Gallup recently conducted a study of over 2000 business units in ten large corporations to gauge employee engagement. They asked the employees twelve questions designed to give managers feedback so they could take action to improve. An example is, “In the last 7 days, I have received praise or recognition for doing good work”. Pretty easy for a manager to know what’s needed with that feedback.
The Gallup researchers didn’t find the direct correlation between profitability and engagement. What they found was that there is lower turnover and better customer care when you have engaged employees. Arguably, happy customers and less expense for training and recruiting would lead to more profitability.
“They don’t just immediately make profit. They show up for work, they please customers, they build a safer environment, they produce higher quality products — and those things accumulate to affect financial performance. When people perceive that they’re cared about at work, they’re more likely to show up, and they’re more likely to do things that benefit the organization in the longer term. And if people feel that someone at work encourages their development, they’re more likely to pay attention to customers. The data(1) suggest that if employees feel that someone’s looking out for their best interest, they then reciprocate and look out for the best interest of the organization. Dr. Jim Harter,Gallup’s chief scientist of workplace management and wellbeing. (1) Article: What Really Drives Financial Success Study.
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