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NAILING THE EVIDENCE
TANITH DODGE
HR Director
Marks & Spencer plc
Our Aim
Why is it Important?



70% 6% 20% 30%
 Percentage of   The UK has 6%     Percentage          Percentage of
  employees      lower average      below G7            employees
  who do not      engagement       productivity           actively
   trust their     levels than        levels             engaged
   managers        other large      (International
                                    comparison of
                   economies
                                   productivity gap)
                 (Kennexa, 2011)
Imagine if 30% of lights didn’t work…
…OR 30% OF COMPUTERS!
Imagine 30% of lights didn’t work…
Organisational Case Study Submissions
Research Houses and other Organisations
Linkages to Employee Engagement
Organisations with higher engagement level
  Outperformed the total stock market index
  Posted total shareholder returns 22% higher
  than average
  Twice the annual net income




4.2 times more likely to deliver above average profit



15% of a store’s year on year growth can be explained by
the level of engagement



12% higher growth in sales
Companies with engagement scores in the top
quartile averaged 12% higher customer
advocacy
84% of ‘Worlds Most Admired’ Companies
stated their efforts to engage employees had
strengthened customer relationships




Higher engagement levels have lower patient mortality rates



7 percentage points difference in customer service scores
between top 10% and bottom 10%


Contracts delivered by engaged employees showed higher
customer loyalty
Engagement scores in the top quartile
averaged 18% higher productivity
71% of companies with above average
employee engagement performed above their
sector average




Engaged staff able to talk to additional 800 customers
per year



Higher sales and lower absence
59% of engaged employees say work brings
out their most creative ideas – only 3% of
disengaged employees agree
Engaged employees are more likely to search
out new methods, techniques and transform
innovative ideas




£26m of improvement opportunities
Engaged employees in the UK take an average
of 2.7 sick days per year, while disengaged
staff take 6.2
Sickness absence costs the UK economy
£17 billion per year




Absence levels reduced by 26%




Higher engagement levels have lower absence levels
High levels of engagement are positively
associated with wellbeing




Strong correlation between engagement and wellbeing
Bottom 10% has 2x voluntary turnover




Bottom 10% ranked by employee engagement had almost
twice the voluntary turnover
Engaged Employees:


          Perform better, work
         harder, longer, smarter


  Work more vigorously, offer innovative
              suggestions
Employee Engagement:
The Evidence
       CEOs call on UK to deliver   A high-level task force of some of the UK’s most
                                    recognisable organisations is calling for every
                  GDP growth        leader and manager across the economy to
       by better engaging           play their part in tackling the UK’s employee
       employees at work.
                                    engagement deficit.



                                        Analysis of the evidence shows that:
                                        Only around a third of UK employees say they are
                                        actively engaged at work.

                                        20 million workers are not delivering their full
                                        capability or realising their potential at work.

                                                       of people said they have more to
                                                       offer in skills and talent than they
                                                       are currently being asked to
                                                       demonstrate at work.

                                        UK productivity was 20% lower than the rest of the
                                        G7 in 2011.0
Employee Engagement:
 Statistics and Case Studies



PROFIT                                                 CUSTOMER
Companies with                                         SATISFACTION
engagement
scores in the top                                      Companies with top
25% had twice the                                      quartile engagement
annual net profit.                                     scores average
                     REVENUE                           12% higher customer
                     GROWTH                            advocacy.
                     Organisations in the top
                     quartile of engagement scores
                     demonstrated revenue growth
                     2.5 times greater than those in
                     the bottom quartile.
Employee Engagement:
Statistics and Case Studies



    PRODUCTIVITY
    Organisations in the top
    quartile of employee
    engagement scores had
    18% higher productivity.




                               INNOVATION                  EMPLOYEE TURNOVER
                               59% of engaged              Companies with high levels of
                               employees said that their   engagement show turnover rate
                               job brings out their most   40% lower than companies with low
                               creative ideas.             levels of engagement.
Employee Engagement:
Statistics and Case Studies
           EFFICIENCY
          An insurance company found that teams with
          higher engagement had 35% less down time
          between calls – equivalent to one ‘free of charge’
          employee to every eight employees.




                   HEALTH & SAFETY
                  Organisations with engagement in the bottom quartile
                  average 62% more accidents than those in the top.
Engage for Success

www.engageforsuccess.org


@engage4success

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Employee engagement the evidence

  • 1. NAILING THE EVIDENCE TANITH DODGE HR Director Marks & Spencer plc
  • 3. Why is it Important? 70% 6% 20% 30% Percentage of The UK has 6% Percentage Percentage of employees lower average below G7 employees who do not engagement productivity actively trust their levels than levels engaged managers other large (International comparison of economies productivity gap) (Kennexa, 2011)
  • 4. Imagine if 30% of lights didn’t work…
  • 5. …OR 30% OF COMPUTERS! Imagine 30% of lights didn’t work…
  • 7. Research Houses and other Organisations
  • 8. Linkages to Employee Engagement
  • 9. Organisations with higher engagement level Outperformed the total stock market index Posted total shareholder returns 22% higher than average Twice the annual net income 4.2 times more likely to deliver above average profit 15% of a store’s year on year growth can be explained by the level of engagement 12% higher growth in sales
  • 10. Companies with engagement scores in the top quartile averaged 12% higher customer advocacy 84% of ‘Worlds Most Admired’ Companies stated their efforts to engage employees had strengthened customer relationships Higher engagement levels have lower patient mortality rates 7 percentage points difference in customer service scores between top 10% and bottom 10% Contracts delivered by engaged employees showed higher customer loyalty
  • 11. Engagement scores in the top quartile averaged 18% higher productivity 71% of companies with above average employee engagement performed above their sector average Engaged staff able to talk to additional 800 customers per year Higher sales and lower absence
  • 12. 59% of engaged employees say work brings out their most creative ideas – only 3% of disengaged employees agree Engaged employees are more likely to search out new methods, techniques and transform innovative ideas £26m of improvement opportunities
  • 13. Engaged employees in the UK take an average of 2.7 sick days per year, while disengaged staff take 6.2 Sickness absence costs the UK economy £17 billion per year Absence levels reduced by 26% Higher engagement levels have lower absence levels
  • 14. High levels of engagement are positively associated with wellbeing Strong correlation between engagement and wellbeing
  • 15. Bottom 10% has 2x voluntary turnover Bottom 10% ranked by employee engagement had almost twice the voluntary turnover
  • 16. Engaged Employees: Perform better, work harder, longer, smarter Work more vigorously, offer innovative suggestions
  • 17. Employee Engagement: The Evidence CEOs call on UK to deliver A high-level task force of some of the UK’s most recognisable organisations is calling for every GDP growth leader and manager across the economy to by better engaging play their part in tackling the UK’s employee employees at work. engagement deficit. Analysis of the evidence shows that: Only around a third of UK employees say they are actively engaged at work. 20 million workers are not delivering their full capability or realising their potential at work. of people said they have more to offer in skills and talent than they are currently being asked to demonstrate at work. UK productivity was 20% lower than the rest of the G7 in 2011.0
  • 18. Employee Engagement: Statistics and Case Studies PROFIT CUSTOMER Companies with SATISFACTION engagement scores in the top Companies with top 25% had twice the quartile engagement annual net profit. scores average REVENUE 12% higher customer GROWTH advocacy. Organisations in the top quartile of engagement scores demonstrated revenue growth 2.5 times greater than those in the bottom quartile.
  • 19. Employee Engagement: Statistics and Case Studies PRODUCTIVITY Organisations in the top quartile of employee engagement scores had 18% higher productivity. INNOVATION EMPLOYEE TURNOVER 59% of engaged Companies with high levels of employees said that their engagement show turnover rate job brings out their most 40% lower than companies with low creative ideas. levels of engagement.
  • 20. Employee Engagement: Statistics and Case Studies EFFICIENCY An insurance company found that teams with higher engagement had 35% less down time between calls – equivalent to one ‘free of charge’ employee to every eight employees. HEALTH & SAFETY Organisations with engagement in the bottom quartile average 62% more accidents than those in the top.