It comes from case studies compiled by many leading companies and organisations.
The cumulative effect of these different studies leaves little room for doubt about the statistical importance of engaging employees.
Employee engagement cannot be achieved by a mechanistic approach which tries to extract discretionary effort by manipulating employees’ commitment and emotions.
Employees see through such attempts very quickly and can become cynical and disillusioned.
Survey after survey indicates that only around one third of UK workers say they are engaged – a figure which leaves the UK ranked ninth for engagement levels amongst the world’s twelfth largest economies as ranked by GDP (Kenexa 2009). The most recent ONS survey found that output per hour in the UK was 15 percentage points below the average for the rest of the G7 industrialised nations in 2011; on an output per worker basis, UK productivity was 20 percentage points lower than the rest of the G7 in 2011.
This represents the widest productivity gap since 1995. As this paper demonstrates, there is a firm correlation between employee engagement and high organisational productivity and performance, across all sectors of the economy.In most organisations, employee engagement is one of the critical priorities for HR departments and management teams. While most people understand that engaged employees are often happier and more satisfied in their job, the main reason that engagement is now a focal point is because it leads to real business results.High employee engagement can lead to better productivity, reduced turnover and increased revenue – amongst other things.This paper highlights the evidence for the effectiveness of employee engagement strategies in improving performance, productivity and, in the private sector profitability.This evidence comes from academic research, and from research using data compiled by research houses such as Towers Watson, Kenexa, Hay, Aon Hewitt and Gallup.Employee engagement is about being included fully as a member of the team, focussed on clear goals, trusted and empowered, receiving regular and constructive feedback, supported in developing new skills, thanked and recognised for achievement.Engaged organisations have strong and authentic values, with clear evidence of trust and fairness based on mutual respect, where two-way promises and commitments – between employers and employees – are understood and fulfilled.It is also clear that engagement impacts more on performance than the other way around.A study in a leading retail bank found that employee engagement levels predicted subsequent business level performance over a three year horizon while business unit performance predicted engagement only over a single year. ” Sentiment-based questions such as these are common on the formal annual or bi-annual surveys that organizations use to gauge employee engagement and the responses reveal some of what employees feel about their jobs and workplace.When organizations do run traditional surveys, the problem is that managers across the enterprise and at all levels — from senior executives to regional product managers — have grown so accustomed to the status quo that they don’t question whether or not the survey data provides insight into business outcomes. It’s important to focus the survey on questions that help organizations improve employee performance.