The April 2002 edition of the Journal of Applied Psychology published research that proved that a more engaged employee is also a more productive employee. The research also proved that a more engaged employee is also a more profitable employee, a more customer-focused employee, a safer employee, and an employee who is more likely to withstand temptations to jump ship.

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The Gallup Organisation’s research on employee engagement in the UK finds that approximately:

19% of employees are engaged (loyal, productive

and find work satisfying),

61% are not engaged (not psychologically

committed and may leave if the opportunity arises)

20% are actively disengaged or disenchanted with

their workplaces.

The study suggests that disengaged employees cost the UK economy up to £38.9 billion per year; they miss more days works per year than others; are less likely to recommend their companies’ products or services and are ten times more likely to leave their workplaces than more engaged colleagues.

Gallup suggests that poor management is by far the primary cause of disengagement and good management practice is needed to change the situation.

2005

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UK workers are some of the least engaged and emotionally attached to their companies in the world, according to a study.

The survey of 160,000 workers was also worrying in suggesting British workers are the most likely, along with those in France and Singapore, to want to move jobs.

The UK ranked joint seventh for employee engagement, with significantly lower levels than the US and Brazil, where engagement levels were highest.

Companies with low levels of engagement saw net profit fall by 1.38% and operating margin fall by 2.01% over a 36-month period.

In firms with above average levels of engagement profits rose by 2.06% and operating margin rose by 3.74% over the same period.

“The worrying thing for UK companies is that this indifference can lead to a reduction in profits," said the survey author.

"Leaders and managers can make a difference by ensuring that all employees understand the contribution they make to the success of an organisation.”

2006

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A study in 2004 by The Forum for People Performance Management and Measurement at Northwestern University in the US shows that there is a direct link between employee engagement and satisfaction and company financial performance. The link is evident even where employees do not interact directly with customers.

One of the key findings from this study concludes that companies with engaged employees have customers who use their products more.

"It is an organization's employees who influence the behavior and attitudes of customers, and it is customers who drive an organization's profitablity through the purchase and use of its products."

Studies

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