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How to Increase Gross Profit by Improving Employee Engagement

This post was written by Michele Bossart, Marketing Manager of Patriot Software, Inc.


Financial success and employee engagement are often considered two separate entities: when sales are high and costs are low, a company thrives; when employees feel connected to their work and trust leadership, they’re engaged.We often believe one can happen without the other. And that might be true. But what I challenge you to do, is use one to fuel the other—increase financial success by improving employee engagement.


There are multiple accounting benefits of employee engagement. One of the major accounting benefits is your ability to increase gross profit. Try these employee engagement practices for a better chance of increasing the gross profit of your organization.


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It may go unnoticed, but greenery in the workplace could lead to more engaged employees. In 2011, a study was conducted that compared the performance of participants in a room with indoor plants vs. a room without indoor plants. The participants in the room with indoor plants performed better on problems that required sustained concentration and attention.


The increase in employee engagement as a result of the presence of plants can be found in cubicles, as well. So, whether you have open workstations or cubicles in your workplace, adding plants to your work environment can help foster more engaged employees.


Don’t Ignore Evolution

In his book “The Best Place to Work,” Ron Friedman called upon our early ancestors when he described why working in a safe environment can lead to higher engagement and gross profits. In order to survive and thrive, our ancestors had to be keenly aware of the dangers within their surroundings. This survival trait is still present today. Leaving an employee’s back exposed could lead to decreased performance because they are using part of their mental energy to evaluate what is happening behind them.


Consider adjusting your employees’ workspaces so that their backs are against a wall. The setup will free their concentration for revenue-generating tasks.


Employee Friendships are Good for Retention


The social benefits of workplace relationships can actually lead to more engaged employees. In fact, the top quartile of engaged employees within your company can achieve 21 percent more productivity, 22 percent more profitability, and lower turnover (25 percent lower in high-turnover companies, and 65 percent lower in low-turnover companies) compared to the rest of your employees.


Some of the best motivators of workplace friendships are how close employee workspaces are located to one another, and how often they are able to speak to one another about their personal, home, or work lives. So, be conscious of where employees come in contact with one another. Cubicles can be a great way to cut down on distractions, but if the walls are too high, you could be isolating your employees and preventing the role of proximity in employee relationship building. Common spaces, such as a shared kitchen or the classic water cooler, could actually encourage team-building encounters.


Facilitate Good Manager-Employee Relationships

You might be tired of hearing this one, but people don’t quit their jobs, they quit their managers. Improving your profits could be as easy as creating better employee-manager relationships.


But, we know that increasing manager effectiveness is easier said than done, right? Let’s consider an actionable insight from Laszlo Bock. In his book “Work Rules,” Bock mentions, “The key to balancing individual freedom with overall direction is to be transparent.” This means that you should encourage your managers not to be knowledge hoarders or “silent sufferers.” Managers can facilitate healthy relationships with employees by being upfront with expectations and concerns for the team.


As with relationships among employees, healthy manager-employee relationships can help to reduce turnover and add to your bottom line.


Do you want to increase gross profit? Start by improving employee engagement. Consider implementing some of these actionable steps within your organization to grow your bottom line. Then, collect feedback on your progress with a proven employee engagement survey.


Free ebook! The Complete Guide to Conducting an Employee Engagement Survey


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