Employee Engagement

The Payoff of Employee Engagement


This article originally published on LinkedIn by agencyEA on December 10, 2016, and republished with permission.

Employees are an organization’s most important asset, but most don’t invest the time and resources to ensure its employees are engaged.

  • Only 29% of employees are actively engaged in their jobs
  • 17% of employees are actively disengaged
  • 54% of employees are not engaged at all

Most employers often mistake employee satisfaction for employee engagement:

A satisfied employee shows up to their daily 9-to-5 without complaint, going through the routine and churning out work for a paycheck. This employee, while satisfied with their job, will not go the extra mile on their own, or advocate for their employer, and will most likely take the new job offer with a bump in pay.

An engaged employee has an emotional commitment to the organization and its goals. They don’t simply work for a paycheck, or move up to the corporate ladder, but they work on behalf of the organization’s goals and use discretionary effort. They fully embody and believe in the organization’s missions and values.

What is the payoff of employee engagement?

  • Companies with highly engaged workforces outperform their peers by 147% in earnings per share.
  • Business Units in the top engagement quartile experience 65% less turnover
  • Companies whose employees are engaged experience 10% to 15% higher profit growth
  • Engaged companies have 6% higher net profit margins
  • Organizations that successfully engage their customers and their employees experience a 240% boost in performance-related business outcomes
  • Business Units in the top engagement quartile experience 28% less shrinkage

Key Takeaway

Ultimately, engaged employees deliver high-quality services, which leads to higher customer satisfaction, generating higher sales and profit margins, which results in higher shareholder returns.

For more insights on how to better engage your employees, download our free white paper, or contact Lucy Kaegi, Director of Business Development at agencyEA.

Lucy Kaegi

Director of Business Development, agencyEA

311 W. Watson St. Chicago, IL 60610

(312) 651-6332