Employee engagement the evidence
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This document summarizes research on the relationship between employee engagement and organizational performance. It finds that companies with higher employee engagement levels significantly outperform those with lower engagement across key metrics. Specifically, highly engaged organizations have twice the annual profit, 12% higher revenue growth, 18% higher productivity, 40% lower turnover, and better customer satisfaction, innovation, health and safety outcomes. The evidence demonstrates that improving employee engagement can substantially boost a company's financial and operational results.
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Employee engagement the evidence
- 1. NAILING THE EVIDENCE TANITH DODGE HR Director Marks & Spencer plc
- 2. Our Aim
- 3. Why is it Important? 70% 6% 20% 30% Percentage of The UK has 6% Percentage Percentage of employees lower average below G7 employees who do not engagement productivity actively trust their levels than levels engaged managers other large (International comparison of economies productivity gap) (Kennexa, 2011)
- 4. Imagine if 30% of lights didn’t work…
- 5. …OR 30% OF COMPUTERS! Imagine 30% of lights didn’t work…
- 6. Organisational Case Study Submissions
- 7. Research Houses and other Organisations
- 8. Linkages to Employee Engagement
- 9. Organisations with higher engagement level Outperformed the total stock market index Posted total shareholder returns 22% higher than average Twice the annual net income 4.2 times more likely to deliver above average profit 15% of a store’s year on year growth can be explained by the level of engagement 12% higher growth in sales
- 10. Companies with engagement scores in the top quartile averaged 12% higher customer advocacy 84% of ‘Worlds Most Admired’ Companies stated their efforts to engage employees had strengthened customer relationships Higher engagement levels have lower patient mortality rates 7 percentage points difference in customer service scores between top 10% and bottom 10% Contracts delivered by engaged employees showed higher customer loyalty
- 11. Engagement scores in the top quartile averaged 18% higher productivity 71% of companies with above average employee engagement performed above their sector average Engaged staff able to talk to additional 800 customers per year Higher sales and lower absence
- 12. 59% of engaged employees say work brings out their most creative ideas – only 3% of disengaged employees agree Engaged employees are more likely to search out new methods, techniques and transform innovative ideas £26m of improvement opportunities
- 13. Engaged employees in the UK take an average of 2.7 sick days per year, while disengaged staff take 6.2 Sickness absence costs the UK economy £17 billion per year Absence levels reduced by 26% Higher engagement levels have lower absence levels
- 14. High levels of engagement are positively associated with wellbeing Strong correlation between engagement and wellbeing
- 15. Bottom 10% has 2x voluntary turnover Bottom 10% ranked by employee engagement had almost twice the voluntary turnover
- 16. Engaged Employees: Perform better, work harder, longer, smarter Work more vigorously, offer innovative suggestions
- 17. Employee Engagement: The Evidence CEOs call on UK to deliver A high-level task force of some of the UK’s most recognisable organisations is calling for every GDP growth leader and manager across the economy to by better engaging play their part in tackling the UK’s employee employees at work. engagement deficit. Analysis of the evidence shows that: Only around a third of UK employees say they are actively engaged at work. 20 million workers are not delivering their full capability or realising their potential at work. of people said they have more to offer in skills and talent than they are currently being asked to demonstrate at work. UK productivity was 20% lower than the rest of the G7 in 2011.0
- 18. Employee Engagement: Statistics and Case Studies PROFIT CUSTOMER Companies with SATISFACTION engagement scores in the top Companies with top 25% had twice the quartile engagement annual net profit. scores average REVENUE 12% higher customer GROWTH advocacy. Organisations in the top quartile of engagement scores demonstrated revenue growth 2.5 times greater than those in the bottom quartile.
- 19. Employee Engagement: Statistics and Case Studies PRODUCTIVITY Organisations in the top quartile of employee engagement scores had 18% higher productivity. INNOVATION EMPLOYEE TURNOVER 59% of engaged Companies with high levels of employees said that their engagement show turnover rate job brings out their most 40% lower than companies with low creative ideas. levels of engagement.
- 20. Employee Engagement: Statistics and Case Studies EFFICIENCY An insurance company found that teams with higher engagement had 35% less down time between calls – equivalent to one ‘free of charge’ employee to every eight employees. HEALTH & SAFETY Organisations with engagement in the bottom quartile average 62% more accidents than those in the top.