A recent study by the Temkin Group has revealed that employee engagement is on the rise, which is good news for employers. “Engaged employees are twice as likely [as disengaged employees] to do something good for the company, three times as likely to make recommendations for improvements, and more than six times as likely to recommend that a friend or relative apply for a job at the company,” says Aimee Lucas, Customer Experience Analyst at the Temkin Group and co-author of the study.
Compared to their disengaged co-workers, highly engaged employees also tend to work harder, be more productive, work late when needed, take less sick time, and help a co-worker without being asked to do so, the study revealed.
Employers that are leaders in financial performance and customer experience have more engaged workforces, according to the study. For example, at companies whose financial performance is significantly better than that of their peers, 75 percent of employees are highly or moderately engaged, compared to 47 percent at underperforming companies, Lucas says. The level of customer experience delivered also had an impact on the level of engagement of employees. Seventy five percent of employees are highly or moderately engaged at forward thinking, customer orientates companies, compared to 34 percent at lagging companies.
Engaged employees create a more positive customer experience, which, in turn, increases customer loyalty and makes customers more likely to buy more product and recommend the company’s product to others, Lucas explains. Combined with lower turnover rates among highly engaged workforces, that customer loyalty helps drive financial performance, she adds.
Companies that do not recognize and address this virtuous cycle run the risk of watching talent go to competitors. “Employees who want to be engaged and give that commitment may end up leaving,” Lucas says.
Five I’s Of Employee Engagement
The study identified five indicators that companies can use to increase engagement >>>