Why Employee Engagement is So Important
Jack Welch, the famous former CEO and Chairman of GE, cites three key indicators that he uses to measure a company’s overall performance. Employee Engagement is the first of the three, followed by customer satisfaction and cash flow. To quote Welch, “It goes without saying that no company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it.”
Engaged employees are involved, enthusiastic, and committed. Those are the adjectives that the Gallup organization uses to categorize 31.5% of the workforce in the US in their 2015 update. The numbers have improved only slightly since the 2008 recession, and the levels of unengaged or actively disengaged employees remain appallingly high.
Here are the numbers:
Gallup’s 2014 Survey Results:
Source: Gallup Organization
31.5% Engagement – It’s a Problem and an Opportunity
Extensive research by Gallup, The Hay Group, Towers Perrin and others consistently demonstrates both the benefits of engaged employees to businesses worldwide and also the difficulties posed when significant numbers are uninspired or disengaged.
- Lagging productivity
- Increased turnover
- More accidents
- Lower customer satisfaction