Why is employee engagement so important?

When employees are fully involved in and enthusiastic about their work and act as promoters for their company, we can describe them as ‘engaged employees’. Employee engagement has a positive influence on the brand of a company and can be seen as a heightened level of ownership where all employees want to do whatever they can for the benefit of their internal and external customers, and for the success of the organization as a whole.

Hewitt’s research (2010) shows that Employee engagement in the company is very important because it has a direct impact on the financial performance of the company. Organizations with high levels of engagement (65% or more of the employees are engaged) outperform even in volatile economic conditions. In 2009 the total shareholder return was 19% higher than the average total shareholder return.

Companies with low engagement (<40% engaged) had a shareholder return that was 44% lower than the average.

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