If you’re a people-oriented leader or HR manager you know that investing in your employees is almost always worth it. Giving them freedom, training, and a positive work environment make them happier and helps them do better work. Unfortunately, convincing non-people oriented leaders to invest in employees isn’t always easy. Their focus is on money, and they don’t always see the relationship between employee engagement and profitability.

Fortunately, more and more research is coming out that clearly demonstrates how positive, meaningful employee experiences are incredibly good for the bottom line. Here are four sets of statistics that show why taking care of your employees is worth the money:

10% Increase in Customer Ratings and 20% Increase in Sales

Gallup’s State of the American Workplace report is a must-read for anyone involved with HR (even those outside the US). One of the most important findings in the report is that “highly engaged business units achieve a 10% increase in customer ratings and a 20% increase in sales.” When employees and the teams they are on feel more engaged, they’ll do better work. It’s that simple.

Engagement doesn’t just come from better pay or in-office ping pong tables, it comes from making the employee experience one of the pillars of work. By giving people flexibility, training, trust, and meaning in their work they’ll feel more engaged and deliver better results. That’s all the argument you should need in building the case for more resources.

Outperform S&P 500 by 122%

Glassdoor found that companies providing a good employee experience outperformed the S&P 500 by 122%. If someone was to offer you an investment that beat the market by that large a margin you would think they were running a Ponzi scheme. However, investing in your employees is not anything of the sort, it is simply a smart investment that can generate incredible returns.

21% More Profitable

In another study from Gallup, it was found that companies with highly engaged workforces were 21% more profitable than those with low engagement. How is this possible? Engaged employees are less likely to be sick, quit less frequently, and are more comfortable presenting innovative ideas and/or working harder to help the company succeed. Disengaged employees, on the other hand, tend to simply do the bare minimum required of them. They don’t feel the company is doing anything for them, so they don’t do anything in return. If your company is struggling to be profitable, give employee engagement a look.

Double Revenue with 24% Lower Headcount

Jacob Morgan has long been an advocate of the employee experience. In his latest book, The Employee Experience Advantage, he uses extensive research to demonstrate that companies that provide nearly perfect employee experiences – which he calls “experiential organizations” – don’t just make a little more money, they make a lot more money. They double revenue and quadruple profitability, all while having an average headcount that is 24% smaller than that of other companies.


How Can You Provide a Better Employee Experience?

Improving the employee experience and helping your company perform better won’t just happen overnight, but there is a lot you can easily do to get things rolling. Download our free ebook Improving the Employee Experience today to learn how!


[Ebook] Improving Employee Experience




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