With employee engagement declining in North America, the next question to ask is the toll and cost this disturbing trend is having on business. The bottom line, low employee engagement may be costing you $6k per employee.
Halogen Software recently shared this infographic outlining the “dollars and cents of employee engagement”. What I really enjoyed is the excellent write-up and analysis provided by Dominique Jones of Halogen providing both context, 3rd party research and a set of solid assumptions. Dominique is the VP of HR for Halogen and I look forward to reading more great posts from her.
In her analysis she shows how a company with 500 employees may be losing $3m dollars per year due to poor employee engagement. That’s a lot of coin not falling to the bottom line, $6,000 per employee.
There is hope with 76% of employees showing improvements in engagement with intervention. One of the easiest things a company can do to engage employees is to implement a peer-based recognition program. We have seen rates of +90% voluntary employee participation in these programs that get the whole team fired up.
I highly recommend your check out Dominque’s post to understand the logic and numbers behind the picture below.
The Dollars and Sense of Employee Engagement
I’m a baby boomer and I’m embarrassed by the debt we have left in the US for future generations to pay off. Fortunately there is some hope with the new generation of workers who appear to be more fiscally responsible with their personal finances.
A new study out from Merrill Edge shows that Gen Y, defined by the study as those 18-34, is starting to save for retirement earlier than any other generation. This high savings rate reinforces data shared in the following infographic by Scarborough Research showing that 59% of Millennials are savers as opposed to spenders.
To me, the message is clear, if you want to attract Millennials you better make sure you have a good 401k program.
As the baby boomers to hit retirement age, they will be replaced by “Generation Y” or “Millennials,” who number almost 80 million. This talented and diverse group of employees want to learn and grow with their company. Millennials are motivated by having a sense of accomplishment. As this infographic shows, 80% of Millennials prefer on the on the spot recognition and real-time feedback. You can now go online and instantly thank a co-worker with the new way to give kudos. Millennials are tech-savvy social media enthusiasts. You don’t have to friend them on Facebook or follow on Twitter, but at the minimum, connect with them on Linkedin and build out your own professional network of fresh talent.
Infographic by UNC
Related Post and Infographic: Millennials are super-savers