5 Statistics on the ROI of Employee Engagement

roi of employee engagement
Measuring the ROI of Employee Engagement is a key challenge for today’s communicators. These statistics provide proof that measurement & improvement ARE worth the effort.

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Measuring the return on investment (ROI) of Employee Engagement is a key challenge for today’s communicators.  These statistics provide proof that measurement & improvement ARE worth the effort.

1. You’re beating your competitors

Want to know the secret to beating your competitors?  Engagement! Companies with engaged employees outperform those without Engaged Employees by 202%.  (Source: Dale Carnegie) “Employee engagement is the emotional commitment the employee has to the organization and its goals. This emotional commitment means engaged employees actually care about their work and their company. They don’t work just for a paycheck, or just for the next promotion, but work on behalf of the organization’s goals.” – Kevin Kruse

2. You have high employee retention 

Even if you aren’t specifically tracking your ROI, you can’t help but notice the positive effects of your engagement efforts in the office atmosphere and in employee turnover.  The ROI from Employee Engagement most frequently reported are: Employee Satisfaction and Employee Retention. That’s important because turnover can be costly, in fact, on average it’s $50,000 for every person (through recruiting and training costs).

(Source: DecisionWise)

3. Revenue is on the rise with increasing profits

It’s worth investing in your Employee Engagement efforts even if you can only do it in small ways to begin with.  Increasing Employee Engagement Investments by 10% can increase profits by $2,400 per employee, per year.  (Source: Workplace Research Foundation)

4. Employees aren’t missing work

One sure way to increase productivity is to reduce absenteeism. Companies with an engaged workforce report an average of 2.69 sick days taken annually per employee, compared to companies with weak engagement efforts, reporting an average of 6.19 sick days. (Source: Workplace Research Foundation)

5. Align to strategy

Be a step ahead of your competitors by developing a strategy and then supporting your strategic initiatives in effective ways.  Plan, execute and measure initiatives to accelerate strategic direction.  Why?  Even with all of this proven ROI, only about 25% of business leaders have an Employee Engagement strategy.

At ElevatePoint we think a lot about the ROI of Employee Engagement and the different means of increasing it.  For further reading on this subject, check out this related article “Measuring ROI on Employee Engagement” and “Indentifying High Performing Employees Through Internal Communications“.

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