Research by Gallup, Deloitte and others show that employee disengagement is at an all time high, costing US Employers over $300 Billion per year and that 1/3 of working Americans are planning to find a new job once the recession is over.
Companies lose $300+ billion a year because of employee disengagement. (Ref. Gallup Survey, Oct. 2011)
Your company does NOT have to be one of them!
Top-performing organizations understand that employee engagement is a strategy that drives business outcomes. Employee engagement is a strategic focus supported by methodologies for driving improvement and organizational change. The best performing companies know that developing an employee engagement strategy is critical.
Do not assume that employee engagement is the responsibility of the HR department. Significant management involvement is key to seeing positive results. Higher salaries alone will not increase engagement. Employee work ethic, or lack of it, is not the root cause of engagement problems. Management has to accept accountability to do something to improve engagement.
According to Gallup, employee engagement at the business/work unit level relates to nine major performance outcomes across all industries including turnover, absenteeism, safety, productivity, and profitability. The graph above displays results from Gallup’s latest meta-analysis, which aggregates data from 199 research studies across 152 organizations in 44 industries. The bars represent median differences between business/work units in the top quartile of employee engagement scores and those in the bottom quartile.
VRT Management employs a unique employee engagement survey focused on Processes, Work Management, Relationships and Leadership that captures actionable information at the team, department, business unit and organization-wide level.
Perhaps the most essential findings for business leaders are that:
World Class ROI/Profitability tied to Employee Engagement
- The median productivity level among top-quartile business/work units was 18% higher than among bottom-quartile units; and
- The median profitability level among top-quartile units was 16% higher than among those in the bottom quartile.
A recent analysis Gallup conducted at the organization level found that across industries, organizations’ employee engagement scores directly related to their profitability. Organizations with employee engagement scores in the top quartile of Gallup’s overall database in 2006 and 2007 posted earnings in 2007 and 2008 that were on average 28% higher than those of their competitors. Among organizations with engagement scores in the top decile, Profitability topped those of their competitors by an average of 72%.
Moreover, organizations with comparatively high proportions of engaged employees were much less likely than the rest to see a decline in profitability in 2008, the year after the recession officially began.
VRT's Employee Engagement Strategy
Think Company-wide, Act Department/function-wide to develop Predictive Capability
- Employee Engagement Survey administered to employees captures effectiveness in four key organizational metrics: Processes, Work Management, Relationships, Leadership
- Employee engagement score indexed to department/unit business performance outcome metrics
- Employee engagement survey and performance outcome metrics used to conduct employee engagement focus groups with employees and management groups
- Recommendations for laser-focused employee engagement strategies developed and tied to performance/ROI metrics
- Selected employee engagement initiatives approved and funded. Implementation includes monitoring performance outcomes for ROI
- Continue Employee Engagement Survey on regular basis. Track with performance outcomes over time. Measure success.