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In the Average Organization, 74% of All Employees are Either Unengaged or Actively Disengaged! Operating at Only Two-Thirds Capacity, this Results in a LOSS of About One-Third of the Organization’s Payroll! Source: The Gallup Organization
That's right! According to research by The Gallup Organization, almost three-quarters of the employees in the average organization are only doing what it takes to just get by...or worse! This means that the average organization is wasting about 1/3 of their payroll. For an average organization of 100 people with a payroll of $3.75 million, the cost of lost productivity is $1.25 million! That doesn't include the cost of lost opportunity or lost customers, and certainly doesn't include the costs of sabotage and other acts of revenge that actively disengaged employees might undertake to "get even" with your organization. The research by Gallup is not unusual, either. Studies conducted by Walker Information Services on employee loyalty find similar results. Only about one-third of an average organization's employees are "Truly Loyal" while the remainder either feel trapped in their jobs or are planning to leave just as soon as the opportunity arises. And while the trend for 2003 is up slightly over previous years, having only one-third of your staff being truly loyal isn't something to be excited about.
Recent research by Watson Wyatt also reveals that having engaged and committed employees can have a significant impact on the bottom line of any organization. Their research found that those organizations that invested in creating a higher "Human Capital Index" were far more likely to have greater shareholder returns than those organizations that scored lower on the HCI. What is particularly interesting is that those organizations that focused specifically on practices that engaged in practices surrounding "prudent use of resources" found a negative value return. Yet, this is so often the course that most organizations take to control employees. However, the highest area for creating shareholder value is found in the areas of accountability. In other words, allowing employees to take responsibility for their jobs. That means having engaged employees! * What constitutes a “significant improvement”? A one standard deviation increase. Most answers to HCI questions are on a 1 – 5 scale, so a significant change is a one-scale-point movement from a 1 to a 2, a 2 to a 3, and so on.
Additional research shows that: Over a period of 11 years: Average Organizations increased revenues by 166%. They were able to increase Profits by only 1%. Exceptional Organizations were able to increase revenues by 682% and increased profits by 756%! Source - Corporate Culture and Performance, Kotter & Heskett
Over a period of 30 years: Exceptional Organizations’ stock out-performed the Average Organization by an average of 6.9 times. Source - Good to Great, Jim Collins
Over a period of over 50 years Exceptional Organizations out-performed Average Organizations by over 1500%! Source - Built to Last, Jim Collins & Jerry Porras
How did these Exceptional Organizations accomplish these
fantastic returns? By having employees that were highly engaged and
committed to the organization. You only get engaged employees when there
is a high level of Trust throughout the organization at every level. That
is what the Organizational Performance Management System
SM
is designed to accomplish. For more information about how engagement is
impacting your organization contact
Resource
Development Systems, LLC
today. Each day you delay could be costing your organization thousands of
dollars! “When you have disciplined people, you don’t need hierarchy. When you have disciplined thought, you don’t need bureaucracy. When you have disciplined action, you don’t need excessive controls.” Jim Collins Good
to Great Download the handout from our previous online courses on "Who's Working in Your Organization?™" and the linkage between the Trust Elements and the Gallup Q12. Learn more about how we go about measuring Employee Engagement in your organization with our Work Engagement Survey™.
Contact us for more information or continue browsing through our web site to learn more. |
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Resource Development Systems, LLC and its programs, please use our Contact Us Page or give us a call at: Phone 386-754-0920 Toll Free in the USA 888-909-6194 Last Modified: 25 February 2008 |
Who's
Working in Your Organization?™