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Engagement and Enablement Will Boost Company Performance

A recent item in Hay Group Insight Connections talks about some of the insights the company has gleaned from its research into employee engagement with hundreds of companies. Following are some of the highlights of the Hay Group research.

• Organizations in the top quartile on employee engagement demonstrate revenue growth that is 2.5 times that of organizations in the bottom quartile. And companies in the top quartile on both engagement and employee enablement achieve growth that is 4.5 times greater.

• Companies with high levels of employee engagement show turnover rates that are 40 percent lower than companies with low levels of engagement. (Hay Group estimates the cost of replacing employees to be between 50 percent and 150 percent of salary.)

• Hay’s research linking employee survey data to performance ratings show that highly engaged employees are 10 percent more likely to exceed performance expectations. But highly engaged and enabled employees are 50 percent more likely to exceed performance expectations.

The bottom line, according to the Hay Group, is that “highly engaged and enabled workers create dramatically better business outputs, more loyal customers, and better financial performance during good times and bad – and organizations are likely to retain these employees and sustain these results over a longer period of time.”

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