If companies want to bolster productivity and profitability they need to engage with their employees. Why? Well core reasons include increased customer loyalty, higher operating income, lower attrition and decreased disengagement losses.
Sprigg offers a suite of online features which grows employee engagement and improves your company’s bottom line. This is achieved through metric-driven online performance management tools which helps foster conversations, enables employees to set and achieve goals, and gives managers the tools to grow company profits.
So how do we know that more engaged employees leads to more competitive and profitable companies?
Simply put, the facts speak for themselves. Here are some recent findings which highlights the power of enhanced employee engagement:
Profitability & Attrition
The Corporate Leadership Council conducted a research project which considered the engagement level of 50,000 employees around the world to determine its direct impact on both employee performance and retention. Findings included:
- Engaged companies grow profits as much as 3X faster than their competitors.
- Highly engaged employees are 87 percent less likely to leave the organization.
David MacLeod’s and Nita Clarke’s research, prepared for the UK government (Engaging for Success: enhancing performance through employee engagement), found the following correlations to employee engagement:
- Companies with low engagement scores earn an operating income 32.7 percent lower than companies with more engaged employees.
- Similarly, companies with a highly engaged workforce experience a 19.2 percent growth in operating income over a 12-month period.
Customer Loyalty, Productivity, and Turnover
Any business owner can tell you that optimizing productivity levels is an uphill battle, and customer loyalty is what companies depend on to make payroll. (If only employees would understand that— right?) In an article published by Jonathan Pont, the most-engaged workplaces experienced the following performance metrics:
- Twice the level of customer loyalty
- 2 times higher productivity
- Half as much turnover
Cost of Disengagement
As if the business metrics that correlate to high levels of employee engagement aren’t convincing enough, let’s take a look at how much disengaged employees can cost a company. McLean & Company found some very compelling correlations:
- A disengaged employee costs an organization approximately $3,400 for every $10,000 in annual salary.
- Disengaged employees cost the American economy up to $350 billion per year due to lost productivity.