Having engaged employees DOES boost the bottom line for a business, according to latest research.
Hay Group’s new research – a paper named Engaging hearts and minds: Preparing for a changing world – assesses the tangible benefits of a fully engaged workforce.
And it suggests that companies with high colleague engagement scores have more than FOUR times the revenue streams of low-scoring companies.
Ben Hubbard, the group’s European research division director, said there was a “casual link” between engagement and the bottom line.
He told HR Magazine: “Clients that improve their engagement enablement see an improvement in performance over subsequent years.”
However Hubbard was keen to stress that engaged staff still require the right tools to succeed fully – so they must be “enabled” too.
He added: “That organisations care about their people has to be a good thing. But it needs to be genuine and have integrity.
“It’s also about how businesses support people and channel their engagement productively.
“I see it that the glass is more than half full in terms of HR wanting people to perform – it’s naturally what people do.
“But sometimes it’s actually the organisation itself that’s holding them back from performing at their best.”
Interestingly, the report suggests that those deemed to have high levels of engagement and enablement were “50 per cent more likely to exceed performance targets”.
Of course businesses are becoming increasingly aware of the true value of engagement with US firms set to invest $720m on engagement this year – with this figure anticipated to double in the coming years.
And should engagement be restricted only to the workplace?
Workforce consultancy expert Susan LaMotte certainly thinks not, highlighting that what happens outside the workplace is as important for engagement as what happens in working time.