why does employee engagement matter?. why is it important?
TRANSCRIPT
Why does employee engagement matter?
Why is it Important?
Percentage of employees
actively engaged
30%Percentage of
employees who do not trust their managers
70%The UK has 6% lower average engagement levels than other large economies
(Kennexa, 2011)
6%Percentage below G7
productivity levels
(International comparison of
productivity gap)
20%
Imagine if 30% of lights didn’t work…
Imagine 30% of lights didn’t work……OR 30% OF COMPUTERS!
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
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
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
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
£26m of improvement opportunities
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
Absence levels reduced by 26%
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
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 growthby better engagingemployees 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
REVENUEGROWTH
Organisations in the topquartile of engagement scoresdemonstrated revenue growth2.5 times greater than those inthe bottom quartile.
CUSTOMERSATISFACTION
Companies with topquartile engagementscores average12% higher customeradvocacy.
PROFIT
Companies withengagementscores in the top25% had twice theannual net profit.
Employee Engagement:Statistics and Case Studies
PRODUCTIVITY
Organisations in the topquartile of employeeengagement scores had18% 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 rate40% lower than companies with low levels of engagement.
Employee Engagement:Statistics and Case Studies
HEALTH & SAFETY
Organisations with engagement in the bottom quartileaverage 62% more accidents than those in the top.
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.
