“To win in the marketplace, you must first win in the workplace.”
– Doug Conant, CEO of Campbell’s Soup
Employee engagement is a key driver of organizational performance. Organizations that exhibit highly engaged workforces outperform their peers. For example,
- The Great Places to Work Institute indicates that the “100 best places to work” outperformed the S&P500 four fold from 1990-2009.
- Total shareholder return at companies with highly engaged workforces are 54% higher than the average according to AON Hewitt research.
- Employees who are fully engaged perform 20% better than their peers (SHRM research).
- Fully engaged employees are 87% less likely to leave the organization (SHRM research).
- In a study at MolsonCoors, engaged employees were five times less likely than non-engaged employees to have a safety incident and seven times less likely to have a lost time safety incident.
- In a study at Caterpillar, the company realized a $8.8M savings from reduced absenteeism, turnover and overtime when they boosted engagement in a European plant. Caterpillar saw a 70% increase in output in an Asian plant when they boosted engagement.
- AON Hewitt Research shows that a 5% increase in employee engagement results in a 3% increase in revenues the following year.
- AON Hewitt Research also found that companies with the most engaged employees experience a 22% total shareholder return versus the average of 12%.
Engagement Starts with a Strategy
While engagement is a key indicator of organizational performance, there is a lot of room for improvement in engagement for most organizations. In the U.S., just 32% of workers were engaged in 2014 according to the Gallup organization. Meanwhile, one survey showed that while 79% of businesses were worried about engagement and retention (the #2 issue after leadership), only 8% of large companies felt they had programs to help employees adapt to increasing demands in the workplace.
Get Started on Your Engagement Journey
So why are organizations not putting more effort into improving engagement when the ROI is so compelling? We believe organizations need assistance getting their engagement efforts kick-started. Oftentimes, Human Resource Departments and management are tasked with improving employee engagement, but they are not given any tools or strategies for how to approach this challenge. We believe Transcend is a great place to start as we help customize our template of engagement tools to your needs. We give you the head start you need and help you quickly realize the ROI on employee engagement that is out there waiting for you to realize.