Feature Article - January/February 2011

Ready, Set, Engage!

Employee Engagement Delivers Bottom-Line Results

By Rick Dandes


In today's fast-paced and often turbulent business environment, having a high-performance, engaged workforce is critical to a company's bottom-line profitability because it drives higher quality, customer satisfaction and revenue growth.

Study after study by human resource, sales and marketing experts shows that the benefits of engaged employees to corporate performance and to the bottom line are so pervasive that it's almost impossible to deny the business imperative of actively incorporating engagement initiatives, such as incentives (both cash and non-cash), into corporate operating plans.

One recent research study, for example, by The Gallup Organization found that engaged workgroups are:

  • 18 percent more productive.
  • 16 percent more profitable.
  • Generating 18 percent higher earnings.
  • 37 percent less prone to absenteeism.
  • 12 percent better at engaging customers.
  • Creating 2.6 times higher growth rates.
  • Reducing quality defects by 60 percent.
  • 51 percent less likely to be a source of employee theft.
  • 62 percent less likely to be involved in on-the-job accidents.
  • 51 percent less likely to leave (in low-turnover companies), and 31 percent less likely to leave (in high-turnover companies).

"No doubt about it, engaging employees and customers is a very smart investment that returns significant return on investment," said Michelle Smith, vice president, Business Development, O. C. Tanner, an international business consulting and marketing group with world headquarters in Salt Lake City, Utah.