The Facts
The Concept
All the world’s greatest organisations share a common insight: the understanding that their most valuable resource is human – their employees and their customers. And they understand two important facts: people are emotional first and rational second, and because of that, employees must be emotionally engaged in order for the organisation to reach its full potential.
Gallup research in 2006 revealed that 5 out of 6 employees use 60% or less of their potential at work – and this is affecting not just your stock price right now, but also your organisation’s ability to develop and retain the best people. Being underutilised goes directly against the human need to make a difference. Brilliant, capable people actively seek work that provides a ‘purpose’ to what they do.
We know that emotionally engaged employees who can utilise their natural talents everyday, provide an instant and constant competitive edge that translates into sustainable profit and growth. They are the walking, talking adverts for your organisation – how they choose to behave today will affect your business results tomorrow.
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The Numbers
Below are a selection of facts and figures supporting the true business value of employee engagement:
'Engaged workforces yield a 38% increase in productivity and a 27% increase in profitability.'
Gallup, Employee Engagement survey, 2003
'Companies with strong employee engagement have 11% higher annual total return to shareholders and 5.2% higher return on investment capital.'
McKinsey & Co, Performance Ethic Research, 2003
'A 5% increase in engagement forecasts a 0.7% increase in operating margin.'
Harvard Engagement Article, 2002
'Moving employees from a moderate to high state of engagement makes them almost twice as likely to want to stay with the company.'
Tavers Perrins Research, 2004
'Business units that score above the median in both employee and customer engagement are an average 3.4 times more effective financially (in terms of sales and revenue, performance to target and year-on-year gains).
Denison Research, 2003

