QUICK Update
OCTOBER 2006 ISSUE

"Employee Engagement Boosts Bottom Line"

Anonymous

T & D

September 2006, p. 16

In a recent study, employee research firm ISR found a 52 percent gap in operating incomes between companies with highly engaged employees and companies with low-engagement employees. High-engagement companies improved 19.2 percent in operating income over the study period, while low-engagement companies declined 32.7 percent. Net income growth was 13.2 percent for high-engagement companies, while income declined 3.8 percent for low engagement companies.

An earlier study found that high-engagement companies experienced a 5.75 percent difference in operating margin and a 3.44 percent difference in net profit margin, as compared to low-engagement companies.

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All rights reserved