Fewer engaged employees add up to lower revenue and profits, according to a recent global survey by human resources firm Towers Perrin.
The study, which surveyed nearly 90,000 workers worldwide, found that companies with the greatest number of engaged employees recorded an average 19% increase in operating income and a 28% year-over-year increase in earnings per share. In contrast, companies with the lowest percentage of engaged employees showed a 33% year-to-year decline in operating income and a 11% drop in earnings per share.
Despite a thriving economy and record unemployment, only 23% of Canadian employees surveyed felt they were more than just a cog in the wheel at their workplace. The survey found that of the 5,000 Canadians surveyed, only two-thirds of employees felt partially engaged at work.
Almost a third of those surveyed in Canada said that they were partially to fully disengaged. That finding suggests that senior management is not doing enough to support and retain their staff in a tight labour market.
Improving employee engagement at work can not only help increase a company's bottom line, but it can also reduce employee turnover. Of the 23% of Canadian employees that said they were fully engaged at their work, more than half said they planned to stay with their employer. Overall, only a third of employees surveyed said they were not planning to change employers.