WhyEmployeeEngagementMattersIf you still think employee engagement is too touchy-feely for business or just a passing fad, you’re wrong and there’s research to prove it. Employee engagement affects real business metrics, including productivity, turnover, customer satisfaction and the bottom line.

These recent articles and blog posts explain all that and more reasons why employee engagement matters to every business.

Employee Engagement Matters. The Guardian: “There is now significant research that employee engagement is at an all time low. In fact, a recent Gallup survey found that employee engagement levels in America fell to an average of 31.7 per cent in March, down from 32.9 per cent in February. Though the average for the first quarter of 2015 is higher than it was last year at this time (32.1 versus 31.7 per cent), it’s still declining overall….In fact, an article in the New York Daily News reports that nearly 70 per cent of U.S. employees are miserable at work and over 30 per cent are actively disengaged. Gallup’s research also suggests there is a strong correlation between employee engagement, and customer satisfaction, increased productivity, and overall profitability.”

Importance of Employee Engagement. Office Power: “As the CBI/Accenture 2013 Workforce Trends survey points out, an enthused workforce with high morale and engagement has now become business-critical. Participants said engagement brings major benefits in the shape of improved productivity and performance and increased customer and client satisfaction.

And 54% of the respondents were planning to prioritise employee engagement in the coming year. Engagement is good for the organisation as well as for employee wellbeing…There is less staff attrition and burnout as well, which is good for the financial health of a business – finding a replacement for an employee who has left can cost up to 150% of the departing employee’s salary. (American figures show that staff turnover leads to a loss of $11 billion a year.)”

Employee Engagement: Where it Began, Measuring it and Moving Forward. EPSI: “Employee Engagement continues to be a growing concern for many organizations as research continues to link engagement with an organization’s bottom line. Studies from Gallup tell us that engaged teams deliver higher customer satisfaction scores, higher productivity and higher profitability. Safe to say, if you’re a leader in any organization it’s critical that one of your primary concerns be building a culture with consistently high engagement….It doesn’t matter where you look; the theory of employee engagement has three common elements: Organizational Commitment, Job Satisfaction and Intention to Stay…Engagement is much more concerned with the two-way relationship of both organization and employee.”

Reality Check: 5 Things You Need to Realize About Your Employees. Entrepreneur: “An engaged employee is a productive employee. Unfortunately, for every engaged employee there are a handful of disengaged employees. Gallup’s 2014 employee engagement study of more than 80,000 employed adults revealed that more than half of employees are not engaged (51 percent) or are actively disengaged (17.5 percent) on the job…The key to employee engagement is purpose. Employees need to feel that their work efforts contribute to the overall company goals. Actively communicating these goals to the rest of the organization can help employees connect their individual goals to the company vision, which employees find both rewarding and motivating. Take it a step further by sharing company success with the entire organization. Celebrating successes with employees is a great way to build momentum and organically create engagement.”

Build the Bottom Line by Measuring and Improving Employee Engagement. FlashPoint: “Employee engagement is the key to bottom-line performance. When employees are engaged, they’re willing to go the ‘extra mile’ in their jobs. They learn continually, accept promotions, refer qualified job seekers to the organization, and commit to staying and growing with the organization, at least for a couple of years. Engaged employees have a significant impact on the company’s performance. It’s not enough to accept this as truth, however—you also need to back it up with numbers. Metrics-driven executives become increasingly supportive of engagement efforts when they see results, so you have to show them the data. It’s fairly straightforward to figure out the organization’s financial performance, but how do you measure engagement and make the connection?”



Talmetrix is an employee feedback and insights solution that helps organizations better attract and retain talent to achieve business goals. Our solution makes it easy for organizations to capture employee feedback (feelings) and organizational data (facts) to discover actionable insights. With a unique combination of software, content, data, and advisory support we can help you measure and improve your employee experience. Contact us today to learn how your company can start achieving better business results.

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