What makes your employees committed to your company? How important would this commitment be? The productive employee will bring more cash and profits to the company. In fact, there had been disclosures that employee engagement programs are related to business profitability and customer satisfaction.
Employee engagement programs
First an employee engagement program is a kind of effective business management concept. This is geared to cause in the employee a sense of commitment to the company through undying enthusiasm to work for the profitability of the firm. Engaged employees have positive attitudes toward the business and would do everything to help management achieve company objectives.
Employee incentive programs
For the part of management, it gives out employee incentive programs that are geared to reward the engaged employees. The incentive program is also a kind of business management concept. This aims to induce the employees to be fully engaged to the company. These two business concepts employee engagement programs and employee incentive programs are two of the business management concepts that can help in business success.
How do these two programs for employees contribute to the profitability of the business? The reward to an employee can make him work better. The productivity is increased such that every dollar spent on the salary is returned with more output. However, a company cannot expect every employee to share the same sentiments for the company. These employees who seem to be falling out should be presented with challenges and more incentives. It has been asserted that an employee has the tendency to improve his performance when the company motivates and makes the employee develop engagement. Pay may be an element of the motivating factor but recognition and commendation can at times be good incentives.
Customer loyalty programs
There is a third business management concept that is related to the programs and incentives to the employees. This is known as customer loyalty programs. This is being practiced by a great number of firms. Companies give discount points and other incentives that will make the buyer come back to avail points and ultimately convert the points into discounts.
How do customer loyalty programs contribute to business profitability?
The program will entice customers to concentrate on buying your products. They will keep buying your merchandise in order to accumulate points. In this present economic condition, every amount that is saved is very important.
Many business analysts had researched on three important management concepts that contributed to profitability. These concepts are in the form of incentives to the company employees and the product buyers. The employees help bring down the expense and the buyers help increase sales. The net effect in the income statement of the company PROFIT!