Boost Business Growth With Your Employees

Contemplating how to grow your business can feel overwhelming. The options are almost limitless: invest in new technology, upgrade equipment, expand your online presence, add a new location, etc. It is easy to imagine how any number of these concrete changes could power growth— the hardest part is deciding which ones to focus on. But there is another, more subtle change that can provide an even larger impact, and it has to do with your employees. It’s called employee engagement.

Compared to new software or more efficient machinery, employee engagement is intangible. Its impact is harder to define or predict, making it daunting to pursue. But not pursuing employee engagement deprives you of a large opportunity: engaged employees can single handedly increase company profitability.

Engaged Employees Propel Growth

What does it mean for employees to be “engaged”? Gallup defines employee engagement as the “involvement and enthusiasm of employees in both their work and workplace.” In other words, engaged employees are focused on their work and passionate about their job performance. While it makes sense that engaged employees positively impact their company, the surprising part is how much.

According to Gallup’s meta-analysis of over 112,000 work units and 2.7 million employees, employee engagement is strongly linked to company performance. When comparing companies that rank in the top quarter for engagement with those in the bottom quarter, sales differed by 18%, customer loyalty by 10%, and profitability by 23%. Employee engagement clearly impacts a company’s customer base and earnings— both crucial aspects of growth.

But, how do you improve employee engagement? Below, we will discuss some simple strategies that go a long way toward maximizing your company’s potential.

Survey Employees Regularly

As the saying goes, many heads are better than one. Instead of upper management speculating about what could be improved, it is more efficient to simply survey your employees. Not only do their answers inform company strategy, but asking for input also shows team members that their thoughts are valuable. When changes are made based on those ideas, employees feel responsible for the company’s improvement— adding pride and meaning to their work.

One of 1719 Partners’ portfolio companies, Custom Label, took this approach. The company asked all employees: what would you buy to help customers and the business, what is the dumbest thing the company does, and who are the best people who have left?

As a result of the survey, Custom Label invited an employee back, and she proved crucial to reshaping the business. Without this survey, Custom Label would have missed out on that employee’s influential growth strategy.

Increase Employee Ownership

Giving employees independence allows them to take ownership of their work, increasing job satisfaction. By nature, people need a purpose, and workplace responsibility brings purpose: team members feel that they are important and cannot be replaced by someone else. This makes work more fulfilling, and a fulfilled employee will go the extra mile to make the customer happy.

In addition, giving employees freedom allows them to complete work in the way that best fits the situation— and the customer.

Reward for Going Above and Beyond

When Custom Label rewards employees for going beyond their job descriptions to satisfy customers, an association is created between customer happiness and employee happiness. The customer is satisfied, and the employee also gets a reward. By extension, the employee is taking part in the company’s success as they add to it. The result is employees that are eager to build company success, instead of just punching the clock and waiting for a paycheck.

Rewarding employees for a job well done also, on a basic level, communicates that their hard work does not go unnoticed. Even when rewards are not possible, a simple “thank you” shows the same recognition. People want to feel appreciated because it shows they are valued.

Make Work a Community

Everyone wants to be part of a community, and creating a social bond between coworkers makes the hard days more enjoyable. When employees are comfortable with each other, they are also more likely to collaborate on projects. This, in turn, can increase task efficiency.

Structuring non-work-related activities promotes bonding. Custom Label offers family events, and sales and service team members enjoy company trips to places like Tahoe and Hawaii. While on the surface these trips may seem like an unnecessary expense, this strong display of employee appreciation keeps team members loyal to the company.

The Bottom Line

Investing in your employees pays off in the long run. Custom Label’s growth by a factor of ten in 20 years is a testament to that. When asked what single factor played the largest role in this growth, the owners credit employee culture— in other words, a work culture that promotes employee engagement.

In short, if you invest in your employees, they will invest in you. Whether that means paying employees more than the industry average, holiday parties, or simply demonstrating that you value their insight, every effort matters. And if you are considering investing in new software or other assets, employees offer perspective on what is pertinent.