While there are many fads that come and go, one that is sure to stay (and not so much a fad) is that of employee engagement. Not only because it makes employers shine a spotlight on employees, but in turn, the recognition and rewards offered to them boost operating margins by up to 3 times according to a report by Willis Towers Watson, and according to a different study by Gallup, profitability and productivity are both increased by over 20%.
While most large organizations are reported to put 1-2% of their profit earnings into funding their Employee Engagement initiatives, most don’t, despite the fact that only that small fraction would greatly increase their overall production and profit. For small to medium-sized businesses, these kinds of growth metrics are more than necessary and would help benefit them greatly.
The problem with attaining this kind of value is that most SMBs, depending on their size, don’t have as much of a budget as larger companies to give to their employees; what’s more, is taking a portion of your employee engagement budget and putting it towards paying monthly for a platform that will let your employees be recognized is somewhat counter-intuitive.
Investing in Employees is Where Your Money Should Go!
The phrase, “invest in your employees, not in software” is more valid in these cases for the SMB market. The more you invest directly into your employees the more of an ROI you’ll see on your gains from their productivity and the discretionary effort that they’ll put into your company.
Applauz is the only platform in which you can use, recognize, and reward your employees in such a way that your entire Employee Engagement budget goes directly to supporting your employees; all of the benefits with the only cost going towards rewarding your employees. You can read more about the benefits gained with the Applauz platform here.
Calculating Your Savings with Applauz
Factoring the cost of savings from absenteeism, profitability gain, and overall engagement can sometimes be daunting to calculate as the figures do add up. You can calculate your savings with our ROI calculator and get an idea of all the savings and profits you’ll accrue here. As absenteeism costs businesses in Canada around 16 billion, and the U.S. even more, you can be sure that the savings found in reducing it, added to the productivity and bottom-line gains received can be significant.
Your budget for Employee Engagement is less something that costs your company and more of an investment in your company’s growth and sustainability. Establishing a good culture of recognition and appreciation will be returned to you through reduced absenteeism, increased profitability, productivity, and overall effort from your employees. It’s not only that they’ll be taking less time off, but they will be putting more effort into their work.
If you’re interested in these kinds of savings, be sure to schedule a consultation with our Employee Engagement Specialists so you can be guided along the next steps of what you need to do to start saving today.