Proven link between employee engagement and business success

News
Joanne Swann
two women in suits standing beside wall

There is a clear quantifiable relationship between employee engagement and successful business metrics, according to a pioneering new study by Reward Gateway | Edenred, the leading employee engagement platform.  

The study “Employee Engagement: An Economic Value Study” published in partnership with research consultancy Meridian West, conducted research with more than 300 ​​organisations across Australia, the US, the UK, and the EU. The research surveyed business leaders about the levels of engagement they are seeing, what they have been doing to drive it, and what the effects have been on the wider health and performance of their business.

The study collected data on a series of metrics that relate to an employer’s experiences of their employees’ engagement levels, including retention, productivity, skills development, value alignment, and wellbeing. It also collected data on business performance, such as customer satisfaction, revenue growth, and profitability.

A clear trend emerged: those that have a highly engaged workforce tend to also be those that report that business is booming. The report goes on to identify and explore the employee engagement solutions that drive this growth.

Nick Burns, CEO at Reward Gateway, believes that prioritising and fostering high employee engagement is a strategic necessity for driving superior business results and long-term viability. Companies that fail to nurture an engaged workforce place themselves at a critical disadvantage versus their more invested competitors.

However, Burns warns that there is no one-size fits all approach:

Workforce dynamics are changing as new generations come into the workplace, preferred working patterns are ever-changing, and strategies that work for easy-to-reach desk-based workers can be harder to replicate when communication challenges arise among harder-to-reach workers such as those in retail, manufacturing or transport.

Nick Burns, CEO at Reward Gateway

Cash bonuses only go so far

The research also shows that cash bonuses can be a very effective tool to motivate employees; however, when used without consideration, they can fail to live up to their fullest potential.

The research shows that the typical bonus has no significant correlation with any facet of employee engagement or any positive business outcome. While these are valuable, it may be the case that they have become untethered from any sentiment of appreciation. High performers used to receiving a bonus may begin to see it as part of their overall compensation package; meanwhile, low performers receive no motivation from it at all.

Nick Burns, CEO at Reward Gateway, concludes:

Investing in employee engagement is not just the right thing to do – it’s a business imperative. There is a distinct link between engaged employees and stronger business performance across key metrics like profitability, growth, retention, and customer satisfaction – and the more valuable and skilled a business requires its staff to be, the stronger this link is.

For full report please visit here.

Joanne Swann, Content Manager, WorkWellPro
Editor at Workplace Wellbeing Professional | Website |  + posts

Joanne is the editor for Workplace Wellbeing Professional and has a keen interest in promoting the safety and wellbeing of the global workforce. After earning a bachelor's degree in English literature and media studies, she taught English in China and Vietnam for two years. Before joining Work Well Pro, Joanne worked as a marketing coordinator for luxury property, where her responsibilities included blog writing, photography, and video creation.

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