Companies Realize Substantial Benefits When Employees Are Supported in Doing Jobs Effectively

Creating a culture where employees are highly motivated and well supported in doing their jobs effectively is not only good for employees, it’s good for the bottom line. That according to a new analysis of employee survey data from more than 400 companies spanning multiple industries globally.

Researchers found a direct relationship between highly engaged and enabled employees and increased company sales/earnings.

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Growth in Sales:

  • Companies where employees scored high on engagement saw nearly double the 5-year sales growth rates of those with low engagement scores.
  • Companies where employees scored high on feeling enabled to do their jobs saw nearly triple the 5-year sales growth rates of those with low scores in this area.

Growth in Earnings Per Share (EPS)

  • Companies where employees scored high on engagement saw nearly double the 5-year EPS growth rates of those whose employees scored low on motivation.
  • Companies where employees scored high on feeling enabled to do their jobs saw 33 percent higher 5-year EPS growth rates of those whose employees scored low in this area.

Researchers also found a strong relationship between engaged and enabled employees and retention and performance.

  • Performance: Highly engaged employees who are also well enabled to do their jobs are 21 percent more likely to exceed performance expectations.
  • Retention: Among employees scoring low on engagement and enablement, 45 percent intend to leave their current employers in the next two years. By contrast, just 8 percent of highly engaged and enabled employees express an intent to depart within 24 months.

SOURCE: Korn Ferry