Does Employee Engagement Actually Lead to Higher Profits? - Brightwing

Does Employee Engagement Actually Lead to Higher Profits?

04/24/2014

why employee engagement affects your organization

Employee engagement sounds great, but can it really help companies be more profitable? Over the past few years many  employee engagement studies have shown that engaged companies outperform their competition. The Corporate Leadership Council conducted a study that found that companies with a high level of employee engagement grew profits as much as 3X faster than their competitors.

The Human Capital Institute spells out the reason like this:

> Engaged employees have longer tenure

> High employee retention drives customer satisfaction

> Satisfied customers are loyal customers

> Customer retention drives profitability

That said many other factors come into play. For example, employees that are more engaged with their workforce are more innovative, they enjoy coming to work and in the end this results in greater levels of productivity.

Look at how our priorities have shifted just over the past 20 years:

  • In the 1980’s, over 60% of a company’s total worth was based on its tangible assets: equipment, technology, facilities and resources. In a very short period of time the business environment has changed drastically.
  • Currently, the intangible assets of a company comprise 65-85% of its total value. What makes up intangible assets? Your brand, relationships with customers, vendors and partners, ability to innovate, and most importantly, leadership, employee engagement and the talent management practices and culture of the organization.

Employee engagement is no longer an abstract concept, or something that only human resource professionals are concerned with. Talent management strategy is being discussed in board rooms all over the world.

Want to learn more? Contact Brightwing and let us help you focus your organization’s employee engagement strategy.

Author: April Jennings



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