Employee Engagement

Consulting firm Towers Watson says it has found evidence that employers with a fully engaged workforce tend to have higher profit margins. The firm’s study covered some 32,000 employees.

It found that about two-thirds of the employees surveyed weren’t “fully engaged” in their work and frustrated by the level of support they receive. And that wasn’t good for their employers either.

Towers Watson said companies that scored high in employee engagement also scored better in profit margins. In fact, it found that profit margins of such companies were about three times higher than those of low-scoring employers.

“When workers are not fully engaged, it leads to increased risk for employers,” says France Dufresne, leader of Towers Watson’s Talent and Rewards practice. “It makes companies more vulnerable to lower productivity and higher inefficiency, greater rates of absenteeism and turnover and increased costs for chronic illnesses.”

In addition to an employee’s willingness to give effort to the employer, Towers Watson also looks at the tools they have available to do the work efficiently and how well the work environment promotes a sense of well-being and energy.

It says similar disparities appeared with regard to the ability to sustain energy throughout the work day (97 per cent versus 32 per cent), and sense of personal accomplishment at work (99 per cent versus 33 per cent).




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