This document summarizes research on the relationship between employee engagement and organizational performance. It finds that companies with higher employee engagement levels significantly outperform those with lower engagement across key metrics. Specifically, highly engaged organizations have twice the annual profit, 12% higher revenue growth, 18% higher productivity, 40% lower turnover, and better customer satisfaction, innovation, health and safety outcomes. The evidence demonstrates that improving employee engagement can substantially boost a company's financial and operational results.
3. Why is it Important?
70% 6% 20% 30%
Percentage of The UK has 6% Percentage Percentage of
employees lower average below G7 employees
who do not engagement productivity actively
trust their levels than levels engaged
managers other large (International
comparison of
economies
productivity gap)
(Kennexa, 2011)
9. 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
10. 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
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
11. 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
12. 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
£26m of improvement opportunities
13. 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
Absence levels reduced by 26%
Higher engagement levels have lower absence levels
14. High levels of engagement are positively
associated with wellbeing
Strong correlation between engagement and wellbeing
15. Bottom 10% has 2x voluntary turnover
Bottom 10% ranked by employee engagement had almost
twice the voluntary turnover
16. Engaged Employees:
Perform better, work
harder, longer, smarter
Work more vigorously, offer innovative
suggestions
17. Employee Engagement:
The Evidence
CEOs call on UK to deliver A high-level task force of some of the UK’s most
recognisable organisations is calling for every
GDP growth leader and manager across the economy to
by better engaging play their part in tackling the UK’s employee
employees at work.
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
18. Employee Engagement:
Statistics and Case Studies
PROFIT CUSTOMER
Companies with SATISFACTION
engagement
scores in the top Companies with top
25% had twice the quartile engagement
annual net profit. scores average
REVENUE 12% higher customer
GROWTH advocacy.
Organisations in the top
quartile of engagement scores
demonstrated revenue growth
2.5 times greater than those in
the bottom quartile.
19. Employee Engagement:
Statistics and Case Studies
PRODUCTIVITY
Organisations in the top
quartile of employee
engagement scores had
18% higher productivity.
INNOVATION EMPLOYEE TURNOVER
59% of engaged Companies with high levels of
employees said that their engagement show turnover rate
job brings out their most 40% lower than companies with low
creative ideas. levels of engagement.
20. Employee Engagement:
Statistics and Case Studies
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.
HEALTH & SAFETY
Organisations with engagement in the bottom quartile
average 62% more accidents than those in the top.