The Correlation Between Employee Engagement and Performance

Correlation Between Employee Engagement and Performance the word "facts" is highlighted under a magnifying glass

What Is The Correlation Between Employee Engagement and Performance?
The good news is that research proves that there is a positive correlation between employee engagement and performance.  Highly engaged workplaces grow 16.29% faster and have a 26% higher stock performance.  It can be said with confidence that employee engagement does indeed have a measurable impact on your bottom line.

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

5 Factors that Struck Our Research Team
Five performance factors stood out to our research team regrading the positive correlation between employee engagement and performance.

  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.Link Between Employee Engagement and Revenue Growth
  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?

    Correlation Between Employee Engagement and Stock Price

  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.

    Correlation Between Feeling Valued and Performance

  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.

    Correlation Between Career Growth and Performance

  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 Bottom Line
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 raise people and business performance.

To learn more about how to more effectively engage your workforce, download The Top 10 Most Powerful Ways to Boost Employee Engagement

 

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On behalf of Roche and my staff I would like to sincerely thank you for your help with this. The English as a Second Language (ESL) assessment and coaching that you provided for our team was a great success.

Cam Greig
Associate Director

Roche

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.

Duane Schroeder
Human Resource Manager

LSA exceeded all my expectations. We interviewed 7 potential training and consulting partners and selected LSA due to their expertise, flexibility, and breadth and depth of solutions. We were able to construct a management training course from the modules most appropriate to our needs, and are able to provide additional training from their well developed portfolio of experts. Our managers galvanized as a team throughout the session and are better prepared for the rigors of a competitive market.

Mitch Mandich
CEO

Edify

We recently partnered with LSA Global to offer our Supervisors and Managers a customized two-day management training program. Everyone who attended said it was by far the best management training program they had ever attended. The content was rich and highly interactive. The case studies were relevant. Each participant walked away from the training much better equipped to lead their teams.

Jeff Coon
Director of Human Resources

LSA helped to meet the needs of my teams within a very narrow timeframe. My team walked away with highly useful management tools and practices. LSA saved us time in delivering the right solution for our specific needs.

Sandeep Kumar
Director, Software Engineering, EPG

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

Thoratec

LSA provided top notch solutions right when and how we needed them. They exceeded my expectations from a speed, quality, and cost standpoint. I recommend them to anyone looking for a true business partner in the Learning and Development arena. The breadth and depth of their expertise has helped us hit tight deadlines across multiple projects.

Fortune 500 Financial Services Company
Director of Infrastructure & Technology

Here’s a token of my appreciation for ALL your efforts. I’m offering my most sincere appreciation, and it extends to all the folks who made our customized management development programs possible.

Susan Anderson
Workforce Planning Bureau

Harmonic has worked with LSA for over 8 years. We have found their partnership extremely beneficial. We recently implemented a Management Development Program that was designed and customized to support our company’s strategic initiative of hiring, building, and retaining key intellectual property and human talent. We worked closely with LSA to target and implement the right solutions with the greatest impact. I would recommend LSA to any company that’s looking for a trusted training and development partner.

Janice Passarello
Director of Human Resources

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

SeaTel has found our partnership with LSA Global to be very valuable and beneficial. We turned to LSA to customize a supervisory/leadership solution to meet our needs. LSA delivered a customized top quality solution. I’d recommend LSA Global to any company looking for a best-in-class training and consulting partner.

Kortney Riddle
HR Manager

In my years working with LSA, it seems like I’ve had a personal consultant at my fingertips to help me identify just the right solution to satisfy our needs. The entire LSA team has become a trusted friend of Actel — assuring we provide state-of-the-art learning to meet our complex, high-tech business and people needs.

Linda Mitchell
Training Manager

LSA’s customized Effective Presentation Skills program has helped me elevate my presentation skills to the next level. I now have a much greater self-awareness of my presentation skills and can leverage off of my strengths while working to improve upon other areas. I would definitely recommend this solution to anyone for whom business presentations are an integral part of their job.

Jim Elliott
Senior Marketing Manager

Samsung

Our company engaged LSA to do a specialized “train the trainer” program, and the consultant’s performance outdid our exceptionally high standards for such a program. Very crucial to the success of this program was the work done upfront to discuss our needs and to interview key members of our organization so that the program specifically met our goals. Our facilitators continue to comment on the success of the program. Thanks also for the follow-up.

Frank Abbott
Chief Financial Officer

LSA is an instrumental training outsourcing partner in helping us to build management capacity and strategically invest in our people. Their flexibility, depth, and breadth of expertise allows us to deliver top quality solutions that are directly tied to key business plans. Their ability to custom design, deliver, and evaluate our Management Curriculum has been excellent. They are true business partners and a pleasure to work with.

Margaret M. Mader
Vice President, Human Resources

Hyperion

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