Why professional services should focus on employee engagement to improve profit

Focusing on employee engagement is a great, low risk way to improve your firm's profitability, while reducing the cost of losing your highest value employees.

Cristian Tountzis
Why professional services should focus on employee engagement to improve profit

It's no secret that your most engaged employees will be your highest performers. Employees who are highly engaged drive more business growth, more sales, and can result in 21% more profitability for a business. For professional service firms looking to increase their revenue without expensive coaching and advisory, improving the engagement and confidence of your people is a sustainable way to make a difference to your bottom line.

But this isn't a one-dimensional solution. While engaged employees can deliver significant business growth with the right leadership, they're also 87% less likely to leave your organisation, saving you on expensive churn costs and onboarding time. It can take anywhere from 3 - 12 months to replace a high-performer, so that's 3 - 12 months where you're less profitable while you train new employees.

Correlation between performance and engagement

We analysed 5 million data points across our platform in the professional services industry and found a strong correlation between an individual's engagement and their productive hours. Here is a snapshot of engagement vs performance for a single firm.

Engagement vs performance plot

The highest engaged employees are by far the most productive in the graph above. The lowest engaged employees are generally less productive, and firms should see this as an opportunity to grow the current talent that they have to hit their revenue targets.

There are three things firm leaders should ask themselves and look to action immediately if they have these insights.

  1. What can I do to improve the engagement of my lowest employees, so they can become more profitable?

  2. How do I keep my most engaged employees engaged, so they stay profitable?

  3. What can I do to keep highly-profitable employees that have low-medium engagement, and will likely leave?

The knock-on effects of high-engagement

High-engagement doesn't just mean your employees will be happier. It means your business now has the potential to become more profitable. Here are 5 problems that engagement efforts look to minimise:

  1. Purpose misalignment

  2. Role misfit

  3. Disconnection to company and people

  4. Stress

  5. Distractions

Engagement, time and quality charge rate potential

These problems have knock-on effects on people's capacity and work quality. The less engaged and productive employees are, the more non-chargeable work and write-offs occur. The more engaged, confident and aligned employees are, the more likely they will be to produce high-quality work, reducing inefficiencies and client tensions.

Case Study: Power Tynan

Read the full case study here: type: entry-hyperlink id: 1bdOtYA00XJ5r0vyA3TTFi

If you're in the professional services/accounting industry, you have most likely heard of Power Tynan. They are firm believers in people-first culture, and having high-engagement is key to their firm's success. From Power Tynan's CEO, Amanda Kenafake:

By improving the engagement and confidence of their people, they saw an 18% increase in productive hours across the firm in just 90 days. We highly recommend you type: entry-hyperlink id: 1bdOtYA00XJ5r0vyA3TTFi to gain more insight into how they were able to achieve this in a short time period.

If you don't know where to start with your firm's improving engagement, we can help you. Book in a demo of Everperform and have a chat with us. It's quick and easy, and could be your first step towards more profitable and more confident employees with less effort.

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