If you’re a business owner or manager who’s new to the concept of employee engagement, you may be trying to determine if employee engagement is truly effective, or if it’s simply a feel-good initiative, on par with team building events and trust fall exercises.
We scoured the latest workplace research studies to find out if investing time and money into employee engagement initiatives is a valuable investment, what the ROI is (if any) on employee engagement, and what the key drivers of employee engagement are.
Check out the infographic below, and learn more about our findings after the jump.
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Is investing time and money into employee engagement initiatives worth it?
The American workplace is plagued with chronically low levels of engagement. Research shows that 71% of employees are disengaged at work. In turn, this is costing the US economy between $450 – $550 billion in lost productivity each year. That’s not all – an additional $11 billion is lost annually due to employee turnover. In other words, companies can’t afford to not invest in employee engagement.
What is the ROI on employee engagement?
Research shows that a 5% improvement in employee engagement predicts a 3% increase in sales. In fact, companies with engaged employees out-perform companies with disengaged employees by up to 202%. These companies experience 37% less absenteeism, 28% higher gross margins, a 19% improvement in operating income, 3.5x greater earnings per share, and 18% higher productivity than the competition.
What are the key drivers of employee engagement?
Relationships – According to research, an individual’s relationship with their manager and colleagues plays a huge role in how engaged they are at work. In fact, 80% of employees who were dissatisfied with their direct manager were disengaged at work.
Leadership – Leadership matters! 70% of employees who lack confidence in the abilities of senior leadership are not fully engaged at work.
Pride – Does your organization participate in philanthropic efforts? Research shows that 54% of employees who were proud of their company’s contributions to society are engaged at work. However, simply throwing money at a cause isn’t the most effective method. Studies have shown that company-organized volunteer efforts have the biggest impact, with a whopping 93% of individuals who volunteer with their employer reporting increased happiness at work.
Employee engagement ideas
Ready to start focusing on employee engagement, but aren’t sure where to begin? Here are a few resources to get you started:
- 10 fail-proof employee engagement ideas to get you started.
- Easy-to-implement team building activities to boost employee engagement (no trust fall exercises, we promise).
- Set up a company volunteer program using these tips.
- Use our free cultural assessment tools to gain in-depth insights into your leadership style and company’s culture.
What’s your take?
Do you have an employee engagement tactic that’s worked quite well? On the flip side, if you’re an employee, what do you wish your employer would do to fix engagement at your organization? Tell us in the comments section!
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