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.
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