5/28/2015

EmployeeEngagementResearch(MasterListof32Findings)KevinKruse

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WouldYouLikeToBecomeaLeaderWhoDrivesMassiveEmotionalCommitment,Loyaltyand
EmployeeEngagement?
http://www.kevinkruse.com/employeeengagementresearchmasterlistof29studies/

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EmployeeEngagementResearch(MasterListof32Findings)KevinKruse

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EmployeeEngagementResearch(MasterListof
32Findings)
ByKevinonSeptember18,2012inBestOf,Uncategorized
3
Employeeengagementistheemotionalcommitmentanemployeehastotheorganizationanditsgoals,
resultingintheuseofdiscretionaryeffort.
AnemployeesdiscretionaryeffortresultsintheEngagementProfitchain.Becausetheycaremore,they
aremoreproductive,givebetterservice,andevenstayintheirjobslonger.Allofthatleadstohappier
customers,whobuymoreandrefermoreoften,whichdrivessalesandprofitshigher,finallyresultingin
anincreaseinstockprice.

Thinkthatjustsoundslikeacademictheory?Thinkagain.Beloware29researchstudiesthatshowa
correlationbetweenengagementand:
Service
Sales
Quality
Safety
Retention
Sales,ProfitandTotalShareholderReturns
RoleofFrontLineManagers
NOTE:Helpmetomaintainthislist!Pleasecontactmewithanynewresearchyouthinkshouldbe
addedtothislist.
SERVICE
Employeescustomerserviceproductivityscoresandtheiremployeeengagementscoreshada
correlationof.51.(Source:LinkingPeopleMeasurestoStrategy.TheConferenceBoard)
Companieswithhighemployeeengagementscoreshadtwicethecustomerloyalty(repeat
purchases,recommendationstofriends)thancompanieswithaverageemployeeengagement
levels.(Source:AreTheyReallyOntheJob?,Pont)
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Inamajordepartmentstorechain,customersscoredhigherincustomerengagementmeasures
whentheywereservicedindepartmentswithemployeeswhohadhighlevelsofemployee
engagement.(Source:GettingEngaged,Bates)
Teamsclassifiedashighperformancezoneforengagementhada37%netpromoterscore(NPS)
versus10%NPSforteamsoutsideofhighperformancezoneforengagement.(Source:Aon
HewittEuropeanManagerSurvey2011.AonHewitt)
MorrisonManagementSpecialistsincreasedclientsatisfactionby1percentagepointforevery2
percentagepointincreaseinemployeeengagement(Source:EngagementLeadstoGrowthat
Morrison,TalentManagement)
SALES
FabickCATimprovedpercentofindustrynetsalesby300%(Source:ACaterpillarDealer
UnearthsEmployeeEngagement,GallupBusinessJournal)
FabickCATimprovedcustomerengagementscoresby8%(Source:ACaterpillarDealerUnearths
EmployeeEngagement,GallupBusinessJournal)
QUALITY
UnnamedFortune100manufacturingcompanyreducedqualityerrorsfrom5,658partspermillion
to52partspermillion.(Source:EmployeeEngagement:TheKeyToRealizingCompetitive
Advantage,DevelopmentDimensionsInternational)
SAFETY

MolsonCoors,itwasfoundthatengagedemployeeswerefivetimeslesslikelythannonengaged
employeestohaveasafetyincidentandseventimeslesslikelytohavealosttimesafetyincident.
(Source:Effectivepracticeguidelines:Employeeengagementandcommitment.SHRM)
Studyof23,910businessunitscomparedtopquartileandbottomquartileengagementscoresand
foundthatthoseinthebottomquartileaveraged62%moreaccidents.(Source:GallupQ12Meta
Analysis,Gallup)
RETENTION&ABSENTEEISM
MorrisonManagementSpecialistsreducedturnoverby1percentagepointforevery2percentage
pointsgainedinemployeeengagement(Source:EngagementLeadstoGrowthatMorrison)
UnnamedFortune100manufacturingcompanyreducedturnoverfrom14.5%to4.1%,while
absenteeismdroppedfrom8%to4.8%.(Source:EmployeeEngagement:TheKeyToRealizing
CompetitiveAdvantage,DevelopmentDimensionsInternational)
Employeeswithlowerengagementarefourtimesmorelikelytoleavetheirjobsthanthosewho
arehighlyengaged.(Source:Drivingperformanceandretentionthroughemployeeengagement.
CorporateLeadershipCouncil)
66%ofhighlyengagedemployeesreportedthattheyhadnoplanstoleavetheircompany,while
only3%ofthemwereactivelylooking,comparedto12%and31%,respectively,fordisengaged
employees.(Source:TowersPerrin2004EuropeanTalentSurvey:ReconnectingwithEmployees:
Attracting,Retaining,andEngaging,TowersPerrin)
Thereisanegative.43correlationbetweenacompanyslevelofemployeeengagementandtheir
voluntaryturnoverrate.(Source:LinkingPeopleMeasurestoStrategy.TheConferenceBoard)
Highlyengagedemployeeswere87percentlesslikelytoleavetheircompaniesthantheir
disengagedcounterparts.(Source:Drivingperformanceandretentionthroughemployee
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engagement.CorporateLeadershipCouncil)
Studyof23,910businessunitscomparedtopquartileandbottomquartileengagementscoresand
foundthatthoseinthebottomquartileaveraged31%51%moreemployeeturnover.(Source:
GallupQ12MetaAnalysis,Gallup)
EngagedemployeesintheUKtakeanaverageof2.69sickdaysperyearthedisengagedtake
6.19.(Source:EmployeeEngagement:HowtoBuildaHighPerformanceWorkforce.Gallup)
Engagedemployeesare87%lesslikelytoleavetheorganizationthanthedisengaged.(Source:
Drivingperformanceandretentionthroughemployeeengagement.CorporateLeadershipCouncil)
REVENUE,PROFITandSHAREHOLDERRETURNS

Incompanieswhere60to70percentofemployeeswereengaged,averagetotalshareholders
return(TSR)stoodat24.2percentincompanieswithonly49to60percentoftheiremployees
engaged,TSRfellto9.1percentcompanieswithengagementbelow25percentsufferednegative
TSR.(Source:Employeeengagementatdoubledigitgrowthcompanies,HewittResearchBrief)
Companieswithhighlyengagedemployeesbeataveragerevenuegrowthintheirsectorby1
percentwhilecompanieswithlowengagementwerebehindtheirsectorsrevenuegrowthbyan
averageof2percent.(Source:WorkingToday:Understandingwhatdrivesemployeeengagement.
The2003TowersPerrinTalentReport)
Operatingmarginwas2.1%inlowengagementcompaniesversus3.75%inhighengagement
companiesnetprofitmarginwas1.38%inlowengagementcompaniesversus2.06%inhigh
engagementcompanies.(Source:Engagedemployeesdrivethebottomline.ISRReport)
A5%increaseintotalemployeeengagementcorrelatestoa.7%increaseinoperatingmargin.
(Source:TowersPerrin2004EuropeanTalentSurvey:ReconnectingwithEmployees:Attracting,
Retaining,andEngaging,TowersPerrin)
Searsmeasuredthata5pointimprovementinemployeeattitudesdrovea1.3pointimprovementin
customersatisfaction,whichinturndrovea0.5%improvementinrevenue.(Source:The
EmployeeCustomerProfitChainatSears,HarvardBusinessReview)
Studyof23,910businessunitscomparedtopquartileandbottomquartileengagementscoresand
foundthatthoseinthetopquartileaveraged12%higherprofitability.(Source:GallupQ12Meta
Analysis,Gallup)
Studyof89companiescomparedtopquartileandbottomquartileengagementscoresandfound
thatthoseinthetopquartilehad2.6timeshigherearningspershare(EPS)thanthatofthebelow
averagescores.(Source:Investors,TakeNote:EngagementBoostsEarnings,Gallup)
Companieswithhighlevelsofemployeeengagementimproved19.2percentinoperatingincome
whilecompanieswithlowlevelsofemployeeengagementdeclined32.7percentoverthestudy
period.(Source:TheISREmployeeEngagementReport.TowersPerrinISR)
StandardCharteredBankreportedthatin2007theyfoundthatbrancheswithastatistically
significantincreaseinlevelsofemployeeengagement(0.2ormoreonascaleoffive)hada16per
centhigherprofitmargingrowththanbrancheswithdecreasedlevelsofemployeeengagement.
(Source:Engagingforsuccess:Enhancingperformancethroughemployeeengagement,UK
GovernmentStudy)
Astudyof64organizationsrevealedthatorganizationswithhighlyengagedemployeesachieve
twicetheannualnetincomeoforganizationswhoseemployeeslagbehindonengagement.
(Source:TheImpactofEmployeeEngagement.Kenexa)
Astudyconductedacross39organizationsindicatesthatorganizationswithhighlyengaged
employeesachieveseventimesgreater5yeartotalshareholderreturn(TSR)thanorganizations
whoseemployeesarelessengaged.(Source:TheImpactofEmployeeEngagement.Kenexa)
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RoleofFrontLineManagers
Incompanieswhoadministeredanemployeeengagementsurvey,27%ofmanagersnever
reviewedtheresultsatall,and52%reviewedtheresultsbuttooknoaction.(Source:AonHewitt
EuropeanManagerSurvey2011.AonHewitt)
CausationStudyLinkageBetweenEngagementandOutcomes
Landmarklongitudinalstudy,using755retailbankemployeesandbusinessunitmetricsforafour
yearperiod,showedengagementhadmoreimpactonbusinessresultsthanviceversa.(Source:
Newinsightsintoanolddebate:Investigatingthetemporalsequenceofcommitmentand
performanceatthebusinessunitlevel)

KevinKruseisaNYTimesbestsellingauthorandkeynotespeaker.Getmoresuccessandtipsfromhis
newsletteratkevinkruse.comandcheckoutkeynotevideoclips.Hisnewbook,EmployeeEngagement
2.0,teachesmanagershowtoturnapatheticgroupsintoemotionallycommittedteams.

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