By: JLL Research
Engaged workers are defined by the consistent discretionary effort they bring to their work practice; they “go the extra mile.” Their own sense of personal success is tied to the business goals, and they develop an emotional connection to the organization. This connection makes them more effective at their job, and they are more likely to develop innovative practices that lead to competitive advantages.
Developing an engaged workforce makes financial sense. One study found that compared with their competition, organizations with an average of 9.3 engaged employees in every actively disengaged employee experienced 147 percent higher earnings per share. Figure 2 shows that higher levels of employee engagement not only improve the bottom line through increased customer satisfaction and enhanced productivity, but also, lower those unproductive elements that are a drain on business performance, such as absenteeism or employee turnover.
One study found organizations with an average of 9.3 engaged employees for every actively disengaged employee experienced 147% higher earnings per share compared with their competition.
Departing employees take with them valuable tacit knowledge and organizational memory directly related to business performance. In one study, the cost savings of avoiding each employee replacement was calculated at US$250,000. When you consider how salaries are often the most significant cost to an organization, and how each replacement can cost up to 1.5 times the salary of a position, employee retention is a critical financial advantage.
Paul Cobban, Chief Operating Officer of Technology and Operations at DBS Bank, sees employee engagement as an important tool in changing business behavior. “Since we have been on our journey of improving workspaces, we have seen a dramatic increase in our engagement levels, a lowering in attrition rates, and improvements in the quality of people who want to join DBS—all of which can be very directly translated to our five years of top and bottom line growth.”
To read the full report, visit: http://www.jll.com/research/163/fully-engaged-report