Contact

Edelman

Global Practices

Employee Engagement

Seven Key Studies on the Business Impact of Employee Engagement

by

Published

Ask any internal communicator what they’re going to focus on in the coming year, and chances are they’ll mention something about “demonstrating the impact communications has on business results.” Connecting employee engagement and communications to the bottom line is one of those permanently hot topics in our field, and each year a variety of research is published on the subject. In this month’s edition of Edelman Connections, our Employee Engagement team rounds up seven studies worth perusing. Among the more attention-getting findings:

  • Engagement = dollars: Every one percent increase in employee engagement indicates a 0.6 percent growth in sales, accordingly to Aon Hewitt’s 2013 Trends in Global Employee Engagement report. Applying this logic to a $5 billion company with a gross margin of 55 percent and 15 percent operating margin, a one percent increase in engagement would be worth $20 million – hardly pocket change.
  • Communication drives performance: Companies that are highly effective at both communication and change management are 2.5 times as likely to be high-performing than those that are not, according to Towers Watson’s 2011-2012 Change and Communication ROI Study Report.
  • Engaged and trying harder at work: Seventy-five percent of companies with strong financial results report high or moderate engagement levels, versus just 47 percent for under-performing companies, according to a 2013 employee engagement benchmark study from the Temkin Group. Moreover, the study also found that engaged employees work harder: 96 percent of highly engaged employees say they try their hardest at work, compared with only 71 percent of those who are disengaged.

For these and more compelling research findings, check out our round-up below:

Tamara Snyder is a senior vice president with Employee Engagement.

Contact us