Employees play a vital role in the success or failure of a business, and knowing how to engage them is essential for the growth and survival of organizations. Several authorities have measured the return on investment when companies prioritize employee engagement and dedicate resources toward that aim. Their research demonstrates that having a highly engaged workforce not only maximizes profits and improves quality, but also can significantly reduce costs.
Susan Katz, writing on The US Chamber of Commerce Foundation website, reported on findings of the Gallup organization, the renowned polling entity. According to her, what Gallup found from a survey of 1.4 million employees is that the top 25% most engaged teams experienced a double-digit advantage in the following areas:
According to a report by the ISS Group, a large international facilities services company based in Denmark, it’s been proven that five of the main motivations for engagement are: significant work for the employees, a practical management style, a positive work environment, career growth opportunities and trust in the leadership.
In 2010, ISS undertook a program with the objective to increase employee engagement. The subsequent annual surveys found that the engagement increased from 76%-81%, along with an increase in productivity. And healthcare costs were reduced by 24%. Most significantly, customer satisfaction levels jumped from a score of 20% at the beginning, to 90% in 2013.
Although the data mentioned above does not comment on costs, it’s presumed that they paled in comparison to the amazing increases in key performance indicators, hinting at a very positive ROI.
We know that to have a highly engaged workforce, it is imperative that companies invest in organizational engagement programs. In our next article, we’re going to explore specific ways to improve the engagement of your company.
To learn more about how you can measure and improve the level of engagement in your organization, contact us.