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2010.09.13

Engagement Drives Earnings Per Share (EPS). "Right, prove it to me."

Engagement is a good thing. Most executives understand that. But how far do you really need to go in order to do the right thing and create an enaged work force? I mean, should it always be give, give, give?

There has been meaningful debate on the subject of how far a company should go to "make" employees happy. In fact, there have been some very poignant rants about how engagement works both ways. In other words, employees need to do their part and not sit around waiting for their employer to engage them. David Zinger, well known engagement guru writes about employee contributions to engagement here. You can follow him at @DavidZinger.

On the other hand, every corporate leader should know financial facts about engagement. And they are facts.

In 2005, Gallup reviewed data from 332 organizations. They used the scientific process and statistical analysis to identify correlations and  develop a conclusion. For the skeptics and analytical types, you can review the key data and findings in the Gallup Management Journal article by clicking on the following icon.

Gallup

The results.... drum roll please...

Higher levels of employee engagement correlate with higher earnings per share. Fact.

 

 

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