Every company relies on human capital to operate. Even in mechanized industries like mining and manufacturing, employees still play an important role. It is no wonder that all companies have some form of human resource management function to handle this precious resource. When employees are happy and engaged, the company thrives, but when they become disgruntled, things can take a turn for the worse.
Alpine Building Maintenance understands this delicate balance all too well. As one of the largest building maintenance companies in Canada with over 1500 employees, mastering employee satisfaction is as important, if not more important, than a profitable bottom-line. Alpine Building Maintenance knows that when its employees are satisfied, the rest of the business takes care of itself. In this article, the building maintenance company shares five positive impacts of employee satisfaction that other companies should aspire to achieve.
Increased Employee Productivity
Employee productivity is at the core of every profitable company. When employees are creative and produce results, the company can meet its obligations to clients and customers. However, it takes a satisfied employee to produce the kind of productivity that results in profits. One study found that happy employees are approximately 20% more productive than unhappy individuals. Investing in employee satisfaction, says Alpine Building Maintenance, helps to fuel motivation.
Innovative companies such as Google, Apple (News - Alert), and Facebook understand this relationship. When they provide free food, gyms, and other perks to employees, they know they will recoup this investment through increased productivity. And it shows – these are some of the most profitable companies in the world. Even if you cannot afford all the perks that such companies offer, the important takeaway is that investing in employee satisfaction can help improve employee productivity, and this can help your business grow.
Higher Employee Retention Rates
Employee churn or turnover refers to a situation where a company is unable to retain its employees. In such companies, employees stay for a few months to years and then leave. On average, such companies spend up to 40% of one year’s salary to replace an entry-level employee, up to 150% to replace a middle-level employee and up to 400% to replace a senior-level employee. In most cases, this churn rate involves unhappy or unsatisfied employees moving on to greener pastures.
As a company hoping to retain your customers, investing in employee satisfaction can help stem this exodus. Understanding why employees leave is a good place to start. Offering employees an exit interview can help you plug any leaks in your ship. However, it takes a keen employer to do what it takes to increase employee satisfaction and boost retention rates. It may mean reimagining your corporate culture or even reshuffling your management team.
Better Customer Satisfaction
At Alpine Building Maintenance, for example, customer satisfaction is a direct indicator of how happy employees are. When customers submit complaints, employee satisfaction is one of the factors the company investigates first. Understanding the importance of employee satisfaction regarding customer experience can help you avoid costly mistakes that lead to customers leaving your business for the competition.
Lower Staffing Costs
As mentioned earlier, it costs more to hire new employees than it does to keep existing ones. If that is the case, why do so many companies struggle with low retention rates and high staffing costs? One factor is a poor understanding of what makes for a satisfied employee. Daniel Pink, in his seminal book titled “Drive,” identified three things that help boost employee satisfaction and retention rates. These are autonomy, mastery, and purpose.
When employees feel like they can work without being micromanaged, they are more satisfied. Similarly, if employees feel like they are getting better at their work while also working towards a higher cause, they are more inclined to stay. As a company, you can integrate these elements into your organizational culture as a way of increasing staff retention rates and lowering staffing costs.
Improved Corporate Culture
It is often said that employees do not leave companies; they leave bad bosses. One of the most significant factors identified in employee dissatisfaction is a toxic work environment. Such toxicity could be to do with bad bosses, lack of recognition, no salary increments or promotions, bad office politics, and others. When such a toxic culture becomes entrenched, your company becomes filled with unmotivated and distracted employees. So, what can you do to boost employee satisfaction and, in the process, reimagine and reengineer your corporate culture? Here is what Alpine Building Maintenance does.
Value employee feedback, from the very bottom of the organization to the top, says the company. When a company values feedback, it shows its employees it cares. Secondly, your company must be brave enough to change. If certain things that are not working are harming employee satisfaction, take steps, no matter how painful, to remedy these issues. It may take years, but as your employee satisfaction rises, you will see your corporate culture change for the better.
Last Words
Indeed, you cannot make all your employees happy all the time. It is also true that bending to every whim your employees have may not be a good strategy either. The perfect balance is to tie employee satisfaction to performance. Commit to boosting employee satisfaction if they commit to raising their performance. When this delicate balance is struck, there is no limit to what your company can achieve.
