The Link Between Employee Engagement and Revenue Growth

from the Turning Good People Into Top Talent blog series
By Bob Moore, CMC, Managing Principal, The Talent Management Institute

employee engagement revenue growth

Fully engaged workers are those who are most likely to be high performers, thus helping their organizations grow.  Most are committed to and have passion for their jobs. Several studies have shown that companies with engaged employees are financially better off than those whose staff are emotionally disconnected.

A study conducted by Aon Hewitt of more than nine million employees at over 1,000 organizations in 164 countries, found the following percentage of workers considered “engaged” by region:

  1. Latin America: 71%
  2. Africa/Middle East: 67%
  3. North America:  66%
  4. Asia Pacific:  64%
  5. Europe:  57%

According to the Aon Hewitt report, there are consistent, statistically significant relationships between higher levels of employee engagement and financial performance. A five percent increase in employee engagement is linked to a three percent rise in an organization’s revenue growth.

Research done by PwC revealed employees who are committed to their companies put in 57 percent more effort in their work and are 87 percent less likely to resign, compared to those who are emotionally disconnected.

Aon Hewitt’s study showed that the top drivers for employee engagement in the region are career opportunities, employee value proposition and recognition programs. Dr. Ken Oehler, Aon Hewitt’s global engagement practice leader said,  “Employees who are engaged, but not empowered, are more likely to be frustrated, burned out and become disengaged, which puts organizations at risk of having suboptimal productivity and higher-than-average employee turnover.”

These findings are consistent with Gallup’s research that management effectiveness is a primary determinant of the levels of employee satisfaction, engagement and retention. This means there is a significant ROI from providing team leader and management training and development.

Consider the cost-effective leadership development resources available at the Talent Management Institute.

Click here to view the Leadership Courses offered by the Talent Management Institute.


Bob Moore, CMC
Managing Principal

Previous Post

Warning:  The Millennials are Taking Control of the Workplace

Next Post

It is Time to Correct the “Bad Management” Issue

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.