12 Ways Employee Engagement Makes Companies Competitive

January 17, 2014

Investing in a workplace culture that builds engagement also drives success. We’ve put together a dozen of our favorite findings from recent studies that show enthusiasm really does have its own ROI.

Employee Engagement ROI
High employee engagement makes companies more competitive and profitable.

Consider:

  1. Companies with engaged employees outperform those without by up to 202 percent. (Gallup)
  2. Highly engaged organizations have the potential to reduce staff turnover by 87 percent and improve performance by 20 percent. (Corporate Leadership Council)
  3. Companies with world-class engagement have 3.9 times the earnings per share (EPS) growth rate compared with organizations with lower engagement in the same industry. (Gallup)
  4. Investing in workplace practices that raise engagement by 10 percent would increase profits by $2,400 per employee. (Accenture)
  5. Forty percent of employees with low engagement scores said they were likely to leave their employers over the next two years, compared to 24 percent of traditionally engaged employees, and just 18 percent of employees with the highest “sustainable engagement” scores. (Towers Watson)
  6. Engaged employees are almost three times more likely to recommend an improvement. (Temkin Group)
  7. Engaged employees are more than six times as likely to recommend that a friend or relative apply for a job with their company. (Temkin Group)
  8. Even if they won a $10 million lottery jackpot, 63 percent of engaged workers would stay at their jobs. (Gallup)
  9. Among companies with significantly above average financial performance, 75 percent of employees are moderately or highly engaged. (Temkin Group)
  10. Engaged employees are more than twice as likely to stay late if something needs to be done, help a colleague even if they’re not asked, and do something good for the company even if it’s not expected of them. (Temkin Group)
  11. Among fully engaged employees, 1 of 4 fully would leave for a 5 percent salary increase, as would half of employees categorized as “partially engaged.” As for workers considered disengaged, nearly 7 of 10 would take the same deal and quit. (Dale Carnegie/MSW Research)
  12. Organizations that embrace employee engagement principles have outperformed their competitors by 26 percent in gross margin and 85 percent in sales growth. (Gallup)

Building a workplace culture with engaged employees pays off. Unfortunately, only 30 percent of employees are considered “fully engaged” in their jobs. At the other end of the spectrum, 1 in 4 are “actively disengaged.” They are unhappy, unproductive and aren’t shy about sharing their feelings.

The “somewhat engaged” group is the largest. Imagine the ROI in turning even 1 of 5 in this middle pack into more fully engaged employees. And finding ways to motivate naysayers into champions.

Callibrain can help.

Free for up to five users. Volume and term discounts available for large organizations. Learn more.

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