employee engagement

Employee engagement pays

By April 28, 2015 No Comments

A recent study from US-based management consultancy Hay Group suggests that there’s a tangible link between employee engagement and a company’s bottom line.

That might seem relatively self-evident, but Hay Group went to a lot of trouble compiling this report so we should probably hear them out.

Engaging hearts and minds: preparing for a changing world tallies data from more than seven million employees worldwide and assesses the financial benefits of having an engaged workforce, of which there are plenty.

The report tells us that companies with the highest levels of engagement generate a revenue stream on average four and a half times higher than those with the lowest levels.

Speaking to HR Magazine in January, Ben Hubbard, the European head of engagement at Hay Group, said: “We’ve seen through research and wider studies that there clearly is a link between engagement and success. Clients that improve their engagement enablement see an improvement in performance over subsequent years.”

Employee engagement ROI

The return on investment of an engaged workforce is higher productivity and profitability, as well as lower absenteeism and employee turnover. Any corporate HR manager worth their salt will recognise these as the makings of a successful business model.

So why isn’t every employee in every company around the world reporting maximum levels of engagement? The key is to implement your strategy effectively, which as the Hay Group report states isn’t something every business manages to achieve.

The value of communication

Shifting its focus to the barriers of employee engagement, the report reveals that 43% of employees feel their employers don’t communicate with them openly and honestly. Open communication is one of the chief tenets of an effective employee engagement strategy and without which will only encourage your staff to feel disconnected and unengaged.

“We know from our research at Hay Group that it’s not about the strategy you have that determines your success, it’s all about the proportion of the strategy that you’re actually able to execute,” says Ben Hubbard. “That’s what really differentiates high-performing companies.”

Companies with the highest levels of engagement generate a revenue stream on average four and a half times higher than those with the lowest levels.

If you’re putting the time and effort into designing communications in the hope of keeping your staff engaged, you need to ensure you’re also in a position to deliver them. There’s no use in having a brilliantly thought-out internal comms strategy that doesn’t get to see the light of day.

With effective implementation, your internal comms can become the bedrock of your employee engagement strategy, facilitating a range of objectives that will positively affect your bottom line. They can increase communication between senior leaders and personnel; create a collaborative working environment; and develop a company’s internal culture. But without proper delivery, they’ll do none of these things.

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