Why Care About Employee Engagement?
Here’s an except from an article in Training Magazine by Rob Tartell that succinctly validates Employee Engagement not as a ‘nice-to-have’ or something workplace leaders ‘should’ do but as an approach that generates productivity and profitability and no one has to get crushed under the metaphorical wheels of industry on the way.
“The payoff of an engaged workforce is highlighted by two studies conducted by Towers Watson:
- A one-year study of 50 global companies compared those with highly engaged employees to those with low engagement. This study reported a 19 percent increase in operating income and 28 percent growth in earnings per share for companies with highly engaged employees. Companies with low levels of engagement saw operating income drop by 32 percent and earnings per share decline 11 percent.
- Another study looked at 40 global companies over a three-year period. This study found a spread of 5 percent in operating margin and a spread of 3 percent in net profit margin between companies with high employee engagement and those with low engagement.”
It’s not all about the money but that’s often why some workplace leaders don’t even entertain the prospect of ‘having a go’ at creating a workplace culture that is supportive of employee engagement. Sure, there are lots of noble reasons for doing it but it also pays off – literally.