Your guide to learning why employee engagement is crucial to your organization's strategic objectives.
Does engagement drive profitability?
Per a 1998 Harvard study, an employee’s behavior is determined by their attitude about the job and their company. In other words, how compelling is it to work at that company. The employee’s behavior then determines how long they will stay at a job, the quality of service and helpfulness they will give to customers, and the quality and value of the products they produce. That overall product and service quality determines the impression a customer receives. How compelling is it to shop at your company?
Customer impressions determine if they will purchase from you again and tell others to do the same. The number of customers and the number of times they purchase from you drive your revenue growth. How compelling is it to invest in your company? Engaged employees also create operating efficiencies that reduce costs, continuing to drive profitability!
And does it work in the real world?
McBassi & Co. created the Good Company Index in 2012 to track the stock performance of real companies exhibiting great engagement. This index tracks the performance of approximately 45 Good Companies versus the S&P 500 over the same time. These companies include several well-known companies such as Apple, American Express, Clorox, Colgate-Palmolive, Costco, Delta Airlines, Ford, Google, GE, Hershey, Intel, Nike, Microsoft, and others.
After nearly five years of tracking, the Good Companies have outperformed the S&P 500 by 25 percentage points, proving that engagement definitely works in the real word. To learn more about the Good Company click here.