The Employee Engagement Effect

Engaged Employees = Business Results

According to multiple surveys of human resource executives, businesses are out of touch with their employees’ perceptions of engagement, training and career development. Unfortunately, the failure to develop, engage and retain talent is a growing trend. Employee engagement, for example, currently stands at a dismal 35.4%. The good news is that’s up from a low of 21% just a couple of years ago.

You might wonder, “What do engaged employees look like?” and more importantly, “What’s in it for me?”.

Gallup defines engaged employees as those who are involved in, enthusiastic about and committed to their work and workplace. To break it down even further, we believe there are really three types of engagement:

  • Engaged employees work with passion and feel a profound connection to their company.  They drive innovation and move the organization forward.
  • Enrolled employees are essentially “checked out”.  They’re sleepwalking through their work day, putting in time – no energy, no passion
  • Disengaged employees aren’t just unhappy at work: they’re busy acting out their unhappiness (i.e. complaints, gossip, irresponsibility, know-it-all).  Every day, these workers undermine what their engaged coworkers accomplish.

There are numerous benefits of employee engagement, most of which are measurable and can be affected by better performance management practices. It’s become clear that employee engagement continues to be an important predictor of company performance, using these well-established measures of performance outcomes which have been confirmed by Gallup:

  • customer ratings
  • profitability
  • productivity
  • turnover (for high-turnover and low-turnover organizations)
  • safety incidents
  • shrinkage (theft)
  • absenteeism
  • patient safety incidents
  • quality (defects)

It’s no secret that the failures of traditional performance management and the resulting shortfalls of employee engagement have become painfully apparent for most organizations when it comes to business results.

To view previous blogs, click here.

Jackie Messersmith is President and CEO of Talent Management LLC. Talent Management provides consulting services to small to mid-size businesses to put a top performing company culture and talent strategy in place, and is the developer and distributor of Talent Snapshot®, an integrated, competency-based, “in the cloud” talent management solution. Jackie can be reached at 513-528-9700 or