Why employee engagement matters
Over the past decade, organizations have increased their focus on creating a positive and productive work environment conducive to employee engagement. Rightfully so, as “research shows that for every point increase in employee engagement, organizations can expect a +0.5% increase in increased total revenue,” according to the ROI of Engagement guide. The guide is a compilation of research reports and shows that, in addition to increased revenue, an increase in employee engagement contributes to reduced costs linked to sick leave, employee turnover, recruitment, and productivity. A higher employee engagement also impacts customer satisfaction, safety, and quality.
Despite the enormous benefits of high employee engagement, McKinsey research shows that 53% of employees are on the spectrum of mildly disengaged to quitters. This means that most organizations can still do a lot to improve and maintain engagement and must treat it as an ongoing process, not a one-off project.
