Research-Backed Links Between Employee Engagement and Success

the word "facts" is highlighted under a magnifying glass

Highly engaged workplaces are more successful…they grow 16.29% faster and have a 26% higher stock performance. Employee engagement does indeed have a measurable impact on your bottom line. We have the evidence now that proves what we have believed all along…positive employee engagement drives positive business outcomes. Engagement matters a lot.

We conducted a study of 21 organizations all of which were publicly traded and have conducted a Best Places to Work Engagement Survey in at least three consecutive years from 2010 to 2013. Each averaged more than 2,000 employees, and they represented different industries and diverse geographical areas.

Here are the results across five factors that struck our research team.

  1. Revenue Growth
  2. Stock Price Appreciation
  3. Perception of Feeling Valued
  4. Opportunities for Career Growth
  5. Employee Retention and Trust In Leadership

 

1. Revenue Growth

The companies in the study with the highest employee engagement ratings experienced 16.29 percentage points higher revenue growth over three years than those with lower engagement scores. This is quite a statement considering that all survey participants are purposefully trying to win the Great Places to Work Contest as part of their talent management strategy and employee brand proposition.

While average revenue grew for all entrants over the three year period (a sign to us that engaged workers perform well), those with higher revenue growth (39.74% compared to 23.45%) had nearly 21% more engaged employees (75.6% compared to 54.8%).

With regard to quarterly revenue growth, organizations with the highest level of engagement experienced a whopping 18% greater quarterly revenue growth during the past 12 months.

Graph 1

 

2. Stock Price Appreciation
Organizations with the highest level of engagement also experienced 26% greater stock price growth during the past 52 weeks. The chart below illustrates the difference in stock price growth. Now wouldn’t your shareholders like that?

Graph 2

3. Perception of Feeling Valued
One employee engagement survey item dealt with whether or not employees believed that the “leaders of the organization value people as their most important resource.” This is a clear measure of engagement and, indeed, showed the greatest difference in engagement scores (15.2% higher) between the two groups.

Graph 3

4. Opportunities for Career Growth
Another significant factor in creating high employee engagement is the opportunity for career growth and advancement. When employees see where their career path could take them within the company, they are more engaged. Here is also reflection of that measure on overall growth with a 12.4% difference in career growth scores between high and medium growth companies.

Graph 4

5. Employee Retention and Trust In Leadership
In the area of Employee Retention, the difference between the two company groups was .48 on a six-point scale. And in the area of Trust in Leadership, there was a .47 difference. Both are statistically significant enough to take notice.

The conclusion is clear. If you are looking to grow your company, you had better be sure your employees will be working with, not against, you. How engaged are they? Do they feel valued? Do they have career development opportunities? Do they want to stay? Do they trust their leaders? Get the answers to these questions and make the moves required to improve employee advocacy, discretionary effort and intent to stay in order to become a high growth company.

Benchmark your employee engagement practices to see where you stand.

Download our free employee engagement and retention toolkit for leaders.

 

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I’ve been associated with LSA for the last 8 years and have found them to be an extremely professional, well managed full service training organization. Since working with LSA, I’ve participated in a number of solutions ranging from Performance Management to Assertiveness Training – I’ve found that the quality of the resources is superior. They are well prepared and have definitely done a considerable amount of pre-work in order to customize our culture and business into the total learning experience – making it most beneficial for our employees.

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We engaged LSA to design and deliver a 6-month custom executive coaching program for a group of our key leaders. The focus of the program was to help a core group of senior leaders to leverage previous investments in management training, to ensure the engagement and retention of key employees, and to push critical strategic initiatives forward. Even with the high expectations of our senior people, LSA has completely exceeded our expectations. I would recommend them to anyone looking to create and implement a custom coaching methodology using proven tools to drive true change.

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We signed up with LSA early on–as their 22nd Member! Since then, our organization’s learning needs have increased and decreased and increased again with the changing times. The beauty of the LSA business model is its flexibility…when we needed to supplement our own internal resources, we used LSA services knowing that we could depend on the outstanding quality of the leadership development and management training programs they provide.

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VNUS Medical has been very pleased with the effective management development programs that LSA Global has delivered for us over the last four years. The programs have been universally facilitated by experienced and best in class instructors. The knowledge gained by our management team has been put into practice very quickly. VNUS is very happy to be working in partnership with LSA because they consistently deliver excellent programs that receive exceptional feedback from our management team.

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LSA helped change our entire culture around meetings, making them more effective and efficient, thus enabling us to concentrate on driving more business.

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VP of Human Resources

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We consider LSA Global our outsourced learning and development partner. We worked closely with LSA to customize a management development program to meet our growing business needs. I would highly recommend LSA to any company wanting to deliver quality learning solutions.

Terri Wright-Scheer
Vice President Human Resources

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Congratulations on your pro-activity in establishing this program and developing such an effective New Employee Orientation course.

Farhat Ali
President and Chief Executive Office

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For past year LSA has provided development to a group of key individuals at our manufacturing plant who author and review technical reports. The feedback from the sessions has been extremely positive. We have seen marked improvement in the quality of output from the attendees who have taken the program. I can strongly recommend the services that LSA provides. Their facilitators are top notch and the programs are high quality. LSA offers some of the most comprehensive full service solutions available.

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I consistently look to LSA Global when I need custom programs put together for my client groups. I can always count on LSA to do a thorough needs analysis and to put together spectacular programs that are well received. Their management development and performance management expertise and professionalism make them one of my top-rated learning and development partners.

Stephanie Webb
HR Program Manager

Rambus

LSA’s Employee Engagement Consulting and Survey work has provided critical visibility into: how well our people are holding up under the general economic environment, as well as, the specific challenges that face biotechnology companies in their efforts to discover and develop new medicines; their level of alignment and commitment to XOMA’s Vision and mission critical strategies; how leadership practices and management systems support an environment that engender commitment, and the specific actions that our leaders can take to improve on areas that are important to our people. I highly recommend LSA’s employee engagement solutions.

Chris Wells
Vice President, HR and IT

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LSA helped us design and deliver a blended learning solution for our leaders to help drive our growth plans in a way that aligned with our specific culture and values. LSA understood our business, had deep expertise in the content areas, tailored the programs to fit our specific needs, and delivered great results. They constantly strive to deliver business impact and align their solutions with our business initiates, culture, and performance management systems. I highly recommend them to anyone looking to take their leaders to the next level.”

Beth A. Taylor
Vice President of Human Resources

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What a refreshing change from the half-baked psycho-babble you normally get from “training” organizations. LSA gives you the assistance you need to define and reach your goal, and then they give you a results driven plan – not just a temporary fix. They are great to work with, and even more importantly, they “get it!”

David Fiano
Vice President Human Resources

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I continue to be impressed by the level of leadership development and management expertise and quality of advice and facilitation that LSA has to offer. What a smart and client-centric group of great people who really know how to help leaders attract, engage, develop and retain top talent.

Tracy Esposito
Director, HR Business Partner

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