Why Best Employers perform better: financial context of engagement.
6.11.2015Company: Amcham
Employee engagement, together with other indicators, plays an important part in financial success of the company. And in all these indicators, Best Employers score very high.
We analyzed 284 global companies and correlated 2010–2012 employee perceptions with 2012 financial performance. We compared bottom quartile engagement companies (half or less of their employees engaged), top quartile engagement companies (7 out of 10 employees engaged) and best employer companies (top quartile engagement companies with top quartile levels of leadership, performance culture and brand scores) against average engagement companies.
The results are compelling. Bottom quartile engagement companies perform worse than average in all financial indicators. Companies with top quartile engagement levels outperform average companies by 4 percentage points on sales growth and TSR (Total shareholder return) and 2 percentage points on operating margin. The best employer organizations outperform top quartile engagement companies by 2 points on each of the financial indicators.
To illustrate the results: for three separate $1 billion companies with different engagement level, the top quartile engagement company is driving $20 million more in profits than average, and the best employer company drives twice as much!
Author: Tereza Jungwirthová, Consultant, Aon Hewitt
