High Employee Engagement + Positive Culture = Greater Profitability


Most companies have some sort of employee engagement initiative underway and company leaders expect tangible benefits from those initiatives. Fortunately, there is data that proves that companies with high employee engagement and a positive culture enjoy greater customer engagement and profitability.

For 6 years starting in 2012, an Engaged Company Stock Index study was conducted to track whether companies with high levels of employee, customer and community engagement outperformed standard stock indices. Results confirmed the hypothesis:

Based on a hypothetical $10,000 investment, the “good” companies increased stock prices by 149.4% ($24,940) and outperformed the S&P 500 average return of 112.3% ($21,230).  A 37.1% greater performance!

Certainly, the culture of a company contributes to the level of employee engagement; it’s difficult to separate the two. Typically, companies with a positive culture have intentionally built a culture of recognition. Recognizing and rewarding employees that embody the company’s values contributes to a positive company culture and increases engagement. While it’s more difficult to quantify specific elements of a positive company culture, there are many tools available now to measure employee engagement.

Both employee engagement and a positive company culture offer benefits beyond measurable profitability. They include:

  • Higher employee retention
  • Lower absenteeism
  • Fewer accidents and insurance claims
  • Better healthcare outcomes
  • More effective leadership
  • Higher productivity
  • Higher customer retention

Support from top company leadership is a major predictor of successful employee engagement initiatives. People pay attention to what is measured. Reward and recognition programs clearly outline the goals, align tasks with company objectives and reward behavior that contributes to achievement of those goals.

Few in-house employees have experience designing effective employee programs. Many end up learning from their mistakes and experiencing unintended consequences. An experienced Incentive Professional can help to design an employee reward and recognition program that will increase employee engagement and improve company culture.

Contact us today to get started improving your profitability through increased employee engagement and improved company culture.




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