Employee Engagement

What Soft Issues Mean for Hard Numbers

Abhishek Mittal Consultant Gallup Consulting

Background

Employee Engagement is a leading indicator of key business outcomes like sales, profits, attrition, productivity etc. The analysis presented here is based on a company based in the Middle East region, but such analysis has been done elsewhere as well Total employee base >7000 Financial data from its over 50 business centers was analyzed along with Employee Engagement data Workgroup level employee engagement measured using a proprietary metric. The metric has been globally researched, validated and found to be reliable across industries The employee engagement metric is computed on a scale of 1 to 5

Impact on Change in Sales
153.28

100 80.6

Employee Engagement Increases Significantly

Company Average

Employee Engagement Decreases Significantly

Change in Sales
A significant increase/decrease is defined as a change of 0.2 on a scale of 1-5 for the employee engagement metric

Impact on Change in Gross Profit Margins
0.70%

0.15%

-0.34%
Employee Engagement Increases Significantly Company Average Employee Engagement Decreases Significantly

Change in GP%
A significant increase/decrease is defined as a change of 0.2 on a scale of 1-5 for the employee engagement metric

Impact on Change in Operating Profit Margins
1.77%

0.72%

0.06%
Employee Engagement Increases Significantly Company Average Employee Engagement Decreases Significantly

Change in OP%
A significant increase/decrease is defined as a change of 0.2 on a scale of 1-5 for the employee engagement metric