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Boosting Your Bottom Line: How Employee Engagement Transforms Small Businesses

Updated: Mar 6

For small businesses, each employee plays a crucial role. Effective performance management is key, even with a small team. This blog explores the importance of managing performance, highlighting the costs of recruitment and training, and the impact of disengaged employees on small businesses. It offers strategies to keep employees engaged and motivated, backed by compelling data on the return on investment of such initiatives.

The High Cost of Recruitment and Training

Small businesses face significant financial and resource expenditures in recruiting, hiring, and training new employees. The time and effort invested in bringing a new member up to speed are considerable, especially when weighed against the risks of employee disengagement and turnover.

The Price of Disengaged Employees

Disengagement in the workplace can lead to reduced productivity, lower quality of work, and can negatively impact customer satisfaction. These issues not only affect the day-to-day operations but also the business’s bottom line, leading potentially to a cycle of hiring and training new employees.

The ROI of Employee Engagement

A Gallup study found that highly engaged business units achieve 22% higher profitability and 21% greater productivity compared to less engaged units. These figures underscore the tangible benefits that engaged employees bring to a business's financial performance and overall success​​.

Strategies for Employee Engagement

  • Establish clear, achievable goals and maintain open communication.

  • Regularly acknowledge and reward hard work and achievements.

  • Offer opportunities for professional development.

  • Promote a healthy work-life balance.

  • Provide constructive feedback and support.


Performance management is crucial in small businesses. Investing in employee engagement not only enhances workplace morale but also significantly contributes to business profitability and success.

Amy Wagner Consulting can assist in developing effective performance management strategies, ensuring your small business makes the most of its most valuable asset – its PEOPLE!

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