Perhaps the greatest challenge for Chief Human Resource Officers is to convince their executive teams ….and especially their CEO’s… that employee engagement scores really matter. Matter in a way that the front-line manager is the major driver of these scores and those leaders who cannot increase their scores over time are likely in the wrong chair.
Improving employee engagement is not simply about improving productivity - although organizations with a high level of engagement do report 22% higher productivity, according to a meta-analysis of 1.4 million employees conducted by the Gallup Organization.
Strong employee engagement promotes a variety of outcomes that are good for employees and customers.
Gallup has gathered employee survey data from more than 25 million respondents in 189 countries and 69 languages. When comparing engagement levels for the top 25% of the survey database to the bottom 25%, the more engaged groups showed the following improvements:
We sequenced this data based on what are the most important to CEO’s. But if the data only told us that profitability increased by 22%, shouldn’t that be sufficient evidence to convince?
Companies that experience high engagement also experience 147% higher earnings per share (EPS)
Specifically, organizations with an average of 9.3 engaged employees for every actively disengaged employee experienced a 147% higher EPS compared with their competition.
In contrast, those with an average of 2.6 engaged employees for every actively disengaged employee experienced 2% lower EPS compared with their competition during that same period.
Gallup segments surveyed employees into “engaged”, “not engaged” and “actively disengaged” and summarizes with the following:
Engaged employees are the ones who are the most likely to drive the innovation, growth and revenue that their companies desperately need. These engaged workers build new products and services, generate new ideas, create new customers and ultimately help spur the economy to create more good jobs.
Actively disengaged employees cost the US between $450 billion and $ 550 billion each year in lost productivity. They are more likely to steal from their companies, negatively influence coworkers, miss workdays and drive customers away.
Based on these definitions, it is no surprise that clusters of engaged employees create more profitability than actively disengaged employees.
The most successful organizations effectively engage their employees, leading to higher productivity and better financial outcomes.
Employees who are enthusiastic and contributing to moving the company forward, feel a stronger sense of purpose and are more likely to stay longer with an organization. They feel better and are able to contribute on a higher capacity.
The numbers don’t lie….employee engagement is a sound business strategy to actively implement.
For a no-obligation consultation, get in touch here.
As a leader, you don’t need to be competent in all areas - but your team does.
Strengths-based leadership is about focusing on your strengths, and delegating tasks that you’re not as good at to others who are more skilled or experienced. You can also use this approach to identify your team members’ strengths, and encourage them to use these in a way that benefits everyone.
Leaders are sometimes expected to excel at everything, and to have very few weaknesses. In reality, though, you’ll likely be an expert in a specific area only, despite your range of qualifications and experience, and this doesn’t guarantee that you’ll succeed elsewhere.
When you attempt to become an expert in all areas, you risk spreading yourself too thin and becoming ineffective. So it’s important to recognize your strengths and weaknesses
and delegate tasks that other could do better.
At GCF we help you to gain a deep understanding about your leadership strengths, weaknesses and blind spots.
We introduce you to the dynamics of a strengths-based organization and the most effective ways to communicate your vision, encourage positive behavior and manage cultural change.
Some of the benefits you can expect