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EmployeeEngagementResearch(MasterListof32Findings)­KevinKruse

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WouldYouLikeToBecomeaLeaderWhoDrivesMassiveEmotionalCommitment,Loyaltyand

EmployeeEngagement?

5/28/2015

EmployeeEngagementResearch(MasterListof32Findings)­KevinKruse

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EmployeeEngagementResearch(MasterListof

32Findings)

ByKevinonSeptember18,2012inBestOf,Uncategorized

3

Employeeengagementistheemotionalcommitmentanemployeehastotheorganizationanditsgoals,

resultingintheuseofdiscretionaryeffort.

Anemployee’sdiscretionaryeffortresultsintheEngagement­Profitchain.Becausetheycaremore,they

aremoreproductive,givebetterservice,andevenstayintheirjobslonger.Allofthatleadstohappier

customers,whobuymoreandrefermoreoften,whichdrivessalesandprofitshigher,finallyresultingin

anincreaseinstockprice.

anincreaseinstockprice. Thinkthatjustsoundslikeacademictheory?Thinkagain.Beloware

Thinkthatjustsoundslikeacademictheory?Thinkagain.Beloware29researchstudiesthatshowa

correlationbetweenengagementand:

Service29researchstudies thatshowa correlationbetweenengagementand: Sales Quality Safety Retention

Salesthatshowa correlationbetweenengagementand: Service Quality Safety Retention

Qualitythatshowa correlationbetweenengagementand: Service Sales Safety Retention Sales,ProfitandTotalShareholderReturns

Safetycorrelationbetweenengagementand: Service Sales Quality Retention Sales,ProfitandTotalShareholderReturns

RetentionService Sales Quality Safety Sales,ProfitandTotalShareholderReturns

Sales,ProfitandTotalShareholderReturns

RoleofFront­LineManagers

NOTE:Helpmetomaintainthislist!Pleasecontactmewithanynewresearchyouthinkshouldbe

addedtothislist.

SERVICE

Employees’customerserviceproductivityscoresandtheiremployeeengagementscoreshada

Companieswithhighemployeeengagementscoreshadtwicethecustomerloyalty(repeat

purchases,recommendationstofriends)thancompanieswithaverageemployeeengagement

levels.(Source:AreTheyReally‘OntheJob’?,Pont)

5/28/2015

EmployeeEngagementResearch(MasterListof32Findings)­KevinKruse

Inamajordepartmentstorechain,customersscoredhigherincustomerengagementmeasures whentheywereservicedindepartmentswithemployeeswhohadhighlevelsofemployee engagement.(Source:GettingEngaged,Bates)

Teamsclassifiedas“highperformancezoneforengagement”hada37%netpromoterscore(NPS)

MorrisonManagementSpecialistsincreasedclientsatisfactionby1percentagepointforevery2

SALES

QUALITY

UnnamedFortune100manufacturingcompanyreducedqualityerrorsfrom5,658partspermillion

SAFETY

Advantage,DevelopmentDimensionsInternational ) SAFETY

MolsonCoors,itwasfoundthatengagedemployeeswerefivetimeslesslikelythannonengaged employeestohaveasafetyincidentandseventimeslesslikelytohavealost­timesafetyincident. (Source:Effectivepracticeguidelines:Employeeengagementandcommitment.SHRM)

Studyof23,910businessunitscomparedtopquartileandbottomquartileengagementscoresand

RETENTION&ABSENTEEISM

MorrisonManagementSpecialistsreducedturnoverby1percentagepointforevery2percentage

pointsgainedinemployeeengagement(Source:EngagementLeadstoGrowthatMorrison)

UnnamedFortune100manufacturingcompanyreducedturnoverfrom14.5%to4.1%,while

66%ofhighlyengagedemployeesreportedthattheyhadnoplanstoleavetheircompany,while

only3%ofthemwereactivelylooking,comparedto12%and31%,respectively,fordisengaged

Thereisanegative.43correlationbetweenacompany’slevelofemployeeengagementandtheir

Highlyengagedemployeeswere87percentlesslikelytoleavetheircompaniesthantheir

Studyof23,910businessunitscomparedtopquartileandbottomquartileengagementscoresand

EngagedemployeesintheUKtakeanaverageof2.69sickdaysperyear;thedisengagedtake

6.19.(Source:EmployeeEngagement:HowtoBuildaHighPerformanceWorkforce.Gallup)

REVENUE,PROFITandSHAREHOLDERRETURNS

) REVENUE,PROFITandSHAREHOLDERRETURNS

Incompanieswhere60to70percentofemployeeswereengaged,averagetotalshareholder’s

return(TSR)stoodat24.2percent;incompanieswithonly49to60percentoftheiremployees

engaged,TSRfellto9.1percent;companieswithengagementbelow25percentsufferednegative

Companieswithhighlyengagedemployeesbeataveragerevenuegrowthintheirsectorby1

percentwhilecompanieswithlowengagementwerebehindtheirsector’srevenuegrowthbyan

Operatingmarginwas2.1%inlowengagementcompaniesversus3.75%inhighengagement

companies;netprofitmarginwas­1.38%inlowengagementcompaniesversus2.06%inhigh

engagementcompanies.(Source:Engagedemployeesdrivethebottomline.ISRReport)

A5%increaseintotalemployeeengagementcorrelatestoa.7%increaseinoperatingmargin.

Searsmeasuredthata5pointimprovementinemployeeattitudesdrovea1.3pointimprovementin

Studyof23,910businessunitscomparedtopquartileandbottomquartileengagementscoresand

Studyof89companiescomparedtopquartileandbottomquartileengagementscoresandfound

thatthoseinthetopquartilehad2.6timeshigherearningspershare(EPS)thanthatofthebelow­

Companieswithhighlevelsofemployeeengagementimproved19.2percentinoperatingincome

whilecompanieswithlowlevelsofemployeeengagementdeclined32.7percentoverthestudy

period.(Source:TheISREmployeeEngagementReport.TowersPerrin­ISR)

StandardCharteredBankreportedthatin2007theyfoundthatbrancheswithastatistically

significantincreaseinlevelsofemployeeengagement(0.2ormoreonascaleoffive)hada16per

centhigherprofitmargingrowththanbrancheswithdecreasedlevelsofemployeeengagement. (Source:Engagingforsuccess:Enhancingperformancethroughemployeeengagement,UK GovernmentStudy)

Astudyof64organizationsrevealedthatorganizationswithhighlyengagedemployeesachieve

twicetheannualnetincomeoforganizationswhoseemployeeslagbehindonengagement. (Source:TheImpactofEmployeeEngagement.Kenexa)

Astudyconductedacross39organizationsindicatesthatorganizationswithhighlyengaged

employeesachieveseventimesgreater5­yeartotalshareholderreturn(TSR)thanorganizations

whoseemployeesarelessengaged.(Source:TheImpactofEmployeeEngagement.Kenexa)

5/28/2015

EmployeeEngagementResearch(MasterListof32Findings)­KevinKruse

RoleofFront­LineManagers

Incompanieswhoadministeredanemployeeengagementsurvey,27%ofmanagersnever

CausationStudy;LinkageBetweenEngagementandOutcomes

Landmarklongitudinalstudy,using755retailbankemployeesandbusinessunitmetricsforafour

yearperiod,showedengagementhadmoreimpactonbusinessresultsthanviceversa.(Source:

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