Employee Engagement: How Can Your HR/Payroll Help Retain Your Employees and Save You Money? (Pt1)
As the global marketplace continues to expand and evolve into a more competitive environment, businesses have to stretch and adapt or risk falling out of the race. The key to staying on top lies in an organization’s ability to retain a quality workforce.
Many organizations have come to realize that they need to leverage the limited financial strength and resources they have. Organizational focus needs to be realigned and often operation (non-core) tasks need to be analyzed to ensure they are not holding back the business.
HR and Payroll operations are two of the functions that can be outsourced to external specialists. Beyond the financial savings, by freeing up HR or Payroll managements' time they are able to focus and contribute to the business more strategically.
By planning organizational processes in partnership with a provider, such as NGA Human Resources, organizations can leverage the scale of solution in regards to resourcing, skill specialization as well as infrastructure, compliance and overall savings in cost of service.
Capitalizing on Employee Engagement
An organization that is able to connect the dots and link employee satisfaction to payroll and HR activity, will find that they save themselves not just a lot of employee/employer tension, but also a lot of savings. Tensions over issues such as benefits, classifications, workplace policies and working conditions, as well as correct and timely payments can cause employees to abandon an organization droves.
When you factor in the sourcing and retraining of staff, the benefits of positive employee engagement is easily demonstrated.
Employees have the power to either drag down a company’s operation (or quality of product) or escalate production (and quality), therefore increasing the company’s profits. Not to mention long term reputation. The net happiness of the workforce is therefore a core factor that contributes to operational output and the organization’s overall performance and competitiveness.
A company that experiences high turnover rates will find it difficult to achieve peak performance, and will always be grappling with loss of revenue as their workforce cycles though sourcing, onboarding, productivity and offboarding.
The Benefits of Engaging Your Employees
As an organization's largest and most important investment, employees must be considered as (and made to feel like), a valued part of the organization, rather than like a temporary fixture that can be discarded at will. They must feel valued, included and appreciated.
“If you don’t start with the workforce, how can you reach the public? It’s much better to have 18,000 ambassadors than 18,000 assassins.” Cambridgeshire County Council, UK (Source)
One of an organization’s biggest and most important responsibilities is making their employees feel like part of a team, a company, or partners who are all “in this together”. This can achieved by using your HR and Payroll to further engage your employees. Here are a few benefits you will enjoy from engaging your workforce.
- An engaged workforce displays higher levels of satisfaction which radiates amongst fellow workers
- Employee engagement serves as a positive tool for retention and recruitment
- It builds loyalty and increases productivity
- Improves performance
- Increases profitability
- Improves customer relationships
- Stimulates greater creativity
- Improves teamwork
- Improves quality and quantity of output
- Decreases turnover
- Decreases absenteeism
Getty & Darryl Stewart offers that some of these benefits are consistently reflected over many years in studies done by entities such as: The Corporate Leadership Council, 2004; Gallup Management Journal, 2006; Canadian HR Reporter, 2006; ISR (International Survey Research),2006; Towers Perrin, 2007.
Employee retention has a direct link to people management and productivity and the truest source on employee data is your payroll system. It is in the employee’s best interest to keep their payroll data updated.
In one of its studies, The Gallop organization found that employee engagement had a positive effect on performance, influencing results such as reduced employee turnover, increased profitability and productivity, and increased customer satisfaction.
An organization's HR and Payroll department(s) are directly in charge of people management activities. Using those already charged with people management responsibilities to help the organization retain quality employees is logical, as they will be better able to effectively plan and implement retention programs.
However in order to do this effectively strategic Payroll and HR managers need to free themselves from the day to day administrative burdens by outsourcing either key components or comprehensively moving those tasks to a provider such as NGA Human Resources.