Does Employee Engagement Really Matter?

We hear this question from clients quite often…is Employee Engagement really that important? Or is it just the latest corporate buzz word?

Since Kahn first introduced the concept of Employee Engagement in 1990, it has received considerable attention as an important driver of positive organizational outcomes. Research in this area has provided significant support for the fact that Employee Engagement does matter. In fact, empirical evidence shows that Employee Engagement in organizations is positively correlated with all the following:

• Return on assets

• Customer satisfaction and loyalty

• Customer profitability

• Job performance

• Firm profitability

• Physical well-being

• Intent to stay in the organization

• Shareholder value

• Billable hours

So, yes!!! Employee Engagement really does matter, as it positively impacts a wide variety of other organizational outcomes.

Given the fact that Employee Engagement does matter, the most important next questions are:

• How do we effectively measure Employee Engagement?

• How can we improve Employee Engagement in our organization?

We have talked to many organizations who are genuinely trying to improve Employee Engagement, only to find out that the survey instrument they have been using measures something completely different (employee satisfaction, organizational commitment, or something else). While perhaps still valuable, Employee Engagement is a separate construct that should be treated and measured as such.

In addition, we find that most organizations do little analysis beyond simply reporting the overall or segmented results, ignoring the most important drivers of Employee Engagement. Using statistical modeling methods, we can determine those variables that have the greatest impact on Employee Engagement in your organization. This allows leadership to focus on improvement with laser-like accuracy, using resources in the most effective way possible.

Contact us now to learn more about how Vortex can help your organization improve organizational outcomes by accurately measuring Employee Engagement and crafting specific plans for improvement.