The business case for employee engagement
– Why is employee engagement important to businesses
It seems that many executives and HR professionals still struggle defining the business case for employee engagement. But there is no need for an traditional business case for employee engagement – the impact is to obviously.
But why is employee engagement important to businesses? Improving employee engagement is not simply about improving productivity – although organizations with a high level of engagement do report 22% higher productivity, according to a meta-analysis of 1.4 million employees conducted by the Gallup Organization. In addition, strong employee engagement promotes a variety of outcomes that are good for employees and customers:
Business or work units that score in the top half of their organization in employee engagement have nearly double the odds of success (based on a composite of financial, customer, retention, safety, quality, shrinkage, and absenteeism metrics) when compared with those in the bottom half.
The business case for cultivating employee engagement
Employee engagement affects nine performance outcomes. Compared with bottom-quartile units, top-quartile units have:
- 37% lower absenteeism
- 25% lower turnover (in high-turnover organizations)
- 65% lower turnover (in low-turnover organizations)
- 28% less shrinkage
- 48% fewer safety incidents
- 41% fewer patient safety incidents
- 41% fewer quality incidents (defects)
- 10% higher customer metrics
- 21% higher productivity
- 22% higher profitability
Convinced now
Not yet? Than let’s have some more facts from Top 10+ reasons why employee engagement is important:
The business case for employee engagement
Engaged employees are essential – But is management the sole responsible for employee engagement? Does employee engagement falls on the shoulders of every manager and employee?
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What is the business case for employee engagement — https://www.torbenrick.eu/t/r/fcl
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It would be interesting to take the Gallup poll and put it against health care. What happens to consumers of health care when they are engaged in their health system/providers/payers universe? I bet its very dramatic. But until recently we did not think about engagement which is always fostered via communication, access, transparency and one’s sense of value in the system to be viable in the present health care system. In the pay for service model providers did not really need consumers to be engaged (learning, contributing, changing)– they needed to have good health insurance, be sick and show up often. As we all know — that’s not working.
Change management is needed more then ever in the health care world and your blog made me realize that a similar engagement survey would be very useful to track not just providers but also communities’ health engagement level. Thanks. I need to work on that.
Interesting article and I so agree that the first thing to do is to be clear on the purpose of the organisation and give clarity to staff about how they fit with it. It seems so obvious but I have still seen organisations that fail to do this. It should be easy to explain and get buy in to the idea that if staff are engaged they are happy but I think the consequence of this is the key point, that they then make sure your customers are happy. Isn’t that what you should be aiming for?
Thanks a lot for the great article, it delives some great data! It caught my interest because I am currently writing my master’s thesis about employee Engagement and I am looking for some quality input!
I am conducting a quantitative research about effects of humble leadership on employee voice behavior. On my website
” maxschauss.wix.com/masterthesis ”
you can find more information about it and also the direct link to the survey. It significantly advances research in this field, takes just around 10 minutes of your time and is 100% anonymous.
Data collection is done on a large scale through a snowball system. Since I am looking for support, I would kindly like to ask, if anyone would be willing to participate in this short survey or alternatively, if you would be willing to distribute to people/organization who would. The survey can also be distributed among all employees of an organization!
Please feel free to contact me for further questions! I will keep you posted about the results of the research.
Thank you a lot, your help is appreciated!
Max Schauss