Why bother with Employee Engagement?
Three Key Measurements for Business Success
Some business leaders and Human Resource professionals may ask, “Why should I bother with Employee Engagement?” we are doing fine. As the quoted from the legendary business leader Jack Welch, “If you’re running a business, though, whether it’s a corner store or a multi-product multinational, we would say there are three key indicators that really work: employee engagement, customer satisfaction, and cash flow.”1
Jack’s top three measurements are interesting. Let’s take a look at cash flow. Without adequate cash a business will fail, even a profitable business can fail if it has a negative cash position, whereas an unprofitable business with positive cash flow can survive. The cash flow allows organizations time to react and course correct.
Customer satisfaction is obvious, without customers you do not have a business. Keep in mind sales does not equal customer satisfaction. Some organizations track sales and not customer satisfaction, by the time your sales decline your customers are gone and your customer satisfaction levels are dismal. Remember customer satisfaction is a leading indicator and will let you know which direction your sales volumes will be going.
Now let’s take a look at employee engagement the measurement that Jack Welch says is the most important. Many organizations do not measure employee engagement at all or make the mistake of measuring employee satisfaction, two connected but completely different measurements. Employee engagement is a leading indicator of overall organizational performance, study after study continues to confirm and reinforce that organizations with increasing employee engagement have improving levels of organizational performance that links directly to the bottom line. This is the reason Jack Welch the legendary GE leader considers this the most important measurement.
Jack Welch goes on to say “Employee engagement first. It goes without saying that no company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it. That’s why you need to take the measure of employee engagement at least once a year through anonymous surveys in which people feel completely there are safe to speak their minds.”1
For a free no obligation information session to:
Understand what employee engagement is
Learn how to measure employee engagement using an employee engagement survey
Understand how to increase employee engagement through the employee engagement process
Contact EngageYourEmployees.com today at (519)858-1820 or 1-888-472-9767
1 Jack Welch, “A Healthy Company?”
Business Week Magazine, (May, 2006).
The author, Andrew Noel gained his Certified Human Resources Professional (CHRP) designation in 2003. He is co-founder of EngageYourEmployees.com a company that has a passion for helping organizations maximize the human potential through measurement and consulting. He has over fifteen years of progressive experience in employee engagement and the field of human resources having worked in senior positions at organizations ranging from start-ups to fortune 500 companies in a number of industries. Andrew has created and delivered Employee Engagement training to HR professionals as well as to business leaders.
