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.