Engagement by the numbers

Jack Welch believes the best picture of a company’s well-being comes from, employee engagement, customer satisfaction, and cash flow. By the way, cash flow comes third. Jack believes that employee engagement is perhaps the most telling indicator of competitive advantage.

Here are some statistics from ISR, a Chicago firm that studied engagement of 664,000 employees from 71 companies around the world.

  • 52% difference in one-year performance improvement in operating income between companies with highly engaged employees compared to companies with low engagement.
  • Operating income was up 19.2 percent in high engaged companies versus a decline of 32.7 percent in low engaged companies.
  •  There was a 13.2 percent improvement in net income growth over a one-year period for companies with high employee engagement.
  • There was a 27.8 percent improvement in EPS growth in companies with high engagement.
  • Read more about the research in the October 10th. Chief Executive.

Get Engaged:

  1. What are your engagement numbers?
  2. Do you stand “Tall” like Howard Schultz of Starbucks who was more interested in creating the right work environment for employees than the price of coffee.

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