Creative business team meeting, brainstorming in circle on floor

The benefits of engaged and motivated employees to organisations

Promoting employee engagement, motivation and job satisfaction often takes time and resources, so what drives organisations to do so?

Quite simply, organisations need energetic and dedicated employees: people who are engaged with their work.

Employee engagement contributes to increased efficiency, productivity, higher levels of customer satisfaction, lower turnover rates and long-term survival (Buhler 2006; Hakeem and Gulzar 2015; Novack 2006).

The Q12 instrument

The most comprehensive study to date of employee engagement has come from the Gallup organisation’s research using the Q12 instrument.

According to Coffman and Gonzalez-Molina (2002), results of Gallup research have shown that business units in which employees score in the top half on employee engagement have, on average:

  • A 56% higher success rate with customer loyalty
  • A 44% higher success rate on staff turnover
  • A 50% higher success rate on productivity outcomes
  • A 33% higher success rate on profitability outcomes

Harter, Schmidt, and Hayes (2002) completed a meta-analysis of prior studies on employee engagement that were conducted by Gallup. The researchers examined the relationship between employee satisfaction-engagement, and the business-unit outcomes of customer satisfaction, productivity, profit, employee turnover and accidents.

They noted that one of the defining elements of employee engagement is the actionable quality of the measured concepts. In other words, employee engagement is related to meaningful business outcomes and many of the core issues of engagement are ones over which managers can have substantial influence.

High levels of satisfaction and employee engagement were positively correlated with customer satisfaction, profitability, productivity and safety outcomes. On average, business units that had employee scores in the top quartile range on the engagement scale had a one to four percent higher profitability.

You can find out more about the benefits of improving employee engagement and motivation in the following step where we’ll look at two case studies.

Taking it further

You can study the themes covered this week in much greater depth in the second course of this program, Fostering Employee Motivation and Work Engagement.


References

Buhler, P. (2006) ‘Engaging the Workforce: A Critical Initiative for All Organizations’ Supervision [online] 67 (9), 18–20. available from https://locate.coventry.ac.uk/primo-explore/fulldisplay?docid=TN_gale_ofa151398081&context=PC&vid=COV_VU1&search_scope=Primo_Central&tab=remote&lang=en_US [10th May 2019]

Coffman, C., and Gonzalez-Molina, G. (2002) Follow this Path: How the World’s Greatest Organizations Drive Growth by Unleashing Human Potential. New York, NY: Warner Books

Hakeem, I.A., and Gulzar, S. (2015) ‘Employee Engagement: An Empirical Study of Higher Education Sector in Kashmir’. Abhinav International Monthly Refereed Journal of Research in Management & Techonology 4 (4), 20-26

Harter, J.K., Schmidt, F.L. and Hayes, T.L. (2002) ‘Business-Unit Level Relationship Between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta-analysis’. Journal of Applied Psychology [online] 87 (2), 268-79. available from https://locate.coventry.ac.uk/primo-explore/fulldisplay?docid=TN_apa_articles10.1037/0021-9010.87.2.268&context=PC&vid=COV_VU1&search_scope=Primo_Central&tab=remote&lang=en_US [10th May 2019]

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This article is from the free online course:

Employee Engagement and Motivation: An Introduction

Coventry University