Friday, November 6, 2009

The Engagement Factor Blog

Employee Engagement: The Hard Facts by Brad Federman

In the autumn of 2008, David MacLeod and Nita Clark were asked by UK’s Secretary of State for Business to conduct an in-depth review of employee engagement and determine if there was value in the concept. Specifically can employee engagement help organizations in down or globally competitive economies?

Their answer was an “unequivocal yes.”

Some highlights from the report:
Those organizations with the bottom quartile engagement scores had up to:

51% more turnover
51% more inventory shrinkage
62% more accidents
32.7% decline in operating income over 12 months
Those organizations in the top quartile saw:
12% higher customer advocacy
18% higher productivity
12% higher profitability
Earnings Per Share (EPS) 2.6 times greater than the bottom quartile
19.2% improvement in operating income over 12 months

One bank found branches that had an increase in engagement levels saw a 16% increase in profit margin over those with lower engagement level scores.

Engaged employees take 2.69 sick days per year versus 6.19 days taken by those disengaged.
70% of engaged employees have a good understanding of how to meet customer needs, while only 17% of the disengaged do.

Other results include the impact employee engagement has on innovation and change. The verdict is in…ignore employee engagement at your own peril. Employee engagement is more than a touchy feely subject. Employee engagement is more than doing the right thing. Employee engagement is a real competitive advantage. Build your case now!

To download the report go to:

For more information regarding Employee Engagement the book go to:

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