Too often companies get into endless discussions about whether or not there is a quantifiable ROI on efforts such as employee training, recognition programs, employee engagement, team based problem solving and leadership development.
In response to several client requests our firm recently compiled the results of several global studies and discovered very compelling financial information. Shown below are the highlights of the published reports we found:
Watson Wyatt Study:
42% higher return on shareholder investment in companies with strong, employee engagement cultures and employee confidence in leadership
Positive culture, employee satisfaction and effective leadership generate an average of 1-4% higher profits on an annual basis
Employee engagement cultures in top quartile average 12% higher in customer retention, 18% higher productivity, 12% higher profitability
Companies with strong cultures, engaged employees and leaders who employees have confidence in show EPS of 2.6 times average of all other companies
Towers Perrin – International Survey Research, Inc
Strong cultures with high level of employee engagement show sustained year-to-year improvements in operating income of 19.2% compared to a decline of 32.7% in other companies
Strong engagement cultures show sustained improvements of 13.7% in net income growth compared to a decline of 3.8% in other companies
Corporate Leadership Council & Lyman Study
50-87% lower turnover in cultures of engagement, satisfaction and confidence in leadership
Having been equipped with this financial data several of our clients have decided to conduct a baseline survey to determine their current levels of employee engagement, benchmark their results against high performing companies with proactive engagement initiatives and then set action plans.
How engaged are your employees? How effective are your leaders in creating a sense of ownership among employees and utilizing the talents of your human resource assets? These things do have a dollar value.