Why Employee Engagement Matters

Compelling Answers from Recent Research

Profit: highly engaged employees boost bottom line by as much as 60%.

Towers Perrin-2007 studied 360,000 employees in 41 companies over 3 years. Engaged groups added 2.06 points of net profit. Disengaged groups reduced net profit by 1.38 points. On a 5% total net profit, this is a net increase of over 60% (engaged vs disengaged). On a 10% net profit, the net increase is over 30%

Productivity: highly engaged staff were 47% more productive than staff with low engagement.

Watson Wyatt Worldwide Mar 29,2007

Annual revenue per employee: high engagement- $484 k per ee, low engagement-  $328 k per ee.

Growth: annual compound growth over 5 yrs was 263 % higher for companies with highest staff engagement (12.9 %) vs lowest (4.9%).

Hewitt Associates- Canada’s Best Employers 2007

Best of the best – engagement levels at canada’s 50 best companies were 40% higher than “good” companies studied.

Hewitt Associates- Canada’s Best Employers 2007

Note: 100% of Canada’s top 50 companies now measure employee engagement.

Why Employee Engagement Matters
 

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Don Rheem’s presentation on Employee Engagement gets underneath the real “whys” on the behavior of discretionary effort. I found his examples to be relative and understandable. I see how our leaders are making better connections with the hearts of our people, so everyone better understands the goals of the enterprise.

--Peter Rittenhouse, Director of Supply Chain
Nestle Waters
 
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