Photo by Benis Arapovic
How employee enthusiasm drives financial outcomes.
More companies are aware that employee engagement enables a better customer experience, which leads to higher overall business performance.
Businesses with highly engaged employees enjoy 23 percent higher profits, accordng to 2025 polling by Gallup. This, of course, goes hand-in-hand with other important developments — higher productivity and reduced employee absenteeism.
How?
The successful strategies:
- Providing competitive compensation and benefits.
- Expressing gratitude to productive employees.
- Providing continuous training programs.
- Transparent communication providing opportunity for employees to provide input and to deal with their concerns.
Employee engagement has become a more prevalent practice since a salient conclusion by the Temkin Group’s “Employee Engagement Benchmark Study, 2013.” (Temkin was merged into Qualtrics in 2018 and became the Qualtrics XM Institute.)
The research showed direct benefits to a company with engaged employees:
- Such workers are more twice as likely to stay late when necessary.
- They’re more inclined to act as good team members.
- They will pitch in even if the task isn’t in their job descriptions.
- They’re three times more likely to offer solutions.
- Such talented workers are more than six times more likely to refer their friends or relatives to apply for a job.
Levels of employee engagement
The research examined the level of employee engagement within different types of organizations. Seventy-five percent of employees in companies with significantly above-average financial performance were moderately or highly engaged, compared with less than half of firms with subpar financial results.
The study showed that 57 percent of U.S. employees were moderately or highly engaged, an increase from 47 percent that Temkin Group found in its 2011 survey.
“It may not show up on any balance sheet, but a highly engaged workforce is one of the most valuable assets that an organization can possess,” Bruce Temkin, Customer Experience Transformist and Managing Partner of Temkin Group stated in a press release.
Additional findings
- Professional services and construction companies had the highest level of employee engagement, while travel and retail firms had the lowest.
- Sixty percent of the workforce at companies with 100 or fewer employees were moderately or highly engaged, compared with only 46 percent at companies with 10,000 or more employees.
- Seventy-five percent of senior executives were moderately or highly engaged, compared with only 46 percent of individual contributors.
- The most engaged employees tended to be older, male, college educated, and African-American.
Conclusion
The study’s findings have continued to make sense. Engaged employees lead to profits and are more polite to your customers. Politeness has a bearing on whether your customers stay or leave.
A sure-fire way to improve employee engagement for profit is to partner with your employees. It’s advantageous to power your brand with employee empowerment.
From the Coach’s Corner, related resource links:
13 Management Tips to Solve Employee Absenteeism — Absenteeism causes migraines for a lot of bosses. Obviously, your company will make healthier profits, if you don’t have an absenteeism problem.
4 Reasons Why New Managers Fail in Human Resources— Best practices guarantee success for new managers. Not to over-simplify, but here are the four solutions that will help new managers succeed.
Management and HR for Higher Performance— Part three: How to grow your small business. In analyzing the growth rates of small businesses – every great entrepreneur has one salient quality – the ability to be an effective manager.
There are two kinds of people: people who like their jobs, and people who don’t work here anymore.
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