Research Shows that Engagement is Critical to Your Bottom Line

At Brio, we believe that facts and numbers are an essential aspect of success in business. And science shows that enhancing employee engagement drives hard results - ultimately increasing productivity, performance and profit.

The Hard Costs of Disengagement

  • 70% of employees are disengaged (Gallup, 2017)
  • Lost productivity, the top result of disengagement, costs companies around $3,400 for every $10,000 in annual salary per employee (Haydon, 2013)
  •  Turnover, the end result of disengagement, costs companies 48-61% of an employee’s annual salary (Watson Wyatt, 2015)

Let's logic this out. Based on the numbers above, if your company has 50 employees, approximately 35 (70%) are disengaged at work. If the average salary per employee is around $50,000, you lose $17,000/year per employee -- due to lost productivity driven by disengagement. That equates to $595,000 for all 35 disengaged employees. Say about 5 of those 35 employees quit within the same year, turnover will cost you around $25,000.00 per employee, totaling $125,000. Combining the cost of lost productivity with the cost of turnover, disengagement costs your company around $720,000 per year. Worse, companies with low employee engagement scores earn  32.7% lower than companies with highly engaged employees (International Survey Research, 2006).

The good news: employee engagement programs can mitigate disengagement-driven costs and even increase profits by an average of $2400 per employee per year (Wang, 2015).

Employees with high levels of engagement and well-being are:

  • 45% more likely to report high levels of adaptability in the presence of change*
  • 37% more likely to report always recovering "fully" after illness, injury or hardship*
  • 59% less likely to look for a job with a different organization in the next 12 months*
  • 19% more likely to volunteer their time in the past month (*Gallup, 2015)
  • 2.5 times more likely to stay late at work to finish a project (Tempkin Group, 2015)
  • 3 times as likely to do something good for the company that's not expected of them

Highly Engaged Workplaces:

  • Are 57% more effective (**CEB, 2010)
  • Yield 2X higher productivity
  • Have employees who are 87% less likely to leave their company**
  • Experience 37% lower absenteeism (Gallup, 2013)
  • Have 28% lower theft (Gallup, 2013)
  • Report 48% fewer safety incidents (Gallup, 2013)
  • Outperform low-engaged companies by 202% (Dale Carnegie, 2017).
Additionally, organizations that have over 50% employee engagement retain over 80% of their customers (Demand Metric, 2013).

Your ROI: Based on the same numbers as above, if your 35 disengaged employees go through engagement training, that's an increase of $84,000 in profits. Now, being realistic, not every employee is going to convert from disengaged to engaged. Let's say, based on this, nearly half of those 35 employees become engaged as a result of implementing a customized employee engagement program. That saves you nearly $300,000 in lost productivity and yields additional profit earnings at about $42,000, totaling $342,000 in savings and additional profit.

Company Leaders are Critical to Employee Engagement

  • Managers account for a minimum of 70% of the variance in employee engagement scores (Gallup, 2014).
  • Leaders who focus on strengths drastically lower employees' rate of disengagement - down to less than 1% (Gallup, 2009).
  • Belief in senior leadership is the strongest engagement driver; growth & development is the second (Modern Survey).

Company Case Study: Coors Brewing Company

Coors Brewing Company is committed to employee engagement and development, conducting an annual employee engagement survey. In 2010, Coors found that 87% of the company’s employees were engaged -- an astonishing result compared to much the 30% average across most American companies (Gallup, 2017). When it comes to their bottom line, Coors estimates that their employees are five times less likely to have safety incidents due to such high employee engagement, reporting  saving $1,721,760 in safety incidents in 2002. Additionally, Coors tracks the performance differences among low-engagement and high-engagement teams, finding low-engagement versus high-engagement teams to yield a difference in performance-related costs of $2,104,823 (McLean & Company staff, 2012).

Next Steps...

Contact us to find out how we can partner with your organization to enhance employee engagement and well-being.