Engagement Levels in the Workplace: The Bottom Line
June 9, 2010 at 11:14 PM
Employee engagement levels are gaining increasing importance as a source of competitive advantage. Increasing Employee Engagement is a way to directly and indirectly achieve greater bottom line and service level success for an organisation.
PeopleStreme’s research shows a strong correlation between high levels of employee engagement and staff willing to go the extra mile. This is linked to understanding the direction of the organisation and their role in executing the overall strategy.
A recent meta-analysis survey conducted by Gallup (http://www.gallup.com/consulting/126806/q12-meta-analysis.aspx) has reported the following findings comparing workforces with high employee engagement levels to those with levels of low employee engagement :
- 18% more productive: Greater output and innovation was recognised. In the US, $300 billion in lost productivity alone was found due to disengagement.
- 16% more profitable: The survey reported greater bottom line success with 3.9 times the earnings per share growth rate compared to companies in the same industry with low engagement levels.
- More customer focused: Willing to go out of their way to ensure customer satisfaction.
- Safer workplace: 49% difference in safety incidents.
- Higher levels of staff retention: An engaged employee is a satisfied employee and in turn will result in lower levels of turnover and absenteeism. The Gallup survey found a 37% difference in absenteeism levels, and an average of 37% less turnover.
The evidence from the research validates PeopleStreme’s research that employee engagement will, both directly and indirectly, drive success for the organisation.
This suggests savings can be made including lower costs of attracting and retaining both employees and customers.
In Australia, safety incidents on average cost a company $112,550 (http://www.easyohs.com.au/_blog/Tips_and_Articles/post/Cost_of_Workplace_Accidents/) due to lost productivity, possible payment of penalties and other hidden costs. Therefore reducing such incidents will also be a cost benefit to the organization.
- Carina Salem