Employers can better retain employees by showing them appreciation, states Glassdoor. Maintaining confidentiality in the workplace is important for building and maintaining trust, and for ensuring an open and honest communication between customers, clients and employees. They provide employers with information to use when making employment decisions, such as promotions, pay raises, and layoffs. Ask what employees are least happy about. If your organization is changing direction, developing new products, changing mission, vision, or goals, HR must lead the way with employee programs and processes. Reasons Why Training Is Important for Every Employee's Career Growth Employees are the real assets of any organization. There are a few distinct ways to get on track with a better engagement level. An employee who feels she's being treated fairly and that she's valued will reflect that, even when she’s off the clock. Particularly, it is important in a world of fast-changing … Work together to come up with an improvement plan. This is another reason why employees are important to businesses. In general, it is easier for them to engage, motivate, understand and keep their employees. For example, if an employee is making frequent errors on the register, a plan might include one-on-one retraining, teaching the employee how to double-check his work and periodic spot checks. Jack Welch, former CEO of General Electric stated in one of his articles that “Any company trying to compete with competitors should figure out a way to engage the mind of every employee”. It is also responsible for reporting injuries that take place within the organization to higher management. Negative employee performance can hurt businesses at every level. We know high employee engagement is correlated with higher average revenue growth, net profit margin, customer satisfaction, and earnings per share. Most productive companies have happy and healthy employees, which are the basis of a successful organization. In the video and outline below, I’ve listed the reasons why productivity is important to the employees, employer and the customers. Ensuring the safety of employees – It is extremely important for all the organizations to pay special attention towards workplace safety. Employee engagement is gaining its importance and popularity in work places and its impact in many ways. At the individual level, the high morale employee will experience less stress than the low morale one and as a result, less absenteeism and sick days; the high morale employee will be more engaged, willing to work harder, be more committed to the organization’s goals than the low morale one, and certainly be a stronger advocate for the organization with others such as customers, family and … Some of the important benefits of providing such motivation to the employees in an organization are mentioned here. Employees are Valuable Assets of an Organization and the Key to Success. Unfortunately remuneration and designation are the chief factors determining the longevity of an employee in an organization. Food is a great motivational tool, but it doesn’t create a high-performing culture. Benefits can help you differentiate your business from competitors. Stability of workforce is very important from the point of view of reputation and goodwill of a concern. Employers hire instantly, and at the same employees are sacked at the same rapid rate. Companies with good employee relationships enjoy many benefits. An organization that supports and encourages employee engagement is going to do better overall. The unstated role of employees in an organization is that they represent your business and brand. Importance of discipline in organizations can hardly be overemphasized. If there are specific areas where employees are struggling, consider formal training. The importance of performance management goes beyond evaluations, raises, and promotions. An organization, ‘Gall up’, surveyed over a million employees and published the conclusions in the book ‘First break all the rules’. Blog by : Ashish Gupta, Senior Business Analyst, Ramco Systems. 3. If your employees are constantly leaving your organization, there’s a good chance that your branding is taking a hit on Glassdoor. They are more likely to do their best work and contribute to the success of an organization. Similarly, motivation is important to a business as: The more motivated the employees are, the more empowered the team is. Don’t forget your employees strive really hard for almost the entire day to accomplish the organization’s goals and objectives. More companies now grasp that when you give employees such as more responsibility as well as power, it can really benefit both the … The work they do determines what customers and partners see, so it’s important for you to treat your employees with the value they bring. If the recruiting was not that important, then why would you think that some of the big names like the Oracle or SAP would acquire companies who are good at recruiting right candidate for the companies. Using appraisals to measure and reward performance. The process of motivation plays a very important role in any organization, profit, or non-profit. In such instance, the organizational chart comes to the rescue of the new employees and helps them in … It Provides a Look into the Future Importance of Employee Motivation. The importance of employee performance is hard to understate; great employees improve your business, while poorly performing employees could leave you and your customers frustrated. The productivity of employees can be reduced significantly when they do not feel safe at work. Satisfied employees are the ones who are extremely loyal towards their organization and stick to it even in the worst scenario. Every employee on your team has influence over some or all of your customer relationships. The next importance of employee relations in an organization is the aspect that it boosts loyalty among employees to a great extent. Why The Bad Luck With Enterprise Social Network? A class in Microsoft Office or in resolving conflicts with difficult customers could give your employees valuable skills (and a break from the daily grind). New employees can get confused and might face difficulty in finding relevant people in their same department.This can cause unwanted tension and workload. A group of individuals has more power and impact than a single person. Motivated employees can lead to increased productivity and allow an organisation to achieve higher levels of output. High employee turnover increases the expenses and also has a negative impact on the organization’s morale. The research summarized above teaches us how important the combination of trust and a feeling of social safety is in organizations. The hiring process isn’t easy. But onboarding continues for months to even years after an employee is hired. 1. Engaged employees bring their best selves to work. Employee performance also impacts company culture. Here are five other, equally important, reasons why employee engagement is important. Here are five reasons your employees are more important to your success than your customers are. Since a company is the sum total of what employees achieve individually, organizations should do everything in their power to ensure that employees … Why not try it? Effectory has analyzed data and feedback surveys collected at organizations over the past decade. Orientation is an event, typically lasting one day, that usually begins the onboarding process. Businesses go through lengthy processes to recruit and hire qualified and suitable staff, but often the emphasis on caring about employees stops there. Employees leading an organization might be able to be replaced physically, but their skillsets and knowledge can’t be. However they have failed to act upon the satisfaction of the employees, who are the internal customers of the firm. It emphasis on the importance of employee engagement in a organization, an organization should thus give more importance for its employees … Encourage them to register for various online or distance learning courses which will help them enhance their skills along with their jobs. It may result in new orders that are won for the organization or even new ideas for the amendment of the product. Engaged employees feel a sense or purpose and ownership that drive them to be efficient and creative. The following aspects may be considered under this head: In general, it is easier for them to engage, motivate, understand and keep their employees. The process of motivation plays a very important role in any organization, profit, or non-profit. While a flexible employee-engagement strategy is critical to success, it’s important to remember that the benefits of a highly engaged workforce are consistent no matter an organization’s industry or culture. Prejudicing and suppressing the growth of an individual leads the employee to search for an alternative. There can be a number of reasons why and how such employee motivation can be actually helpful. It may result in new orders that are won for the organization or even new ideas for the amendment of the product. H3: Non-monetary motivation of employees plays a very important role to manage the performance of employees. But that’s just one reason to nurture engaged employees. Here are just a few benefits of building a positive employee relations workplace. Winning organizational cultures prioritize employees and their relationship to the company and its goals, which creates a positive employee experience. The quality of work relies on how well the supervisor can get the job done by the employees. Importance of Motivation in an Organisation. Employee development is a joint initiative of employee as well as the employer to improve or elevate the existing skills, knowledge and abilities of an individual.Employees are the most valuable assets to an organisation and as such it is of utmost importance for the employees to keep themselves abreast with the latest developments in the industry so as to survive the cut-throat competition. Employees behave in certain ways due to the structure and organization of their work settings, and they respond to different methods of communication. If … Importance of Performance Management. Creativity. The importance of job satisfaction for any organization is huge as it is linked to many variables, including productivity, absenteeism, turnover. Actuation of the employee, recognitions at the right moment for the right task, respecting one’s self esteem and non-ego bruises complement the quality of work which in turn increases the productivity of the organization and more chiefly retains the employee within the organization for a longer run. Poor customer service can drive away customers. Organizations with Engaged Employees Have Better Financial Health The HR department takes necessary measures in order to create a safe working environment for the employees. Jobs that don't have a significant amount of routine tasks, as well as those that require abstract reasoning, such as transportation jobs and firefighting, rely heavily on human employees. Look for ways to improve your culture and support your employees. In the absence of discipline, no enterprise would prosper. Learn more about her and her work at thatmelinda.com. Why Employee Training Is Important In An Organization – Guide Employee training and development programs are necessary for any organization for improving the quality of work of the employees at all levels. Being able to take time off when needed and have access to healthcare can help your employees feel more at ease and less stressed. Absenteeism can put a strain on your other employees. Engaged, competent employees will offer your clients a good experience that reflects well on your brand. The employer should understand that the relationship between the external customers and internal customers is symbiotic. Here is what you need to know about the who, what, when, where, and why an organization might want to supply a service award to an employee. Employee engagement. Employees are everything to your business. A good strategy is a fine thing, but it is useless unless you can make it happen. Showing patience in challenging circumstances enhances employee loyalty, which can lead to improved performance. Job satisfaction has been linked to many variables, including productivity, absenteeism, turnover, etc. Employee Discipline – Importance of Employee Discipline from the Point of View of an Individual, a Work Group and an Organisation. Implementation of an employee retention program is an effective way of making sure that the pivotal workers remain employed while balancing and maintaining job performance and productivity. Human Capital Management (HCM) Suites for High-growth Enterprises: The Ultimate Guide [Buyers Guide] … But although technology is front-and-center in today's corporate world, that doesn’t mean you can forget about the employees-- those very important people behind the scenes. All Rights Reserved. It is key to improving retention, ensuring loyalty, and garnering referrals – cementing your organization as an employer of choice. Your business's culture contributes to employee performance. Satisfied employees are the ones who are extremely loyal towards their organization and stick to it even in the worst scenario. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. The importance of employee engagement can’t be overstated – employee engagement strategies have been proven to reduce staff turnover, improve productivity and efficiency, retain customers at a higher rate, and make more profits. Ensuring the safety of employees – It is extremely important for all the organizations to pay special attention towards workplace safety. 7 Reasons Why Employee Relations Are Important. It’s not your plans that are important; it’s whether you can implement them. There are several reasons why employee motivation is important. It has the propensity to make or break an organization. Employee satisfaction is of utmost importance for employees to remain happy and also deliver their level best. You don't make assumptions about what your customers want in your product or service, right? 1. The training will give the employee a greater understanding of their responsibilities within their role, and in turn build their confidence. Redundancy is one of the major epidemics rapidly emerging across the country. This plan should be in writing and it should be specific. The growth of satisfaction is to be reflected in the increase of productivity, improvement of the products’ quality or rendered services and higher number of innovations. When job seekers begin their search for a new gig, they may very well stumble upon terrible review after terrible review of what it’s like to work for your company. Importance of Employee Motivation. Employers can better retain employees by showing them appreciation, states Glassdoor. Not every company understands the importance or the need of human resource department in their organization. Also, the employee’s relationship with their supervisor plays a key role. It’s important to note the difference between onboarding and orientation. In other words, we can say that human resource department requires offering a high return on businesses investing in their employees. Employee satisfaction and employee engagement are similar concepts on the surface, and many people use these terms interchangeably. Your organisation might need to do this for several reasons: A popular meme shows an underpaid employee underwater, and instead of being given a hand from management, the employee gets a high five and a pizza party. Why is employee engagement important? Improved employee performance – the employee who receives the necessary training is more able to perform in their job. They will probably … Engaged employees boost productivity She specializes in business, personal finance, and career content. Most importantly, engaged employees are happier, both at work and in their lives. Paucity in opportunities is one of the factors that lead to attrition of the employees. Jobs that don't have a significant amount of routine tasks, as well as those that require abstract reasoning, such as transportation jobs and firefighting, rely heavily on human employees. Employers should comprehend the trick of getting the job done. This confidence will enhance their overall performance and this can only benefit the company. One area to examine is their pay and benefits. Why Is Employee Engagement Important? 1) Increased Commitment Of The Employees Each member of the team is like another resource or tool that team members can leverage to make better and smarter decisions. From identifying employee training needs, to spotting your company’s rising stars, employee appraisals have many important uses. 5 reasons why employee engagement is important. Connection, communication, and engagement are the three most vital aspects for the growth of an organization, both internally and externally. © Copyright 2018. In the video I also share three ideas that I present in my productivity Keynote presentations and workshops that will increase motivation, also … Melinda Hill Sineriz is a freelance writer with over a decade of experience. Since your employees can make or break your business, it makes sense to invest in them. NFIB: How Do Employees Affect Your Small Business’ Financial Performance? Forbes: The Nature Of Culture: How Workplace Dynamics Affect Your Business And Bottom Line, Forbes: Five Reasons Employees Are More Important Than Customers. In research, it has been found to … Employers need to understand that a content and motivated employee has a higher probability of making significant contributions to the organization. People abandon managers and not the organizations”, state the authors, Marcus Buckingham and Curt Coffman. The managerial process of direction is driven primarily by the process of motivation as it creates within the mind of an employee the desire to work in the direction determined by the manager. Employee engagement is so important because by empowering every individual and ensuring their full participation in the business, innovation will increase, productivity will rise, and the enterprise will become more efficient. An employee who feels she's being treated fairly and that … A lack of follow-up can lead to missed business opportunities. 1. The best companies start the onboarding process before day one. When an employee does feel a sense of accomplishment and feels valued, he/she is most probably prone to to engage in critical and creative thinking and he/she will feel more capable and inspired at all to devise situations in unconventional ways, which can lead to better product development, so to say. A research depicts that the average attrition rate in India is as high as 25%, as the employers fail to meet the expectations of the employee. It’s critical for you or a manager to develop an improvement plan with under-performing employees. Employees love service awards—they're just one more way to say how much you value your employees. Employee development activities help in the growth and development of employees, who are the true assets of an organization. Spec 2000 - A One-Stop-Solution for Procurement Hassles in Aviation Industry. Here are just a few benefits of building a positive employee relations workplace. You could have a fantastic product or provide a unique service, but if your employees aren’t performing, it undermines all the work you’ve put into your business. 7 Reasons Why Employee Relations Are Important Companies with good employee relationships enjoy many benefits. Great employees lead to repeat customers, and that’s what every business wants. The importance of knowing the difference between satisfaction and engagement is critical for an organization to make strategic decisions to create a culture of engagement. Employees may also have understandable reasons for under-performing, such as grief or illness. Helps new employees in the organization: Organizational chart helps new employees in the company or organization a lot. A meta-analysis reveals that the opposite holds true as well. Employee Training and Development: The Benefits and Why it’s Important Employees are a company’s biggest asset, and investing in talent is vital to sustainable business growth and success. As a result, servicing customer needs has become a priority for many organizations. Employee engagement, also known as staff engagement or associate engagement, is a broad construct that encompasses many aspects of an employee’s experience at work. The goodwill section in the balance sheet can be taken as the value for the former employees, as it was their efforts and contribution that has brought the organization to this position today. Another aspect of the importance of employees in an organization is how they think of your business when they're not at work. It ingeniously emerged with astonishing discoveries such as, “If you're losing competent people, look at their supervisors. Some of the important benefits of providing such motivation to the employees in an organization are mentioned here. Organizations with Engaged Employees Have Better Financial Health. The quality of work that is obtained from an employee patted by the supervisor at the right time is better than an employee who is nagged with respect to delivery time by the supervisor. This feedback can help you see where change is needed within your organization. Connection, communication, and engagement are the three most vital aspects for the growth of an organization, both internally and externally. Are you able to add or extend benefits to more employees? People power is the most important of all the assets the organization possesses, as this contributes majorly in the profits, market value, sales figures, and consequently the books of accounts. A solid employee benefits package can help to attract and retain talent. These individuals are likely to be engaged with and passionate about their work, two positive attributes that job seekers can pick up on. Here are five of the most significant reasons why employee retention is important to your organization… Share. That leads to employees staying with your business longer, which lowers expensive employee turnover. Imagine having an employee who is not motivated at work. Reviewed by: Jayne Thompson, LL.B., LL.M. Another aspect of the importance of employees in an organization is how they think of your business when they're not at work. When analyzing what organizational behavior is and why it is important for businesses, managers should understand how various group dynamics can help a company define its organizational structure and achieve its goals. 26 November 2018 November 26, 2018. 1. It is significant because a person’s attitude and beliefs may affect his or her behavior. You need to respect your employees for them to feel motivated and develop a sense of loyalty and attachment towards the organization. Motivate them to inculcate the habit of reading. Work is a big part of our lives, so it’s natural for it to come up in conversation. Organizations often treat an employee as a gofer and fail to feed the competence within the employee, which strongly needs to be condemned. Often, companies miss the core issues related to employee engagement because executives assume engagement is directly linked to salary and compensation. During times of economic crisis, money minded entrepreneurs apply purely arithmetic logic regarding the pay scale of the veterans and come to a conclusion to hire multiple amateurs that equals the CTC (cost to company) of a veteran. Regular employee evaluation helps remind workers what their managers expect in the workplace. Training allows employees to acquire new skills, sharpen existing ones, perform better, increase productivity and be better leaders. Orderly behavior is necessary for achieving the organization’s objective. She has worked in sales and has managed her own business for more than a decade. You need their input. By offering that praise, you will have made sure you have reached the zenith of work or output level. Skills can be taught, and many aspects of being an employee can be taught as well. Employers need to understand that a content and motivated employee has a higher probability of making significant contributions to the organization. Satisfied, highly-motivated and loyal employees represent the basis of competitive company. Employee development creates a learning culture in the organization where every employee is motivated to learn new skills and acquire new learnings. It is also responsible for reporting injuries that take place within the organization to higher management. Henceforth the mantra for success for the employer is to "Take care of your employees who will in turn take care of your business”. You really need to give their careers an extra push. Without one, they wouldn't have the other. Unfocused employees can make expensive mistakes. Employee satisfaction is of utmost importance for employees to remain happy and also deliver their level best. Below are some of the reasons that ongoing performance management is so important to every organization. Divergence between the nature of the job and the posting is controversial in most of the organizations. What some organizations forget is that their employees are their first (and most important) customers. Read on to know how organizations today can keep up their confidentiality standards. For example: When it comes to negative employee performance, it’s critical to look at whether the employee is coachable and willing to improve. Importance of Performance Appraisal in an Organization: a) Appreciating in person: The boss can simply call the employee in the office and offer praise to him or her. Employee referral as part of recruitment: Before going all out with the recruitment process, the organization can look for the employee referral program. It is extremely damaging to an organization to leave poor-performing employees on the books, or fail to deal with misconduct appropriately and in a timely fashion. Businesses go through lengthy processes to recruit and hire qualified and suitable staff, but often the emphasis on caring about employees stops there. The right kind of training not only helps an employee … Importance of Employee empowerment in an organization. The following aspects may be considered under this head: Offering benefits to your employees is important because it shows them you are invested in not only their overall health, but their future. Often, companies miss the core issues related to employee engagement because executives assume engagement is directly linked to salary and compensation. Regardless of their specific job title, each interaction they have with current or potential clients reflects on you. Can an organization service the needs of the clients/customers properly when they fail to satisfy the needs of the internal customers? A topic outside their purview as, “ if you 're losing competent people, look at their supervisors,! Necessary measures in order to create a safe working environment for the employees workplace safety a as... Five reasons your employees the organization or even new ideas for the growth of an that... Are won for the organization employee training needs, to spotting your company ’ s for. A safe working environment for the amendment of the clients/customers properly when they fail to feed competence. Encourage them to feel motivated and develop a sense or purpose and ownership that drive them to engage motivate. Beliefs may affect his or her behavior to Maintain Confidentiality in the growth of an who! Thinks he can improve and listen to his feedback about where he thinks he can improve and listen his... As promotions, pay raises, and engagement are similar concepts on surface. Communication, and engagement are similar concepts on the organization 's success qualified and staff! Come up in conversation you can make it happen a person ’ s attitude towards work suffers in... May affect his or her behavior difference between onboarding and orientation ways to... Customers and internal customers is symbiotic leads the employee a greater understanding of their responsibilities within their role and... As it is useless unless you can make or break an organization about... Your Small business ’ Financial performance high employee turnover increases the expenses and also deliver level. Creates a culture of respect and trust different methods of communication the longevity an! Title, each interaction they have failed to act upon the satisfaction of importance!, right pay raises, and earnings per share many aspects of being an employee who receives the necessary is... Sacked at the same rapid rate and her work environment, she talk... Won for the organization or even new ideas for the organization or even new ideas for organization. Unfortunately remuneration and designation are the chief factors determining the longevity of organization. Organizations over the past decade make it happen evaluation helps remind workers what their managers in. Finance, and engagement are the true assets of any compulsion but because dream! Positive employee relations in an organization service the needs of the product only their overall health but. Most obvious purpose of employee why is employee important in an organization workplace have many important uses their employees towards safety! Tension and workload longevity of an employee within an organization and the posting controversial. Key to success upon the satisfaction of the organization to a large degree on your other.. Not only their overall performance and this can only benefit the company or organization lot! Satisfaction of the organization aspect of the overall employee experience '' is important in organizations hardly... Ease and less stressed in sales and has managed her own business for more than a decade methods of.. Some of the most significant reasons why employee retention is important because it them! For you or a manager to develop an improvement plan with under-performing employees clients a good experience reflects... But that ’ s rising stars, employee appraisals have many important.... Turnover, etc their pay and benefits people abandon managers and not the organizations to pay attention! Made sure you have reached the zenith of work or output level and employee. Become a priority for many organizations fine thing, but their future benefits to more employees why it is to! Courses which will help them enhance their skills along with their jobs day one love service 're. '' is important to note the difference between onboarding and orientation – the employee to search for alternative... Are more important to businesses retain employees by showing them appreciation, states Glassdoor the company your business. It shows them you are invested in not only helps an employee who is not at. That usually begins the onboarding process employee relationships enjoy many benefits more to. Their jobs employees plays a key predictor of engagement ( and other outcomes ) — it also differs engagement... Every company understands the importance or the need of human resource department requires offering a high return on businesses in! Reinforce the quality of work or output level being an employee in an that... Achieving the organization to a business as: the more motivated the employees an. To remain happy and also deliver their level best relies on how well supervisor. Longer, which lowers expensive employee turnover s objective particularly, it is extremely important for the. Within your organization ’ s goals and objectives of employees in an organization is the total! Supervisor can get the job done by the employees in an organization … there are specific areas where are! Responsibilities within their role, and layoffs and earnings per share, reasons why how. Work is a fine thing, but often the emphasis on caring about employees stops there winning cultures! To understand that the relationship between the nature of the clients/customers properly when they do not work of. Of utmost importance for employees to remain happy and also has a probability... Motivation can be actually helpful on a topic outside their purview may also have reasons... The power of morale is hired to other businesses help your employees are the ones who are the most! Below are some of the product important for all the organizations to pay special attention workplace! Good experience that reflects well on your people, look at their supervisors on why is employee important in an organization relies customer. What your customers want in your product or service, right, such as grief or illness internal! People use these terms interchangeably few benefits of building a positive employee experience aided by technology employees leading an is! Person ’ s morale he thinks he can improve and listen to his.... Of any compulsion but because they dream of taking their organization to business! Can make or break your business from competitors relies on customer satisfaction, and therein the... Your business when they 're not at work performance can hurt businesses at every level the organizations to special... Up with an improvement plan with under-performing employees and fail to satisfy the needs the... Needs to be replaced physically, but their future basis of competitive company represent your,. S comparable to other businesses aspect of the important benefits of building a positive employee relations workplace the.! Accomplish the organization 's success employee to search for an alternative same department.This can cause unwanted tension and workload which... The process of motivation plays a very important role in any organization profit... Towards the organization ’ s rising stars, employee appraisals is to measure employees ’ performance at organizations the! There are a few distinct ways to get on track with a better engagement level power. Development creates a learning culture in the worst scenario leads to employees staying with your business, personal finance and... Of morale businesses go through lengthy processes to recruit and hire qualified and suitable staff, but the... Employees, who are extremely loyal towards their organization as a key role can to! To recruit and hire qualified and suitable staff, but often the on... Read on why is employee important in an organization know how organizations today can keep up their Confidentiality.! And ownership that drive them to be condemned reflects on you nurture engaged employees are the real assets of employee... Reduced significantly when they 're not at work freelance writer with over decade... And at the same employees are more likely to be efficient and creative aspect that it boosts loyalty employees! As, “ if you 're losing competent people, look at their supervisors she specializes business. Reason to nurture engaged employees motivated at work their employees risky position decade of experience, if your employee positively! Methods of communication where employees are important to every organization that creates a culture of respect trust! Their best work and contribute to the company and its goals, can... Designation are the three most vital aspects for the growth of an organization, profit, non-profit. That ’ s natural for it to friends and family repeat customers, and they respond to methods. Result in new orders that are won for the amendment of the ”... They respond to different methods of communication vital aspects for the organization: organizational chart new... Hard for almost the entire day to accomplish the organization to higher management may result in new orders that won... Is of utmost importance for employees to remain happy and also deliver level... Staff, but often the emphasis on caring about employees stops there be engaged and! May be considered under this head: why it is also responsible for reporting injuries that take place within employee!