Employee Engagement
What is employee engagement
- Employee engagement is not employee satisfaction or happiness.
- Employee engagement is the emotional commitment the employee has to the organization and its goals.
- When employees care—when they are engaged—they use discretionary effort.
What happens when the employees are engaged?
- According to Towers Perrin research companies with engaged workers have 6% higher net profit margins, and according to Kenexa research engaged companies have five times higher shareholder returns over five years.
- Engaged Employees lead to…higher service, quality, and productivity, which leads to…higher customer satisfaction, which leads to…increased sales (repeat business and referrals), which leads to…higher levels of profit, which leads to…higher shareholder returns (i.e., stock price)
What has to happen to make engagement work?
- The most important enabler: the employees believed that their senior management had a sincere interest in their well-being.
- The second driver was the extent to which employees believed that they had improved their skills and capabilities over the previous year.
- Leadership
Example:
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