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What Employee Engagement Means for Business Outcomes

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What Employee Engagement Means for Business Outcomes

  1. 1. Employee Engagement What Soft Issues Mean for Hard Numbers Abhishek Mittal Consultant Gallup Consulting
  2. 2. Background  Employee Engagement is a leading indicator of key business outcomes like sales, profits, attrition, productivity etc.  The analysis presented here is based on a company based in the Middle East region, but such analysis has been done elsewhere as well  Total employee base >7000  Financial data from its over 50 business centers was analyzed along with Employee Engagement data  Workgroup level employee engagement measured using a proprietary metric. The metric has been globally researched, validated and found to be reliable across industries  The employee engagement metric is computed on a scale of 1 to 5
  3. 3. Impact on Change in Sales 153.28 100 80.6 Employee Engagement Company Average Employee Engagement Increases Significantly Decreases Significantly Change in Sales A significant increase/decrease is defined as a change of 0.2 on a scale of 1-5 for the employee engagement metric
  4. 4. Impact on Change in Gross Profit Margins 0.70% 0.15% -0.34% Employee Engagement Company Average Employee Engagement Increases Significantly Decreases Significantly Change in GP% A significant increase/decrease is defined as a change of 0.2 on a scale of 1-5 for the employee engagement metric
  5. 5. Impact on Change in Operating Profit Margins 1.77% 0.72% 0.06% Employee Engagement Company Average Employee Engagement Increases Significantly Decreases Significantly Change in OP% A significant increase/decrease is defined as a change of 0.2 on a scale of 1-5 for the employee engagement metric

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