Are Employee Engagement Levels Really That Important?

In 2006, Towers Perrin/ISR, one of the world’s premier employee research and consulting firms, conducted what it refers to as one of the most extensive Employee Engagement studies ever, culling from survey data spanning more than 664,000 employees at numerous company types across 50 countries worldwide.

To quote from the prestigious researcher’s own briefing, found at http://www.isrinsight.com:

“Previous ISR research found that companies with highly engaged employees have:

Lower staff turnover rates

Lower absenteeism

Higher customer satisfaction and loyalty

ISR’s latest research reveals the difference an engaged workforce can make to the financial performance of an organization.”

Specifically, ISR compared the financial performance of organisations with highly engaged workforces to their peers with a less-engaged workforce, over a one-year period. In ISR’s own words, the findings were “striking.”

The companies with high levels of Employee Engagement delivered:

19.2% increase in Operating Income (compared to companies with low levels of engagement experiencing a decline of 32.7%)

13.7% increase in Net Revenue (compared to companies with low levels of engagement experiencing a decline of 3.8%)
27.8% increase in Earnings-Per-Share (compared to companies with low levels of engagement experiencing a decline of 11.2%)

Do I have your attention yet?