of the company](https://www.penguins.co.uk/blog/how-employee-engagement-drives-productivity), they feel respected and valued and want to help the company thrive. ### 3. Increase in profit MIT’s Sloan Review finds that firms with high levels [of employee engagement report higher profit growth (10–15%) than firms with low levels of employee engagement (0–1%).](http://ilp.mit.edu/media/news_articles/smr/2015/56404.pdf) This is largely an indirect effect created through the other benefits of employee engagement. With increasing employee retention, productivity and customer satisfaction, profitability is increased. Engaged staff generally work harder, inspire customer loyalty and stay with an organisation – ultimately this increases revenue and reduces costs. ### 4. Better work-life balance [61% of employees are burned out on the job](https://www.forbes.com/sites/nazbeheshti/2019/01/16/10-timely-statistics-about-the-connection-between-employee-engagement-and-wellness/#50fc71322a03), this means that they are experiencing high levels of stress resulting in poor physical and mental health. Having a good work-life balance increases employee morale, results in reduced absenteeism and increased productivity. Unfortunately, a lack of [work-life balance is the reason that 27% of people leave their current jobs](https://sproutsocial.com/insights/importance-of-employee-engagement/); the key to implementing a better work-life balance isn’t just about gimmicks such as free lunch vouchers and sweet treats, it’s about enabling flexible working and investing in wellness strategies – ask your staff what they need and try and accommodate. ### 5. Increased customer satisfaction *“To win in the marketplace, you must first win in the workplace” – Doug Conant, former CEO of Campbell Soup* The service an employee delivers to a customer is linked to how engaged they are with their organisation. Happy employees’ equal happy customers – this is demonstrated in a survey by Gallup that found [that companies in the top quartile of employee engagement experience 10% higher customer ratings.](https://www.gallup.com/workplace/236927/employee-engagement-drives-growth.aspx) Engaged employees spread their enthusiasm and passion for a company, to customers, therefore providing the best possible service. Satisfied customers also have the same affect on employees; positive customer experiences can reinforce how employees feel about the value and purpose of their work. It’s a win, win situation! ![Holly Mills](https://www.penguins.co.uk/hubfs/Design_By_Blend/About%20Us/Team/Holly.png) #### By Holly Mills Beginning her career in incentive travel in 2007 Holly is an expert in delivering once in a lifetime experiences to reward and recognise groups.[More articles](https://www.penguins.co.uk/blog/author/holly-mills) by Holly Mills [< back to blog](https://www.penguins.co.uk/blog) - [Reward and Recognition, Incentives](https://www.penguins.co.uk/incentive-travel-blog/topic/reward-and-recognition-incentives) #### RECOMMENDED POSTS [How To Get Your CEO To Take Reward And Recognition Seriously](https://www.penguins.co.uk/incentive-travel-blog/how-to-get-your-ceo-to-take-reward-and-recognition-seriously) [How To Make Your Incentive Sustainable](https://www.penguins.co.uk/incentive-travel-blog/how-to-make-your-incentive-sustainable) [Travel incentives: looking to the past to predict the future](https://www.penguins.co.uk/incentive-travel-blog/travel-incentives-looking-to-the-past-to-predict-the-future) [Conscious incentive travel in a post-pandemic landscape](https://www.penguins.co.uk/incentive-travel-blog/conscious-incentive-travel-in-a-post-pandemic-landscape) [Are people more incentivised for trips when they can bring a partner?](https://www.penguins.co.uk/incentive-travel-blog/are-people-more-incentivised-for-trips-when-they-can-bring-a-partner) #### SHARE THIS BLOG POST: [![Share on LinkedIn](https://static.hubspot.com/final/img/common/icons/social/linkedin-24x24.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.penguins.co.uk%2Fincentive-travel-blog%2Fwhy-your-business-should-focus-on-employee-engagement%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on Twitter](https://static.hubspot.com/final/img/common/icons/social/twitter-24x24.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fwww.penguins.co.uk%2Fincentive-travel-blog%2Fwhy-your-business-should-focus-on-employee-engagement%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fwww.penguins.co.uk%2Fincentive-travel-blog%2Fwhy-your-business-should-focus-on-employee-engagement%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=Why%20your%20business%20should%20focus%20on%20employee%20engagement) ### Like what you've read? 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