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Talent Engagement The Facts (3)


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All the fact you\'ll need to understand the importance of Talent Engagement

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Talent Engagement The Facts (3)

  1. 1. talent engagement<br />the facts <br />Quantified benefitsidentified in <br />Engaging for Success (2009) <br />by Macleod and Clarke:<br />
  2. 2. Talent Engagement leads to.....<br />Better Financial Performance<br />Improved Customer Care<br />More Sales<br />More Innovation<br />Higher Profit<br />Lower Attrition Rates<br />Less Wastage<br />Less Sick Leave<br />
  3. 3. Impact of Engagement on Financial Performance<br />Based on a 12 month global study involving 664,000 employees from 50 global companies across a range of industry sectors<br />27.8%<br />19.2%<br />13.7%<br />High Engagement<br />Low<br />Engagement<br />-3.8%<br />-11.2%<br />-32.7%<br />12 month EPS<br /> (Earnings per share) <br />growth rate<br />12 month change in operating income<br />12 month <br />net income growth rate<br />
  4. 4. Better Customer Care / Relationships<br />Strong correlation between highly engaged staff and client satisfaction (PWC)<br />70%<br />of engaged employees indicate they have a good understanding of customer needs.<br />17%<br />of non engaged employees say the same.<br />of engaged employees advocate their organisations.<br />67%<br />of the disengaged would advocate their organisations. (Gallup)<br />3%<br />
  5. 5. More Sales<br />higher on sales of banking products than those with low engagement scores. (Nationwide Building Society)<br />14%<br />higher on sales of general insurance.<br />(Nationwide Building Society)<br />34%<br />More Innovation<br />of engaged employees say work brings out their most creative ideas – only 3% of disengaged agree (Gallup)<br />59%<br />
  6. 6. Higher Profit Margins<br />12%<br />higher profitability (Gallup 2006) <br />higher profit margin growth reported by Standard Chartered Bank in 2007 from high level engaged branches compared to low level ones.<br />16%<br />Better Bottom Line Results <br />improvement in operating income in companies with high levels (Tower Perrins—ISR global survey) <br />19.2 %<br />decline in operating income in companies with low levels(Tower Perrins—ISR global survey <br />32.7%<br />increase in profits per employee per year in companies that <br />increase investment in a range of workplace practices <br />that relate to engagement (IES/Work Foundation (2008) <br />£1500<br />
  7. 7. Lower Attrition Rates<br />Better Staff Retention <br />more employee turnover in companies in bottom quartile on engagement. <br />31-51%<br />the amount by which engaged employees are less likely to leave the organisation than the disengaged. <br />87%<br />Estimated cost of replacing each employee often put at equal to the person’s annual salary. (Corporate Leadership Council 2004) <br />
  8. 8. Less Wastage<br />Inventory Shrinkage <br />51%<br />average increase in inventory shrinkage <br />in low scoring companies (Gallup )<br />more accidents in low scoring <br />companies (Gallup)<br />62%<br />
  9. 9. Less Sick Leave<br />the number of sick days engaged employees take on average a year<br />2.7<br />6.2<br />the number of sick days dis-engaged employees take on average a year<br />
  10. 10. What do the facts tell you?<br />