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Monday, April 14, 2008

The ROI of Employee Engagement

It is no surprise to hear that a highly engaged workforce improves an organization's performance.

But as global research has highlighted, the sheer scale of the improvement in bottom-line results can be remarkable.

An employee engagement study by ISR has found:

  • A gap of almost 52 percent in the one-year performance improvement in operating income between companies with highly engaged employees versus companies whose employees have low engagement scores.
  • High engagement companies improved 19.2 percent while low engagement companies declined 32.7 percent in operating income over the study period.

BOTTOMLINE: "Our research continues to show that a well-substantiated relationship exists between employee engagement - the extent to which employees are committed, believe in the values of the company, feel pride in working for their employer, and are motivated to go the extra mile - and business results," said ISR Global Research Director Patrick Kulesa. "This data reaffirms the remarkable ability of an engaged workforce to impact a company's bottom line."

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