Employee engagement has been directly linked to profit (see blog on "Why employee engagement is so important"). The Gallup (2009) research found that companies with engaged staff have up to 27% higher profits.
The recent Australian study by Aon Hewitt found that companies with an engagement score of 65 per cent or higher have, on average, profit growth four times that of other organisations. Now that's a great opportunity for growth.
What is employee engagement?
Employee engagement is sometimes confused with employee satisfaction. It is possible to have very satisfied employees, who are not productive.
Employee engagement can have various definitions, but includes alignment of employees to the organisations' goals. It is an emotional connection to their company where employees feel committed and will drive innovation in order to move the organisation in the right direction. Engaged employees use discretionary effort to go the extra mile.
Engaged staff are;
- more productive
- more passionate about striving for company goals
- more willing to recommend their employer to others and
- stay longer (in fact engaged employees are up to 87% less likely to leave according to the Corporate Leadership Council)
|So what is the problem?
Employee engagement is one of the biggest current business challenges because there is a worldwide employee engagement crisis with only 1/3 of the workforce reporting to be engaged.
The 2009 Gallup Engagement Index surveyed 42,000 randomly selected employees and discovered that only 33% are engaged, 49% are disengaged (employees who have lost passion and neglect to put energy into their work) and 18% were actively disengaged (that is disruptive and hindering the achievement of the organisations goal). Imagine the return on investment, if you could just engage 10% more of your employees.
- Does your organisation suffer from disengaged employees?
- Do you know the reason why you employees are disengaged and are you able to address these issues on your own?
- How much more effective and profitable could your organisation be if employees were more engaged?
- Do you have an effective employee engagement strategy?
Contact Driving Force Australia to learn how you can improve employee engagement and get your organisation humming.
Gallup Management Journal 2009, Gallup Consulting, "Employee Engagement: What's your engagement ratio?"
Corporate Leadership Council
AonHewitt (2011) Your Pathway to Improving Employee Engagement