Employee engagement remains a challenge for many companies. Have you ever asked yourself, just how many of the employees in my organization are really engaged? If you believe it is about half, you may actually be overestimating the number.
But why is employee engagement important to businesses? It’s simple: to make higher profits. Businesses with more engaged employees perform better. Need convincing? Need a business case for employee engagement?
- Businesses with more engaged employees have 51% higher productivity.
- Businesses with higher engagement have 9% higher shareholder returns.
- Companies with the most effective employee communication have 47% higher shareholder returns over the last five years.
- Engaged employees outperform disengaged employees by 20-28%.
- Organizations with engaged employees showed a 19% increase in operating income over a 12-month period, compared to a 33% decrease in companies with disengaged employees.
- Employer understanding of the business strategy and how their work contributes to company performance is one of the top drivers of engagement.
- Almost two-thirds of all employees are 33% as productive as they could be because they don’t understand what they are being asked to do.
- 80% of employees with a high degree of trust in management are committed to the organization, compared with 25% of employees with a low degree of trust.
- In organizations with highly engaged employees, the share prices rose by an average of 16 percent compared with an industry average of 6 percent.
- Highly engaged employees have less absence days – in average 3,5 days – compared to not engaged employees.
- A 5% increase in total employee engagement correlates to a 0.7% increase in operating margin.
- Organizations with highly engaged employees achieve twice the annual net income of organizations whose employees lag behind on engagement.
- In companies where 60 to 70 percent of employees were engaged, average total shareholder’s return (TSR) stood at 24.2 percent; in companies with only 49 to 60 percent of their employees engaged, TSR fell to 9.1 percent; companies with engagement below 25 percent suffered negative TSR