ENGAGEMENT ROI
The research is clear. Employee engagement plays a direct role in individual performance, and those companies that make a point of engaging their employees, regularly outperform those with a less engaged workforce.
The Numbers Speak for Themselves
- Companies with lower engagement scores earn an operating income that’s almost 33% lower than companies with more engaged employees
- Companies with a highly-engaged workforce have experienced as much as 17% growth in their operating incomes over a 12-month period
Profitability & Attrition
The Corporate Leadership Council studied the engagement level of 50,000 employees around the world to determine its impact on individual performance, and on employee retention. Here’s what they found:
- Engaged companies grow profits as much as 3X faster than their competitors
- Highly engaged employees are 87% less likely to leave an organization
Customer Loyalty, Productivity, and Turnover
Gallup’s latest employee engagement meta-analysis report shows that, compared with the lowest performers, businesses in the top quartile for engagement:
- are 17% more productive,
- experience 70% fewer safety incidents,
- experience 41% less absenteeism,
- have 10% better customer ratings, and
- are 21% more profitable
THE HIGH COST OF DISENGAGEMENT
A research study by McLean & Company found some very compelling correlations between employee engagement and a company’s bottom line:
- A disengaged employee costs an organization approximately $3,400 for every $10,000 in annual salary
- Disengaged employees cost the American economy as a whole up to $350 billion per year in lost productivity
The take-away? Companies that want to boost productivity and profitability, increase customer loyalty, improve operating income, and minimize attrition, must find ways to engage their employees.