A considerable amount of research has indicated that higher levels of engagement produce a range of organizational benefits, for example:
- higher productivity/performance – engaged employees perform 20 per cent better than the average (Conference Board, 2006);
- lower staff turnover – engaged employees are 87 per cent less likely to leave (Corporate Leadership Council, 2004);
- better attendance – engaged employees have lower sick leave (CIPD 2007);
- improved safety (Vance, 2006).
Gallup (2006a) examined 23,910 business units and compared top quartile and bottom quartile financial performance with engagement scores. They found that:
- Those with engagement scores in the bottom quartile averaged 31–51 per cent more employee turnover, 51 per cent more inventory shrinkage, and 62 per cent more accidents.
- Those with engagement scores in the top quartile averaged 12 per cent higher customer advocacy, 18 per cent higher productivity, and 12 per cent higher profitability.
A study by Gallup (2006b) of earnings per share (EPS) growth of 89 organizations found that the EPS growth rate of organizations with engagement scores in the top quartile was 2.6 times that of organizations with belowaverage engagement scores.