Why engagement matters

Disengagement is costly. Organisations with high engagement levels outperform low engagement counterparts in total shareholder returns and higher annual net income yet research consistently shows substantial disengagement levels in UK employees, which is reflected in performance: UK output per hour for British workers remains at the pre-2008 level.

The list of compelling business reasons for investing in engagement is topped by the greater revenue and profits for those with engaged employees and includes improving productivity, customer satisfaction, customer retention, and innovation. Releasing the potential of an engaged workforce also holds the prospect of reducing costs associated with sickness, absence, employee turnover, production errors, accidents and inefficient processes.

And it’s good for employees: 86% of engaged employees say they “often feel happy” at work (compared with 11% of disengaged employees) while 54% of those actively disengaged said work had a negative effect on their physical health.

Engaged employees show higher levels of wellbeing, are more likely to enjoy their work, be able to cope with work-related problems, and are less likely to lose sleep over work issues. The CIPD found that those who were absorbed in their work were almost three times as likely to have key positive emotions at work (enthusiasm, cheerfulness, optimism, contentment, feeling calm and relaxed) than negative ones (feeling miserable, worried, depressed, gloomy, tense or uneasy).