How employee engagement is key to profitable growth

New research finds powerful connection between training, employee engagement, employee performance and organisational success and identifies best practices for employee retention, leadership, customer satisfaction and profitable growth

The report, ‘The Engagement/Performance Equation,’ authored by Mollie Lombardi, Research Director, Human Capital Management, at Aberdeen Group, describes the powerful connection between employee engagement and employee performance, and how the connection results in organisational success

 “Skilled managers are critical links in making employees feel more engaged, which can lead to better performance and greater commitment to the job and the organisation.” said Lombardi

Aberdeen finds that top performing organisations that provide leaders with the skills, tools and training to build engagement and foster performance are not only improving their ability to hire top candidates and building a stronger leadership bench, but are also returning three and a half times greater year-over-year improvement in both customer retention and revenue.

The report illustrates how companies using the right tools, policies, and processes to engage and align workers with organisational priorities, can optimise performance at an individual and organisational level. It also examines the role leaders play, and the skills they need, to power heightened levels of employee engagement and performance.

“Development for leaders and managers is a key component of employee engagement and employee performance,” said Lombardi. “Companies that want optimal performance need to consider how they are supporting these critical employees with the tools and training required for setting and managing the right goals that will deliver results.”

The study analysed 438 organisations in May and June 2011, examining strategies, tools and processes designed to improve engagement and performance, leading to recommendations on how organisations can use them to improve employee retention, leadership bench strength, customer satisfaction and profitable growth.

Key findings include of the Skillsoft sponsored report include:

• 43% Best-in-Class companies have a formal engagement strategy, while just 14 percent of Laggards do.
• Best-in-Class companies are 81 percent more likely to provide managers with training and tools on strategies for engaging employees and 24 percent more likely to train managers and supervisors to deliver effective performance reviews than all others.
• Key management skills that are taught to drive high levels of engagement and alignment include leadership, communication, critical thinking and people development skills such as giving and receiving feedback.

“The Aberdeen report highlights the importance of training all managers and the critical role that plays in keeping employees engaged in their careers,” says John Ambrose, senior vice president, strategy, corporate development and emerging business, SkillSoft. 

“Skilled managers are critical links in making employees feel more engaged, which can lead to better performance and greater commitment to the job and the organisation.”