Employee Engagement Brings Home The Bacon
Organizations with higher sustainable engagement report an operating margin about 3 times higher than companies with lower sustainable engagement. So suggests this study. “In a recent analysis of 50 global companies, Towers Watson finds that companies with high sustainable engagement report an average one-year operating margin of 27 percent, which is close to three times higher than companies with low engagement.”
I thought I’d blog about this study because it, like previous research, highlights the tangible returns on investment of employee engagement but it also slaps me across the face with a reminder that a key word must be sustainable. I need to be more thorough with that myself. Too many organisations approach improving their engagement with programmes aligned to awards or competitions for ‘best place to work.’ This isn’t inherently a bad thing as it drives attention and resource towards an outcome with great benefits but it does rather suggest a degree of short term-ism. That engagement is something to be achieved – a box to be ticked before moving on to the next big thing.
As long as these contests and programmes have factored in some bedding-in and long term maintenance of the changes being implemented, I’d probably be OK with them. If it’s just ‘flavour of the month’ stuff, then it misses the point and will be negative longterm as employees realise bosses weren’t really serious and credible.
Once the term employee engagement gets associated with passing management fads, it’ll be impossible to get any credibility back and the genuine tangible benefits will be missed. Association is a powerful thing. Just referencing bacon in my blog post’s title has me finishing right now to go and make a move on a breakfast that is going to be a less healthy and more salty and fatty option than I’d initially planned. Mmm bacon…
Posted on February 18, 2013, in Employee Engagement, The Brain-Based Boss and tagged bacon, bringing home the bacon, employee engagement, management fads, return on investment, ROI. Bookmark the permalink. Leave a comment.