Employee Engagement

Part One –The “Me” in Engagement: The importance for practitioners to balance individual and organisational needs for achieving organisational Performance

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Our research shows improving Employee Engagement by just 0.25 points can increase diluted earnings per share by $0.34 USD.  This increase in performance is achieved through several processes:

  • Increased employee motivation and discretionary effort (With a resultant increase in role performance)
  • Staying longer with an organisation (thereby retaining valuable skills and knowledge, and minimising turnover costs).

However, new research, based on a survey of over 30,000 New Zealand working adults, also confirms that (consistent with our high performance-engagement model) engaging employees is not enough. High-performing organisations don’t just have engaged employees – they also have organisational practices, systems and products/services that give these organisations position and commercial advantage in the competitive markets they operate in.

So, what do organisations need to do to improve not just employee engagement but also improve their position and competitive advantage in the market?  How can HR have a role in both?

Stay tuned for these insights in Part 2 of this blog.

Senior Consultant, IBM Talent Management Solutions

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