New research from Gallup, has shown that employee engagement is a key driver of business’ success. The study found that companies with high employee engagement outperform their competition in business metrics across the board. Those businesses with active employee engagement programs in place almost double their odds of success. Additionally, the top 1 percent quadruple their success rate. Businesses that report high numbers of engaged employees generate 20 percent more sales than businesses that do not, and are 21 percent more profitable. These businesses also outperform the bottom quartile units by 10% in regards to customer loyalty and engagement.
The research also found employee engagement is directly correlated with job satisfaction and employee retention rates. Consequently, these businesses save money by reducing costs related to hiring, increasing retention rates, and cutting absenteeism in half. Businesses with disengaged employees suffer a 31 percent higher turnover rate, suggesting 3 out of 4 businesses have lackluster performance. Although 71 percent of managers see employee engagement as important, only a quarter that were surveyed by the Harvard Business Review consider their employees to be “highly engaged”.
Stress and disengagement are also correlated. Nearly 60 percent of employees that are stressed are disengaged, and this number only increases with salespeople who, according to research, are more likely to be chronically stressed. According to senior consultant and wellbeing specialist at Towers Watson, Rebekah Haymes, companies could take more responsibility for educating employees about the benefits of better sleep, physical activity, good nutrition and a work life balance in order to keep employees healthy, happy and productive, and it is vital that managers understand the real causes of stress in their organization.