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By: Jeanne Hines, SPHR

“…engaged organizations have 3.9 times the earnings per share (EPS) growth rate compared to organizations with lower engagement in their same industry”

Theories of motivation have existed since at least the 1920’s, and the topic continues to be studied.  Instead of motivation, though, we frequently hear about “engagement.”   Regardless of your preferred theory or your propensity to think of humans as either naturally lazy or naturally productive, we know that motivated people get more done and strive for improvement.  Gallup has done extensive research into the topic and has found that world-class organizations have a ratio of engaged to actively disengaged employees at about 9.5 to 1.  In average organizations, the opposite is true.  The research indicates the ratio of actively disengaged employees to engaged employees is nearly 2 to 1. 

One bad apple spoils the whole bunch?  Gallup estimated that actively disengaged employees erode an organization’s bottom line while breaking the spirits of their colleagues, costing the U. S. workforce an estimated $300 billion in lost productivity.  Of important note, Gallup’s research shows that engaged organizations have 3.9 times the earnings per share (EPS) growth rate compared to organizations with lower engagement in their same industry. 

Solid business management that creates a culture of achievement will best enable your workforce to thrive.  One of the tools in creating such a culture is a well-crafted performance management system.   We invite you to attend our webinar on performance management on Wednesday, August 1st at noon to learn more about how to find and keep the best.  Information and registration is available here.

Source:  “Employee Engagement,” Gallup, accessed June 22, 2012, http://www.gallup.com/consulting/52/employee-engagement.aspx
Posted 7:55 AM  View Comments

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1 Comments

David Young @ biometric time clocks said...
Engaged employees are happier. Theres nothing worse than being bored with nothing to do.
WEDNESDAY, JUNE 13 2012 3:10 PM
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