Combat margin erosion in five steps - Part Five: Create a culture that fosters highly engaged and motivated employees

Find out how to create a culture that turns your employees into your most valuable (and profitable) asset.

In the logistics industry, personnel expense is usually the highest cost factor with personnel expense ratios anywhere between 30% and 50%.

With that in mind, it is alarming to see that approximately 86% of the workforce in the MENA region is either not engaged or actively disengaged (i.e.disruptive). 

Focusing on creating a culture that fosters highly engaged and motivated employees is therefore imperative. 

Introducing performance management tools will help you create a transparent environment in which employees are aware of both organizational goals as well as personal objectives. Not only do you want to reward performance, ideally you want to reward over-performance. 

According to Gallup, organizations with a high employee engagement score achieve the following, versus organizations with a low score:

• 17% higher productivity
• 20% higher sales
• 41% lower absenteeism
• 70% fewer employee safety accidents
• 40% less shrinkage (a polite word to describe theft)

At TopLogisticsManagement, we specialize in increasing our clients’ profitability, and these are just five areas we take into consideration when advising clients. To learn more about how we can help you prevent margin erosion and grow your business, contact us today.

Do you want highly motivated and engaged employees? We can help your team significantly increase their performance. Get in touch to find out more. 

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