EMPLOYEE ENGAGEMENT levels at high-growth companies exceed those of lower-growth companies by more than 20 percent, according to a global study conducted by Hewitt Associates
EMPLOYEE engagement levels at high-growth companies exceed those of companies with lower growth by more than 20 per cent, according to a global study conducted by Hewitt Associates.
Based on data gathered from more than 4 million employees, the study examined engagement levels and practices of double-digit growth (DDG) companies (those with five-year compound average revenue growth of 10 per cent or more) against companies that achieved less than 10 per cent growth.
It found that high-performing companies typically have better communication around career path and opportunities for personal growth, and managers who are more focused on helping employees meet career goals.
Additionally, employees at rapidly growing organisations are 18 per cent more likely to feel that there are sufficient opportunities to obtain the skills necessary for advancement and 16 per cent more likely to feel that they have a chance to improve their skills.
“High engagement at high-growth companies can be viewed as a chicken-or-egg issue, with some arguing that strong financial performance drives greater engagement,” said Ray Baumruk, talent and engagement practice leader for Hewitt Associates.
The study found that double-digit growth companies solicit feedback on policies, practices and performance nearly twice as often as single-digit growth companies. As a result, they take action more quickly to improve problem situations or remove barriers to success.
Employees at these companies are 18 per cent more likely to say that they have a clear understanding of their role in corporate success and 17 per cent more likely to have a good understanding of their company’s goals. They are 12 per cent more likely to feel that they have the information and empowerment to do their jobs and 13 per cent more likely to trust senior leaders.
Across all organisations, leaders are generally 25 per cent more engaged than other employee groups. However, the engagement scores of leaders in double-digit growth firms are 33 per cent higher than for other employees.
“Ultimately, people care about and will produce better results for companies that value them,” said Baumruk. “While most companies acknowledge this on some level, this study reinforces how critical it is to harness the power of effective people programs in driving bottom-line benefits and improved business results.”
