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The ROI of Employee Engagement

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The ROI of Employee Engagement

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Employee engagement may seem like a soft concept, but the fact is, an engaged team is more productive, more profitable, and easier to manage. This document gathers a variety of stats that illustrate the ROI of improved employee engagement

Employee engagement may seem like a soft concept, but the fact is, an engaged team is more productive, more profitable, and easier to manage. This document gathers a variety of stats that illustrate the ROI of improved employee engagement

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The ROI of Employee Engagement

  1. 1. Engaged organizations also show improved employee retention, decreases in absenteeism, better quality of work and increased productivity. The net effect of improved employee engagement? Double-digit increases in sales and profitability. As your workforce becomes highly engaged and satisfied, results will start to show up in the top line: A highly-engaged workforce improves sales by 20%, leading to 21% higher profits (Gallup). 65% +21% “An engaged organization is easier to run,” says Engagement Multiplier founder and CEO, Stefan Wissenbach. A highly engaged workforce increases profit by Better performing companies also have highly engaged employees. According to research by The Temkin Group, 82% of employees at companies with strong financial results are “highly” or “moderately” engaged. Engaged employees are 4.6 times more likely to feel empowered to perform their best work (Salesforce). 4.6X Engaged employees are So, if engaged employees improve revenue and profit, how much are disengaged employees costing you? The numbers can be staggering. Disengaged employees have a 37% higher rate of absenteeism and are 18% less productive...leading to 15% lower profitability. (Gallup). Gallup estimates that disengaged employees are costing organizations $3,400 for every $10,000 they make in salary. In total, The Engagement Institute estimates that the cost in the US of disengaged employees is between $450 to $550 billion. $17K A disengaged employee costs The ROI of Employee Engagement more empowered to perform their best work per year based on a $50,000 salary

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