ROI

Strengthening Employee Engagement
for Better Organizational Performance

“Engaged employees have a shared belief in the company’s purpose, its mission statement, and its values, and that shared belief drives behavior at every level of the firm.” – Conference Board. (2012). Employee engagement: What works now?


Disengagement is a growing trend across organizations and sectors around the world.

A survey of 5,000 US households indicates that less than 50% of americans are satisfied with their jobs. Previous surveys indicate a downward trend from 60% in 1987 to around 50% in 2000 onwards. Conference Board. (2013). Job satisfaction: 2013 edition.

A global study reported that 26% of employees planned to leave their current job within two years. A clear majority also think that their organization doesn’t do a good job of hiring and retaining highly qualified employees. – Towers Watson (2014). The 2014 Global Workforce Study.


However, providing the right kind of development opportunities can reverse this trend within an organization and deepen engagement.

“Fostering an environment that treats all employees equally, as well as one that encourages communication between all levels of workers, can be an effective means of earning trust from employees and increasing their satisfaction with their jobs.” – SHRM (2014) Employee Job Satisfaction and Engagement.

Another study reported that professionals are the least engaged and rank Learning and Development and Career Opportunities first for engagement. – Aon Hewitt (2014). Trends in Global Employee Engagement.

Employee engagement and organizational performance are highly correlated

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Aon Hewitt (2014) – studied 284 global companies and reported that companies with high engagement outperformed average companies (with respect to Total Shareholder Return): best employer companies achieved 6% more TSR than average companies; top quartile engagement companies achieve 6% more TSR than average; while bottom quartile engagement companies performed 8% worse than average.

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Gallup (2010) – studied 54 public companies from around the world according to measured levels of employee engagement and earnings per share (EPS). The most engaged companies (top decile) outperformed their industries by over 4x EPS. High engagement companies (top quartile) outperformed their industries by approximately 2x EPS.

Engagement Begins and ends with Relationships

“It is, in the end, all about human interaction in the workplace. It might be oversimplifying it; people join companies, but they leave their bosses… You really have to work with management, with leadership, and especially middle managers, so everyone understands what is needed to sustain a positive work climate.” – Dr. Harald F. Stock, CEO, Grünenthal GmbH. The conference board CEO challenge® 2013.

Are you using your training and development budgets to build capacity for strong positive collaborative relationships?