When I ask people this question, the most common response is '...leadership is about getting better results.' If so, the next question is, how do leaders get better results?
So much time, effort and financial commitment is spent on leadership development. But to what end? What measures are used to calculate the economic benefits?
The rewards of engagement
Research has shown companies that attain high levels of employee engagement achieve higher productivity, customer satisfaction and superior financial results:
- Hewitt Associates, a global management consultancy, found that companies with double digit growth exceed average employee engagement levels of single digit growth companies by over 20%.
- Towers Perrin, a global leader in employee research, conducted a study involving 360 000 employees in 41 companies across the 10 largest global economies. They found that over a three-year period high engagement companies improved their net profit margin by 2.06 percentage points, while low engagement companies experienced a decrease in their net profit margin of 1.4 percentage points.
- The Corporate Executive Board surveyed 50 000 employees in 59 companies worldwide and found that employees with low engagement were four times more likely to leave their jobs compared to high engagement employees.
How to measure engagement In working with organisation, the following seven factors have proved to reliably measure employee engagement:
- Value and Meaning - the extent to which employees feel what they do is meaning and adds value to their clients.
- Trust - the level to which leaders can be trusted - their credibility and reliability
- Learn and grow - the degree to which employees feel they have opportunity to learn and advance
- Empowerment - the ability employees have to use their strengths and make decisions about how to do their jobs.
- Recognition - the level to which employees feel valued and appreciated.
- Teamwork -the extent to which employees collaborate and support each other
- Stay and strive - the time employees expect to stay with the organisation.
We offer a free opportunity to assess the level of employee engagement in your business.
Email Bernard Desmidt at firstname.lastname@example.org to discuss and give yourself every opportunity to bring about lasting and improved business results.