Companies with highly engaged workforces outperform their peers by 147% in earnings per share, according to Gallup. One hundred forty seven percent. Let that sink in. Hopefully, it’s no surprise to you now that engaged employees are the driving force behind successful businesses. In fact, companies that increased employee engagement spending by 10%, saw an average increase in profits of $2,400/employee per year according to the Workplace Research Foundation.
In one study done by Bersin and Associates, it was found that the U.S. currently spends about $720 million on employee engagement efforts. But Bersin and Associates expect these number to rise to $1.5 billion in the coming years.
So, what are companies buying with all this money?
Employees that are highly engaged are 38% more likely to have increased levels of productivity. Why? Because they show up with a can-do attitude, willing to take on new projects and challenges. Happy employees work harder and take less time off than their disengaged peers.
Engaged employees are likely to perform their job functions better than those are disengaged. Think about it- do you enjoy your trip to Starbucks when your barista is grumpy? Or does having a happy, friendly barista brighten up your day? You want your employees to make your customer’s day better, not worse, and you do this by making your employee’s day better, not worse.
When your employees provide better service, customers walk away from their experience happier and more likely to become repeat buyers. It’s no secret that there is a correlation between customer loyalty and sales – more loyal customers means more sales. Simple as that. Not to mention that the cost of retaining a current customer is so much less than acquiring a new one. See how this trickle-down effect is working?
Higher Shareholder Returns
Research by Aon Hewitt continues to show a strong correlation between employee engagement and financial performance, even in turbulent times. Organizations with high levels of engagement (65% or greater) continue to outperform the total stock market index and posted total shareholder returns 22% higher than average in 2010.
If you keep putting off your employee engagement efforts, sooner or later you’ll fall behind the competition. Getting started is easy with Ohana – schedule a call with one of our engagement consultants today!