Properly measured, employee engagement is a leading indicator for financial performance.
In any economy, organizations face constant pressure to increase revenue, productivity, profitability and increase shareholder value. What is often overlooked is the importance of how an unengaged workforce can negatively affect the bottom line. CEOs and business leaders who effectively address engagement can reap large increases in productivity and increase their shareholder value.
Engagement is not Satisfaction
Often “engagement” is confused with “satisfaction”. A poorly motivated and poorly supervised employee could spend all day on Facebook or on the phone with their friends and be “satisfied” with their job position. Would you call that “engaged”? If you measured employee satisfaction alone the results do little to predict financial or productivity results. Unfortunately, a number of popular surveys of “engagement” actually measure “satisfaction”. All “highly engaged” are likely to be “satisfied” but the reverse is not necessarily true.
“’Employee Engagement’ refers to the ‘Human Capital’ alignment of the employee’s energy and efforts to the organizations goals, values and mission.”
Former General Electric CEO Jack Welch placed engagement at the head of the top three measures to a company’s health (the next two are customer satisfaction and free cash flow). A relatively small investment can identify the drivers and impact of your level of employee engagement and considering it's importance to workplace productivity it may be well worth your time to learn more.
How much is your current engagement level costing your organization?
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What would 10% increase in engagement in your organization mean for your productivity? Your Profitability?
Engagement: A Leading Indicator for Financial Performance
Complementary Ebook explaining how engagement can be used to predict and influence financial performance.
