Professional Documents
Culture Documents
+
mploycc ngagcmcnt
Whats Your Engagement Ratio?
Copyright 2008, 2010 Gallup, !nc. All rights rcscrvcd. Gallup
, Gallup Consulting
, C
11
, Q
12
, Pcrlormancc ptimization
TM
, and Tc Gallup
Path
arc tradcmarks ol Gallup, !nc. All othcr tradcmarks arc thc propcrty ol thcir rcspcctivc owncrs.
Covvvicn: :oo8, :o+o G~iiuv, !xc. Aii vicn:s vvsvvvvb.
+
Gallups cngagcmcnt ratio is a macrolcvcl indicator ol an organizations hcalth
that allows cxccutivcs to track thc proportion ol cngagcd to activcly discngagcd
cmployccs.Tc avcragc working population ratio ol cngagcd to activcly
discngagcd cmployccs is ncar 2:1.
Activcly discngagcd cmployccs crodc an organizations bottom linc, whilc
brcaking thc spirits ol collcagucs in thc proccss. Vithin thc U.S. worklorcc,
Gallup cstimatcs this cost to thc bottom linc to bc morc than 8300 billion in
lost productivity alonc. !n stark contrast, worldclass organizations that havc
built a sustainablc modcl using Gallups approach havc an cngagcmcnt ratio
ol morc than 9:1. As organizations movc toward this bcnchmark, thcy grcatly
rcducc thc ncgativc ccct ol activcly discngagcd cmployccs whilc unlcashing thc
organizations potcntial lor rapid growth.
Whats Your
Engagement Ratio?
mploycc ngagcmcnt as a Corc Stratcgy
The worlds top-performing organizations understand that employee engagement is a force that drives business
outcomes. Research shows that engaged employees are more productive employees. They are more protable,
more customer-focused, safer, and more likely to withstand temptations to leave the organization. In the best
organizations, employee engagement transcends a human resources initiative it is the way they do business.
Employee engagement is a strategic approach supported by tactics for driving improvement and organizational
change. The best performing companies know that developing an employee engagement strategy and linking it to
the achievement of corporate goals will help them win in the marketplace.
Unleashing the Potential for Growth
67%
26%
7%
33%
49%
18%
Engaged
Not Engaged
Actively Disengaged
World-Class Average
9.57:1 1.83:1
Ratio of Engaged to Actively Disengaged
Covvvicn: :oo8, :o+o G~iiuv, !xc. Aii vicn:s vvsvvvvb.
:
Te 12 Elements of Great Managing
I know what is expected of me at work.
I have the materials and equipment I need to do my work right.
At work, I have the opportunity to do what I do best every day.
In the last seven days, I have received recognition or praise for doing
good work.
My supervisor, or someone at work, seems to care about me as a
person.
There is someone at work who encourages my development.
At work, my opinions seem to count.
The mission or purpose of my organization makes me feel my job is important.
My associates or fellow employees are committed to doing quality work.
I have a best friend at work.
In the last six months, someone at work has talked to me about my prog-
ress.
This last year, I have had opportunities at work to learn and grow.
Copyright 19931998 Gallup, !nc. All rights rcscrvcd..
Gallups Rcscarch8ascd Approach
Gallups cmploycc cngagcmcnt work is bascd on morc than 30 ycars ol indcpth
rcscarch involving morc than 17 million cmployccs. Tis rcscarch has appcarcd
in many busincss and scicntic publications, including thc Journal of Applied
Psychology and thc Harvard Business Review and in our bcstsclling books First,
Break All the Rules and thc scqucl 12: Te Elements of Great Managing.
Gallup has dcvclopcd and idcnticd 12 corc clcmcnts that link powcrlully to
critical busincss outcomcs. Tcsc 12 statcmcnts cmcrgcd lrom Gallups
pionccring rcscarch as thosc that bcst prcdict cmploycc and workgroup
pcrlormancc.
12 Elements of Engagement
Covvvicn: :oo8, :o+o G~iiuv, !xc. Aii vicn:s vvsvvvvb.
t
a
b
i
l
i
t
y
Typical Net Gain at the Organizational Level
Covvvicn: :oo8, :o+o G~iiuv, !xc. Aii vicn:s vvsvvvvb.
Pcrlormancc ptimization
: Managing thc
mployccCustomcr ncountcr
Taking cmploycc cngagcmcnt onc stcp lurthcr, Gallups Pcrlormancc
ptimization approach ocrs an innovativc, rcscarchbascd approach to onc ol
thc toughcst challcngcs busincsscs lacc today: how to drivc succcss by ccctivcly
managing thc momcnts whcn cmployccs intcract with customcrs. Tis approach
brings cmploycc and customcr cngagcmcnt on to a singlc managcmcnt platlorm.
!t combincs a provcn mcthod lor asscssing thc hcalth ol thc cmploycccustomcr
cncountcr with a disciplincd proccss lor improving it. Gallup is uniquc in its
ability to dcsign and cxccutc this aligncd approach bccausc our cxpcrtisc and
global capability in markctplacc consulting practiccs is as dccp as our cxpcrtisc
and global capability in workplacc consulting practiccs.
ur mctaanalysis ol cngagcmcnt and nancial pcrlormancc in companics across
multiplc industrics rcvcals that busincss units that scorc abovc our databasc
mcdian on customcr and cmploycc cngagcmcnt signicantly outpcrlorm units
that rank in thc bottom hall on both mcasurcs.
rganizations cmploying Pcrlormancc ptimization principlcs havc outpcrlormcd
thcir compctitors by 26 in gross margin and 85 in salcs growth. Tcir customcrs
buy morc, spcnd morc, rcturn morc oltcn, and stay longcr. 8lcnding stratcgic
analysis with handson, practical stcps and advicc, Pcrlormancc ptimization
changcs how lcadcrs vicw thcir work, thcir cmployccs, and thcir customcrs.
240%
Boost
70%
Boost
70%
Boost
1.0
(Baseline)
LOW
Q
12
EMPLOYEE ENGAGEMENT
HIGH
L
O
W
C
E
1
1
C
U
S
T
O
M
E
R
E
N
G
A
G
E
M
E
N
T
H
I
G
H
Te Impact of Performance Optimization
TM
Covvvicn: :oo8, :o+o G~iiuv, !xc. Aii vicn:s vvsvvvvb.
8
Changc Tat rivcs utcomcs
Transformation does not occur instantaneously. It takes a lot of energy and effort to initiate change, and it takes
even more energy to build on that momentum. It takes focused attention to drive engagement. A partnership with
Gallup will help your organization inuence and inspire engagement by building a people strategy that holds
people accountable for performance, aligns communication, and builds development opportunities for leaders,
managers, and frontline employees, giving your organization a competitive edge.
Gallups Global Rcach
Gallups 2,000 prolcssionals dclivcr scrviccs at clicnt organizations and lrom 40
occs around thc world.
Gallup maintains thc worlds most comprchcnsivc historical and comparativc
cmploycc cngagcmcnt databascs. Tc historical databasc contains data collcctcd
in 67 languagcs lrom morc than 17 million rcspondcnts in 175 countrics
worldwidc. Gallup updatcs thc comparativc databasc annually, which cnablcs
clicnts to bcnchmark thcir organizations cmploycc cngagcmcnt lcvcls against
thc most rcccnt data Gallup collccts lrom around thc world. Gallups most
rcccnt databasc, covcring thc past thrcc ycars, includcs data collcctcd lrom morc
than 6.5 million cmployccs rcprcscnting morc than 815,000 workgroups in 16
major industrics and morc than 70 subindustrics in 170 countrics worldwidc.
Gallup undcrstands thc importancc ol timcly data and rclcvant comparisons in
thc compctitivc landscapc ol todays lastpaccd markctplacc. As a rcsult, your
organization can comparc its cngagcmcnt data with Gallups global, worldclass,
industryspccic, or custom databasc scgmcnts.
Benchmarking World-Class
Organizations
Covvvicn: :oo8, :o+o G~iiuv, !xc. Aii vicn:s vvsvvvvb.