Wednesday, May 6, 2009

Why you should care about Employee Engagement

High employee engagement is one factor that shows that an employer is rated highly by its employees. Based on averages from recent “Best Employer” surveys (as reported in The Globe and Mail, December 20, 2005), here is the math on why you should care about increasing your employee engagement:

  • The full-time voluntary turnover rate is 8 percent for the best employers versus 11 percent for others.
  • The part-time voluntary turnover rate is 12 percent for the best employers versus 23 percent for others.
  • Among senior leadership at the best employers, 74 percent believe that their organization is investing enough to develop the next generation of leaders versus 65 percent at other participants.
  • Among the best employers’ senior leaders, 64 percent believe that their organizations have an excellent succession planning process for developing leaders versus 46 percent at other organizations.
  • The 50 best employers who are publicly traded have an average compound annual growth rate of revenue (averaged over their past five fiscal years) of 16.4 percent per annum versus 6.1 percent at other organizations.
  • When looking at average cash flow return (averaged over their past five fiscal years), the best employers come in at 13.7 percent per annum versus other publicly traded participants at 10.2 percent.

If that doesn't convince you, especially in this economy, that investing in an employee survey to measure engagement and take action on the results is a sure path to the success of your business, then maybe you should consider a different line of work.

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