What Does Employee Engagement Have to Do with Unemployment Costs?
Engagement is all the buzz these days. We
see numerous articles written about it and many companies touting how to improve it. As
this press release from the Association of Psychological Science (APS) “Happy
Employees May Be the Key to Success…for Organizations” points
out there is definitely a proven connection between employee engagement, employee
retention and organizational success.
what does that have to do with your unemployment costs? Well,
as we pointed out in our blog “The
Hidden Costs of Employee Turnover: Increased Unemployment Taxes”,
employee retention can impact merit-rated employers in two ways. First,
lower retention rates can lead to more separations and more claims filed. Second,
low retention leads to higher taxes paid in the year on payroll dollars since unemployment
taxes are calculated on a base wage per employee. When
you have to replace a position, that wage base starts over and you could end up paying
double taxes for the same job if it turns over.
how do you improve employee engagement? What
I really liked about this press release from APS is the connection made on the importance
in making employees feel connected. It
suggests to “clarify
expectations for employees by helping employees see the ultimate outcomes the organization
is working to achieve and how they play a role in achieving those outcomes.” That’s
a simple but powerful message and the best part is, it doesn’t have to cost a lot
what are you going to do today to help your employees feel more connected?
This weblog is sponsored by TALX.
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