If you remember….I used a graphic from Kevin Kruse’s Engagement 2.0 book on the Engagement Profit Chain.
You can read that blog here.
I then added a 29th study to Kevin’s earlier Forbes article. A global Black Belt Six Sigma study, covering 5 key metrics of engagement with a Fortune 40 company.
These metrics included, Velocity, Quality, Safety, Attendance and Waste.
The study confirmed over $100,000,000 of engagement impact in just three years!
Yes, that is a hundred million.
You can access a white paper around that Six Sigma study and results by clicking here.
Check out this excerpt from Kevin Kruse’s most recent article in Forbes.
“Despite the impressive literature showing correlation between engagement and business outcomes, there is far less research showing causality. Many still wonder, “Maybe employees are just more engaged when their companies are growing, bonuses are big, and stock prices are climbing.”
In addition to showing causation, this study looked at the size of the effect (i.e., the strength of engagement) on customer satisfaction. Using a binomial effect size display for the link between engagement and subsequent customer satisfaction the findings were r = .43.
To put this effect size into perspective for everyday practitioners, it can be compared to the effect sizes of many drugs as reported in the journal,American Psychologist:
Chemotherapy and breast cancer survival: r = .03
Antibiotics and the cure for pediatric ear pain: r = .08
Smoking and incidence of lung cancer within 25 years: r = .08
Effect of ibuprofen on pain reduction: r = .14
Alcohol and aggressive behavior: r = .23
Sleeping pills and improvement in insomnia: r = .30
Viagra and improved male sexual functioning: r = .38
Employee engagement and customer satisfaction: r = .43
Indeed, the authors make a direct comparison, “the correlation between male consumption of Viagra and sexual performance has been calculated to be r = .38…which is similar to the relationship between employee commitment and subsequent 1-year customer satisfaction.”
The research continues to support the argument that an investment in employee engagement initiatives can lead to improved business outcomes.”
So, I encourage you to go out and get Kevin’s book, Engagement 2.0.
More importantly, go out and create engagement with your work team!
Help your people produce good results so in turn they feel food about themselves.
Employee Engagement pays!
Finally, here is an info graphic on the key elements of the engagement profit chain
