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Importance of Employee Engagement and Morale

Robert Burdwell - Sunday, January 13, 2019

When it comes to promoting a high level of performance in your staff, it doesn’t matter how good your onboarding process is- if morale and engagement are not part of the equation, you will not get the best out of them. Research has shown the powerful and direct correlation between performance and morale. While there’s a balance to be struck between demanding more of your team and nurturing morale, too many organizations error on the side of being demanding.

The Cost of Demanding too Much in Retail 

While being too demanding on employees is always harmful to your bottom line, your reputation, and your future providence- you can get away with it a bit more in industries like factory production, for example. But in highly customer-facing areas such as retail, low employee morale is going to directly effect profits.

Employers should understand that a human being is a limited system. That means you can’t get more out than you put in. It can be tempting to neglect team building to cut corners. But that will have a direct effect on the quality of service your team delivers. When a customer catches the business end of a bad day, they will let you know.

The tension will really start to mount when your staff starts using up all of their paid leave just to cope with an unpleasant work environment. Once their paid leave is spent, their next big sick day is going to hit a lot harder- and that’s when you start losing people.

The High Cost of High Turnover

Organizations with high turnover do not develop high levels of competence and seniority. In retail, that means you miss out on the high value of having workers with longstanding relationships with regular customers. From the customer’s perspective, a high turnover rate means they never feel at home in your store. Over time, they can develop a real sense of instability that makes them prone to jump brands when new competition arrives.

High turnover hinders the company’s reputation. It also eliminates an important controlling factor on your hiring costs. At the same time, it also makes your training budget leak profusely as you have to continually hire and train new people.

The Bottom Line

In the end, all of these costs will deny you a thriving and engaged workforce. The extra costs of not nurturing high morale will deny you the ability to leverage opportunities to expand, upscale, and grow.

Frankly, the costs of low morale and shoddy team engagement are fairly intuitive. But when your company is already firing on all cylinders- finding a solution to the problem is tricky. But suppose there was a tool that could work in the background to quietly help you manage your corporate culture in such a way that morale and engagement will naturally flourish. That’s where Human Capital Software comes in.

What Human Capital Management Can do for You

Surely you’ve heard about the massive amounts of “big data” that’s being scraped out of the web, digital user experiences, and corporate metrics of all kinds. It might interest you to know that those mountains of data are not going to waste. Specialized AI systems and experts are using it to formulate automated systems that can help you generate better morale and higher worker engagement in every phase of the employee experience.


While you spend your valuable time calculating and making high level decisions for your company, Human Capital Management (HCM) can work quietly in the background to make sure no cost effective morale boosting opportunities are missed.

Here are 5 important ways HCM works for you.

Payroll processing: Never miss another payday with automated processing and payment.

Talent management: Find and train the best people and assign them accurately with AI guided talent management.

Education & training: Select statistically optimal training types and modes to get the most value out of training sessions.

Benefits: Offer the best benefits practicable to attract the best talent using refined algorithms to keep costs low.

Employee access: Offer a host of self service tools, enabling team members to get their questions answered and find the help they need without waiting exorbitant amounts of time.

In conclusion, employee morale and engagement are the key to top-level performance. This is especially true in retail where employee experience directly effects customer experience. Now, with HCM systems to help you manage the minutia of employee experience- you no longer have to worry about micromanaging your company culture to get the high performance you’re looking for.

Let Burcamp show you how to manage your talent, training, benefits, and employee engagement using People First.

Human Capital Management

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