There is a lot of talk in HR circles about how employee engagement increases retention. It’s an application of what businesses already know about their customers. If you can engage a customer, your are much more likely to retain that customer. In a way, employees are also your customers. And happy employees are directly correlated to happy customers. But it goes even further. A meta-analysis confirmed that employee engagement is also connected to these nine performance outcomes:
-turnover (for high turnover and low turnover organizations)
-patient safety incidents
In fact, employee engagement predicts company performance even in a tough economy. Employees scoring in the top half on engagement nearly doubled their odds of success compared with those on the bottom half. Those at the 99th percentile had four times the success rate of those at the first percentile. Work units in the top quartile in employee engagement outperformed bottom quartile units by 10% on customer ratings, 22% in profitability, and 21% in productivity. Work units in the top quartile saw significantly lower turnover (25% in high-turnover organizations, 65% in low-turnover organizations), shrinkage (28%), absenteeism (37%), fewer safety incidents (48%), patient safety incidents (41%), and quality defects (41%).
These numbers prove it is definitely worth your company’s time and money to figure out how to achieve employee engagement. Not sure where to start? Ask your employees!
Let us know how we can help.
Source: Gallup Susan Sorenson, June 20, 2013 retrieved on 9-28-16 from: http://www.gallup.com/businessjournal/163130/employee-engagement-drives-growth.aspx
Rylan Klaseen & Associates
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