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.
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 had nearly 21% more engaged employees.
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.
The Bottom Line
If you are looking to grow your company, 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 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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