Taking care of employees is an investment with measurable results. Here’s how it works. 

Why Employee Engagement Matters More Than Ever

Let’s be real — taking care of your employees isn’t just a nice thing to do; it’s a smart business move. Happy, engaged employees aren’t just more productive — they stick around longer, deliver better customer service, and save you money in the long run.

Remember the Great Resignation? That was rough. But now we’re facing something just as challenging: the Great Detachment. People might not be quitting in droves anymore, but a lot of employees are just ... checked out. In fact, Gallup says only 32% of U.S. employees are actually engaged at work. The rest? They’re either going through the motions or completely disengaged.

This lack of engagement is costing businesses big time. Disengaged employees are less productive, more prone to burnout, and more likely to "quiet quit" — doing the bare minimum instead of bringing their A-game. And for small businesses, where every team member plays a crucial role, that can be devastating.

So, what’s the fix? Investing in and taking care of your employees. It’s not just about making people happy — it’s about creating a workplace where people want to be. And the ROI? Let’s break it down.

5 Ways Investing in Your Employees Pays Off

1. LOWER TURNOVER = COST SAVINGS. Hiring is expensive. Replacing an employee can cost anywhere from 50% to 200% of their annual salary. Yikes.

The costs alone should be wake up call to find out what your employees want and what's making them leave. A Gallup study of women in the workplace shows that those who maintain a healthy balance between work and personal commitments are more than twice as likely to be engaged at work, and less likely to be actively looking for a new job.

A study by Deloitte found that many women don't feel supported by their employers in balancing work with personal commitments. Almost all of the women surveyed believe asking for or using flexible work options could impact their chances for promotion, and 93% believe their workload would not be adjusted if they requested such flexibility.

❣️By keeping employees happy — through fair pay, competitive benefits, work-life balance, and a great work culture — you can reduce turnover and avoid the constant cycle of hiring and training new people. That’s money right back in your pocket.

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2. MORE PRODUCTIVITY = MORE PROFITS. Studies show that disengaged employees were 18% less productive than their more engaged peers. Engaged employees aren’t just happier — they get more done.   ❣️Businesses with highly engaged teams see a 23% boost in profitability. And when people feel valued — whether through professional development opportunities, flexible work options, or mental health support — they’re more likely to go the extra mile.

3. HAPPY EMPLOYEES = HAPPY CUSTOMERS. Ever notice that the best brands to shop are also the best places to work? Think Trader Joe’s, Patagonia, Chick-fil-A, and Costco. When employees love their jobs, they treat customers better. That leads to better reviews, stronger loyalty, and more repeat business.

❣️According to Gallup’s 2024 analysis, investing in employees directly translates to a stronger bottom line, leading to a 9% increase in profitability and an 11% improvement in work quality.  And when employers connect jobs to their employer's mission, it can lead to a 32% reduction in turnover and a 15% improvement in productivity. That's good news.

4. LOWER HEALTHCARE & ABSENTEESIM COSTS. A recent Fast Company study found that 80% of workers feel stressed out on the job. Additionally, nearly one-third of employees in the U.S. say that job-related stress has adversely affected their mental health, resulting in lack of sleep, low morale, anxiety attacks, and missed workdays. Even more concerning, over a quarter of workers say their benefits don't meet their needs. 

The impact of burnout is real -- and costly. By some estimates, nearly one in two workers regularly experience it. Stressed-out employees take more sick days, leading to lost productivity and higher healthcare costs. According to Gallup, burned-out and disengaged employees have 37% higher absenteeism, 18% lower productivity and 15% lower profitability. Translated into dollars means it's costing you about 34% or more of a disengaged employee's annual salary. 

❣️By offering options like wellness programs, mental health resources, and flexible work arrangements, for example, burnout can be prevented — keeping your team healthy, happy, and your business running smoothly.

5. A HIRING EDGE IN A COMPETITIVE MARKET. Today's job seekers want more than a paycheck — they want an employer who values them.❣️Businesses that offer great benefits, career development opportunities, and a positive work culture have an edge in attracting the best candidates. 

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Maximize Employee Well-Being (Without Breaking the Bank)

Taking care of your employees doesn’t require spending a fortune. Here are some simple, high-impact ways to boost engagement and see real ROI:

🔶Offer Fair Pay & Competitive Benefits. Competitive salaries, health insurance, and paid time off matter. If budgets are tight, consider perks like flexible schedules or wellness stipends.

🔶Support Work-Life Balance. Flexible hours, remote work options, and mental health days show employees you care about their well-being.

🔶Invest in Career Growth. Employees want to grow. Offer training, mentorship programs, or tuition assistance to keep them engaged.

🔶Foster a Positive Culture. A workplace where people feel appreciated, included, and heard is a workplace people want to stay in. Regular recognition, open communication, and team-building activities go a long way.

🔶Listen & Adapt. Checking-in with employees and addressing their concerns ensures they feel heard and valued. It also helps build trust and engagement.

Bottom Line: Taking Care of Your Employees is Just Good Business

If you want your business to thrive, start by taking care of the people who make it run. The ROI of investing in your employees' well-being isn’t just about dollars — it’s about retention, productivity, and customer satisfaction. So, whether you run a small business or an HR team leader, remember: Happy employees = a stronger, more profitable business. And that’s an investment worth making.

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for 25 years. Propel partners with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. For more information, visit propelhr.com