Impact of Empowerment on Employees Retention

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Organizations that have survived (or thrived) during the recent economic downturn have focused with laser-like intensity on the execution and performance of the business. But homing in on traditional business results has also escalated demands on the workforce. Staff cuts, tighter budgets and increasingly difficult workloads have created an environment in which employees are feeling overworked, undervalued and disengaged. A focus on business results may have served organizations well in the short term, it won’t be enough to keep them ahead of the competition moving forward. All employees – and top performers in particular – will need a deeper reason to stay when the economy recovers and it again becomes an "employee market". They will need to feel they are appreciated for their contributions, have the resources to do their jobs well, and have clearly defined opportunities to develop and advance within the organization. In short, employees might move away from simple employment and robotic execution to true empowerment. What Is Employee Empowerment? Empowered employees are engaged employees: • They have the tools they need to be productive leaders and contribute to the success of the business • They have the tools they need to learn and grow • They have the tools they need to connect and collaborate with colleagues and others throughout the company Why Does Having an Empowered Workforce Matter? Empowerment can be viewed as a key performance indicator for the health and wellness of an organization's people strategy. Why? • An empowered workforce is more engaged. Engaged employees drive higher customer satisfaction and boost the bottom line. The Gallup Organization reports that companies with higher-than-average employee engagement also had 27 percent higher profits, 50 percent higher sales and 50 percent higher customer loyalty. • An empowered

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