Transcript Employee Engagement - the evidence

Why does employee engagement
matter?
Why is it Important?
70% 6% 20% 30%
Percentage of
employees
who do not
trust their
managers
The UK has 6%
lower average
engagement
levels than
other large
economies
(Kennexa, 2011)
Percentage
below G7
productivity
levels
(International
comparison of
productivity gap)
Percentage of
employees
actively
engaged
Imagine if 30% of lights didn’t work…
…OR 30%30%
OF of
COMPUTERS!
Imagine
lights didn’t work…
Organisational Case Study Submissions
Research Houses and other Organisations
Linkages to Employee Engagement
Organisations with higher engagement level
Outperformed the total stock market index
Posted total shareholder returns 22% higher
than average
Twice the annual net income
4.2 times more likely to deliver above average profit
15% of a store’s year on year growth can be explained by
the level of engagement
12% higher growth in sales
Companies with engagement scores in the top
quartile averaged 12% higher customer
advocacy
84% of ‘Worlds Most Admired’ Companies
stated their efforts to engage employees had
strengthened customer relationships
Higher engagement levels have lower patient mortality rates
7 percentage points difference in customer service scores
between top 10% and bottom 10%
Contracts delivered by engaged employees showed higher
customer loyalty
Engagement scores in the top quartile
averaged 18% higher productivity
71% of companies with above average
employee engagement performed above their
sector average
Engaged staff able to talk to additional 800 customers
per year
Higher sales and lower absence
59% of engaged employees say work brings
out their most creative ideas – only 3% of
disengaged employees agree
Engaged employees are more likely to search
out new methods, techniques and transform
innovative ideas
£26m of improvement opportunities
Engaged employees in the UK take an average
of 2.7 sick days per year, while disengaged
staff take 6.2
Sickness absence costs the UK economy
£17 billion per year
Absence levels reduced by 26%
Higher engagement levels have lower absence levels
High levels of engagement are positively
associated with wellbeing
Strong correlation between engagement and wellbeing
Bottom 10% has 2x voluntary turnover
Bottom 10% ranked by employee engagement had almost
twice the voluntary turnover
Engaged Employees:
Perform better, work harder, longer,
smarter
Work more vigorously, offer innovative
suggestions
Employee Engagement:
The Evidence
CEOs call on UK to deliver
GDP growth
by better engaging
employees at work.
A high-level task force of some of the UK’s most
recognisable organisations is calling for every
leader and manager across the economy to
play their part in tackling the UK’s employee
engagement deficit.
Analysis of the evidence shows that:
Only around a third of UK employees say they are
actively engaged at work.
20 million workers are not delivering their full
capability or realising their potential at work.
of people said they have more to
offer in
skills and talent than they
are currently being
asked to
demonstrate at work.
UK productivity was 20% lower than the rest of the
G7 in 2011.0
Employee Engagement:
Statistics and Case Studies
PROFIT
Companies with
engagement
scores in the top
25% had twice the
annual net profit.
CUSTOMER
SATISFACTION
REVENUE
GROWTH
Organisations in the top
quartile of engagement scores
demonstrated revenue growth
2.5 times greater than those in
the bottom quartile.
Companies with top
quartile engagement
scores average
12% higher customer
advocacy.
Employee Engagement:
Statistics and Case Studies
PRODUCTIVITY
Organisations in the top
quartile of employee
engagement scores had
18% higher productivity.
INNOVATION
59% of engaged
employees said that their
job brings out their most
creative ideas.
EMPLOYEE TURNOVER
Companies with high levels of
engagement show turnover rate
40% lower than companies with low
levels of engagement.
Employee Engagement:
Statistics and Case Studies
EFFICIENCY
An insurance company found that teams with
higher engagement had 35% less down time
between calls – equivalent to one ‘free of charge’
employee to every eight employees.
HEALTH & SAFETY
Organisations with engagement in the bottom quartile
average 62% more accidents than those in the top.
Engage for Success
www.engageforsuccess.org
@engage4success