Many leaders talk about the importance of investing in people, but it can be difficult for them to explain why this is such a crucial part of the leadership skill set. However, it is usually a very deliberate choice.
You simply can’t afford to be under-investing in your people. Don’t just take my word for it – here are some key statistics that will show why investing in talent is so vital for the success of any organization:
The tangible benefits of happiness within a workforce are surprisingly well documented. A recent study from engageforsuccess.org reported that companies with high levels of engagement (what we like to refer to as ‘happy people’) generate up to 2.5x greater revenue growth than their competitors with low levels of satisfied employees.
Happiness is powerful. If you can make your people happy and engaged with what their business does, the growth of that company will be much greater than for those who aren’t as pleased in how things are going. Creating an environment where everyone feels valued also promotes creativity by encouraging risk taking without fear of reprisal.
What better reason to make sure your team is happy than the hard numbers? Studies show that companies with happy people experience on average double the profit.
If you want an edge in business, then it’s time for a wellbeing check!
Fewer Workplace Accidents
Data shows that when businesses spend time developing their people, communicating with them openly and rewarding them fairly (just some of the simple elements) – they experience 62% fewer work-related accidents on average.
Sounds strange right? But remember this is an important piece of information for any business owner who runs the risk of injury on their team. If you own or manage a manufacturing plant, this will be especially useful as it can help save money spent due to lost production time and injuries which result in expensive lawsuits against employers.
Engaging employees has a positive effect on your churn. This means that the more engaged your team, the less likely they are to leave and work elsewhere or for your competition. 40% lower turnover rates mean you can save money on hiring replacements while also benefitting from higher productivity from employees who aren’t getting bored or frustrated.
Speaking of productivity, Studies show people who work in a joyful environment produce 18% more output than those without any joy at all! This means focusing on making workers feel appreciated and valued can lead them towards self-satisfaction which translates into better performance as well as significant savings from the bottom line. Potentially of course that means you could expand your workforce output or conversely reduce overheads with fewer people.
And don’t forget your customers – if you’re not smiling, then who will be? Contented, productive employees means that the customer needs are being met more efficiently with the right people on their job, which all results in increased repeat business and improved advocacy for your brand.
The bottom line
I think I’ve shown just how important taking time to care for the health and well-being of those who work with you leads to happy employees and lead them down paths towards success not only professionally but also personally.
You can’t afford to ignore this. So what practical steps can you take to improve your employees’ levels of happiness?
Get the brilliant basics in place
We talk about this a lot at iXerv. Concentrate on getting the basics off to a tee, and the rest will follow more easily.
Firstly, many employers overlook the importance of ensuring their employees are properly accounted for, clear in their role and compensated accordingly. Updating contracts, HR policies and paying staff promptly in compliance with local laws can go a long way towards ensuring all parties know what is expected from each other while working together as part of your business team. Overlooking this basic is fatal – nothing kills happiness like uncertainty around someone’s employment.
Further, busy business executives often forget how important it is to keep in close contact with their people, especially when they’re not all together (hey there all my zoom buddies!). Check-in regularly; make sure your staff understand their objectives and everyone is working the way you think customers expect them to.
Development is about taking action. Get involved in the work they do and find ways for them to achieve their goals, because without development it’s difficult for anyone to grow as an individual or develop new skills.
And finally, of course, there is technology out there that can make all this easier. Automating processes, documenting and scheduling progression and succession planning, and providing 360 feedback loops to ensure everyone is on the same page, are just some of the benefits of modern HCM tools.
If you do want to talk about how Punch has been developed to help mid-sized businesses create a productive and effective team then get in touch.
But most of all just remember – be happy!