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
Not yet? Than let’s have some more facts from Top 10+ reasons why employee engagement is important:
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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About The Author
Experienced senior executive, both at a strategic and operational level, with strong track record in developing, driving and managing business improvement, development and change management. International experience from management positions in Denmark, Germany, Switzerland and United Kingdom