3 Reasons to Monitor Employee Engagement

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As the topic of company culture takes center stage in today’s business climate, many employers are taking great strides to promote employee satisfaction, assimilation, and seamless interaction within their organizations.

Based on countless studies which have examined the roles of captivated workers, employers are beginning to grasp the ways in which employee engagement truly benefits the organization as a whole. In essence, employers can no longer ignore the overwhelming research: employee engagement is directly correlated with ROI.

What does this mean for employers seeking organizational growth? While investing in employee engagement sounds nice, it also serves a purpose. When it comes down to it, employee engagement affects the bottom line. Here are a few ways in which this is the case:


According to the 2006 Tower Perrins’ global survey, engagement increases operational income by over 19% Furthermore, those with “highly aligned cultures and…innovation strategies” witness more than 15% higher profit growth than those without. In other words, high employee engagement equals higher profit. For employers, it can’t get much simpler than that!

Reese Haydon of DecisionWise, LLC notes, organizations with lower employee engagement have twice the turnover (www.decision-wise.com). Indirectly, this also affects a business’s ROI, as turnover remains costly. Each new hire includes recruiting, hiring, training, and lost time that many organizations either cannot afford or would rather not spend. In most cases, decreasing turnover is the most efficient way to cut costs.


Stated simply, employees talk. They have the ability to uphold your organization’s reputation or lower it, depending on their engagement with its workplace. As KPMG notes, only 13% of disengaged workers would “recommend their company’s goods or services”. This is compared with 78% of their engaged counterparts. Therefore, disengaged employees are costing such organizations valuable business and, in turn, profit.

In order to increase revenue, businesses must tap into this workforce and invest in its engagement.

How are you investing in the engagement of your workforce today?

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1 Comment

  1. Bob Gately says:

    Lauren, if all employees, including managers and executives, are hired for their penchant to become successful and engaged, then we would not need to monitor employee engagement.

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