Do Employers Benefit From Actively Engaging Their Employees?

Originally published September 27, 2010-

I read an interesting article this week from Inc. Magazine about research done on employee involvement. The study of 900 organizations found that those which had high levels of engagement with their employees not only outperformed the stock market, but also posted shareholder returns 19 percent higher than average in 2009.

The study defined active engagement as involvement in “topics such as employee morale, confidence in the organization, career opportunities, rewards and recognition programs and trust in leadership.” While some companies believe difficult economic conditions force them to pay less attention to these areas as they try to survive, the research indicates these behaviors are counterproductive.

The study found “Companies with disinterested employees (40 percent or less engagement) had a total shareholder return that was 44 percent lower than average.” Further, Florida State University management professor Bill Anthony stated, “Those companies who have had massive layoffs or haven’t really invested in their employees are not really poised for a rebound when things get better.”

Employee involvement is one important way to actively engage your employees. At CALMC, we have seen increased employee involvement increase morale, create higher loyalty to the organization, and improve quality and profitability. As Professor Anthony notes, the time to start is now.

We can help you get started. Contact CALMC to learn how your organization can increase levels of employee involvement.

To read the entire article, go to http://tinyurl.com/396x89r

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About CALMC Blog

Columbus Area Labor-Management Committee is a not-for-profit organization dedicated to involving employers and employees to preserve jobs, resolve workplace issues, and promote labor-management cooperation. Visit our website at http://calmc.org
This entry was posted in Employee Involvement, Labor-Management Cooperation. Bookmark the permalink.

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