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Study Finds Engaged Employees Help Boost Bottom Line

WASHINGTON, D.C.—June 29, 2006—Employee research and consultancy ISR has announced results of a global employee engagement study, which reportedly show a dramatic difference in bottom-line results in companies with highly engaged employees when compared to companies whose employees had low engagement scores.

According to the announcement, the study, gathered from surveys of more 664,000 employees worldwide, analyzed three traditional financial performance measures over a 12-month period: operating income, net income, and earnings per share (EPS). Most dramatic among its findings was the almost 52% gap in the one-year performance improvement in operating income between companies with highly engaged employees versus companies whose employees have low engagement scores. High-engagement companies improved 19.2% and low-engagement companies declined 32.7% in operating income over the study period, the announcement stated.

Other findings reportedly include a 13.2% improvement in net income growth over a one-year period for companies with high employee engagement, and a 3.8% decline in net income for those with low employee engagement. High-employee-engagement companies also demonstrated a 27.8% improvement in EPS growth, versus an 11.2% decline for low-employee-engagement companies.

“Our research continues to show that a well-substantiated relationship exists between employee engagement—the extent to which employees are committed, believe in the values of the company, feel pride in working for their employer, and are motivated to go the extra mile—and business results,” said ISR global research director, Patrick Kulesa, in the announcement. “This data reaffirms the remarkable ability of an engaged workforce to impact a company’s bottom line.”

www.isrinsight.com

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