Repeated studies over the past 10 years have shown that the business performance of organisations in the highest quartile of employee engagement scores outpace that of competitors. High employee engagement correlates with higher average revenue growth, net profit margin, customer satisfaction and earnings per share.
HR Coach has been researching the significance of alignment for business performance and profitability since 2003. Our strategic action model, underpins our ongoing methodology and assessment tools and focusses specifically on the need for businesses to ensure that their ongoing activity and energy is aligned to their strategy.
We have measured over 850 Australasian businesses against this model since 2008 and consistently found that over 50% of businesses have alignment rates below 67%. This means that half of the businesses in Australasia are potentially spending a third of their labour budget for a nil or negative return. Ie. If they could improve their employee engagement / alignment rates it would flow directly to their bottom line.
When margins are tight, market competition is fierce and employee loyalty is challenging, the time is right to focus on improving the engagement and alignment of the workforce in every business. It is the only way in these times to ensure improved performance and profitability – as people are both the ‘engine room’ and a significant cost to every business.
Download the Employee Satisfaction Doesn’t Mean Profit White Paper if:
- You are a business owner keen to maximise your business performance and profitability
- You are responsible for the people aspects in your business and you want to improve the business outcomes
- You have invested heavily in employee satisfaction initiatives and now want to generate a greater return for the business