5 Reasons Why Your Business Should Foster an Employee-First Environment
As an entrepreneur, a big part of your responsibilities involves managing your employees and the output they provide for clients transacting with your company. While output is essential to your company’s growth and revenue, taking care of your employee’s well-being also contributes to how your company performs.
Employee management is just as important for business as products and services. Happy and satisfied employees tend to be more productive, efficient, and output-driven in comparison to those who are not. To give you insight into an employee-centered environment, this article lists the benefits of securing a healthy work environment for your company.
#1: Employee Satisfaction Equals Customer Satisfaction
Many studies claim that there is a direct correlation between employee and customer satisfaction. Satisfied employees are more likely to deliver a better customer experience with a more pleasant and friendly demeanor carried over from their everyday work environment.
According to the 2017 State of American Workplace Report, companies that have happy employees benefit from a 147% increase in earnings per share in comparison to their competitors. Additionally, the report found that most companies overlook the negative effects of employee disengagement on customer satisfaction and only address them once their reputation has already been damaged beyond repair.
Ensuring the creation of a work environment that takes care of your employee’s well-being will increase your chances of gaining higher profit. Moreover, happy employees will help you gain more customers for your company.
#2: Increases Business Sales and Profitability
As mentioned in the previous section, happy employees equal happy customers, which results in higher profits for your company. Healthy work environments contribute to a 12% increase in employee productivity rate, resulting in more output delivered to customers.
A healthy work environment also encourages employees to work beyond what the company expects from them. They tend to take the extra mile in ensuring that your clients receive the service they need when transacting with your company.
#3: Higher Employee Retention
Satisfied employees also lead to a higher rate of employee retention. Increasing your employee’s satisfaction rate will help you evade costly turnovers for your company. By achieving a high employee retention rate, your company can benefit from the following:
- Reduced Turnover Hassle. Turnovers are one of the most expensive management costs any company encounters. Keeping your employees satisfied keeps you away from having to dedicate such efforts on a regular basis.
- Improved Morale. What happens within the company affects those who work inside it. Employees who discover their colleagues have left the company can greatly affect their point of view towards your company.
- Reduced Acquisition and Training Time. Retaining employees will reduce your efforts in acquiring new talents and providing training upon onboarding. This saves your company a significant amount of time and money on recruitment.
- Increased Overall Productivity. Lower attrition rates correlate to satisfied employees. When employees are satisfied with their work, they are more likely to be productive, efficient, and active when accomplishing daily tasks.
- Reduced Costs. Besides turnovers, hiring new employees can also be costly for your company since you may have to outsource your recruitment services to find ideal candidates to replace resigned employees.
A higher employee retention rate can benefit your company significantly. Such will allow you to dedicate more time and effort to other sectors in your business.
#4: Reduces the Risks of Poaching
Every company has a set of employees who are also sought after by other competitors. By setting an employee-first environment in the office, the risk of your top employees being vulnerable to poaching by other competitors is significantly reduced.
Happy employees grow loyal to your company for numerous reasons. From a competitive salary package to a healthy work-life balance, employees tend to stay with their current company if their personal and professional needs are met. Fostering a healthy work environment reduces the chance of successful poaching from competitors who wish to acquire your top and high-performing employees.
On the other hand, a healthy work environment will give you an advantage in acquiring top-tier candidates during recruitment, especially for positions that require expertise such as niche and C-level positions.
#5: Greater Room for Business to Thrive
Your employees contribute greatly to your company image towards clients, investors, contractors, and competitors. They are responsible for upholding company values and invest time in projecting your products and services to increase company revenue.
Cultivating a culture where employees feel secure, comfortable, and valued allows you to create better connections within your industry, giving your company an advantage against your competitors. Such connections can also give room for growth as it opens your company to a bigger market, giving you opportunities to make transactions with local and international enterprises.
Create An Employee-Centered Work Environment for Your Business
Fostering an employee-centered work environment enables your company to create a satisfying experience for both your employees and clients. Your company environment greatly affects your employee’s attitude towards work, ultimately affecting your company’s output.
Aligning your management strategies to cater to your employees’ health will benefit your company in many ways. If you find these procedures exhaustive, it is best to reach out to employee management service providers to guide you in creating an employee-first environment for your business.
Cultivate A Healthy Work Environment for Your Business
With a full suite of up-to-date employee management strategies, KCG is dedicated to helping you provide a healthy and enjoyable work environment for your employees.