“Employee engagement is not optional; it’s a business necessity. Companies that invest in their people today will be the ones leading tomorrow.”
The drinks industry faces rising costs, evolving consumer preferences and tightening regulations. Amid these challenges, one key factor drives long-term success: investing in employee engagement.
According to Gallup's 2024 State of the Global Workplace Report, the difference between top and bottom quartile teams in engagement is significant:
- 10% higher customer engagement
- 18% increased productivity
- 78% less absenteeism
- 21% lower turnover
- 63% fewer safety incidents
Neglecting employee engagement leads to lower productivity, higher turnover and weaker business performance.
The cost of disengagement
Disengaged employees cost companies 18% of their annual salary in lost productivity. With fierce competition and shrinking margins, this is a risk businesses can’t afford.
Furthermore, quiet quitting - where employees do the bare minimum has become a growing issue. If left unaddressed, it escalates into loud quitting, leading to high turnover and workplace disruption. Short-term cost-cutting at the expense of engagement only worsens these trends.
Why retaining talent matters
1. Competitive job market
With globalisation and remote work, attracting and retaining talent is tougher than ever.
2. Evolving workforce expectations
Employees seek growth opportunities, work-life balance and strong company culture, not just a paycheck.
3. Skill shortages and mismatches
The demand for new skills is outpacing available talent.
4. Employee engagement and retention
High performers leave when they feel undervalued. Clear career paths, meaningful development and recognition are crucial.
How investing in people drives results
1. Leadership & development matter
Companies that offer structured career frameworks and upskilling programs retain employees longer and boost performance.
2. The hidden cost of quiet quitting
Without strategic engagement, businesses risk stagnation and loss of competitive edge.
The solution: building an engaged workforce
To create a thriving workforce, companies must prioritise leadership development, upskilling opportunities, and fostering a culture that values growth and retention. When employees feel supported, they are more committed, productive, and motivated to drive business success.
A leading beverage distributor revamped its leadership training programs, reducing turnover by 30% in a year and increasing productivity by 15%. This case highlights how investing in people directly improves retention and performance.
Final thoughts
Industry leaders who embrace employee engagement see tangible benefits in long-term stability and performance. Addressing capability gaps and implementing strategic development initiatives help businesses foster a culture of continuous growth.
At Total Negotiation Group, we take a 70/20/10 approach to building capability and uniting teams. Our tailored programs help teams solve business challenges and prepare for key commercial engagements, strengthening skills in Category & Channel Strategy, RGM, Selling, Negotiating, and Account Planning.
If you’d like to learn how we support suppliers in building people engagement and winning the commercial conversation, please visit the Total Negotiation Group website or email apac.info@totalnegotiation.com for more information.
References: Gallup. (2024 Report). State of the Global Workplace. The Voice of the World’s Employees
Total Negotiation Group is a Silver Partner of the Drinks Association.