Employee 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. 

So 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.

So 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 of money.

So, what are you going to do today to help your employees feel more connected?

Tammy Mullin