Productivity Through People – Employee Engagement is Simply Good Business Sense

Productivity Through People – Employee Engagement is Simply Good Business Sense

Productivity Through People: Employee Engagement

Over the past 12 months or so and throughout the HRM online programs, I’ve promoted the concept of Employee Engagement as a key measure of organisational success, and I’ve argued that employee engagement has a direct and quite profound effect on people productivity. In fact, this is the premise around which the CAL corporate courses have been designed.

There is a compelling case, comprehensively researched over this last decade or so, for pro-actively working on the employee engagement levels of your employees, but aside from that, it just makes plain common sense and/or good business sense as the level of engaged employees has a direct impact on many of the key business measures in an organisation.

Let me ask you – who do you think is going to work harder? Is it, the employee who hates their job and doesn’t want to be there or, the employee who loves their job, is fully engaged and motivated and has a genuine interest in the organisation?

It doesn’t take rocket science to tell us that the latter employee will do better on the job day in and day out. It just makes good business sense.

employee at work
Photo: CC BY 2006 Fabrizio Salvetti

The Gallup 2012 summary of findings on engagement at work1 found that employee engagement affects nine performance outcomes.

In employees that are highly engaged, there is,

  • 37% lower absenteeism
  • 25% lower turnover (in high-turnover organisations)
  • 65% lower turnover (in low-turnover organisations)
  • 28% less shrinkage
  • 48% fewer safety incidents
  • 41% fewer quality incidents (defects)
  • 10% higher customer metrics
  • 21% higher productivity


  • 22% higher profitability.

There is no doubt about it, time after time, this research and others like it have shown that, employee engagement consistently affects key performance outcomes no matter what the industry sector, the size or type or even the location of the organisation.

So then why don’t we act on it?

Why aren’t we all as HR Professionals, Managers and CEO’s doing all we can to ensure that all our employees are happy and motivated?

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  1. 2013 Gallup Q12 Meta-Analysis Engagement at Work: Its Effect on Performance Continues in Tough Economic Times. Gallup Inc. []