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Best Practices: Employee Assessment

Enterprise Engagement: The RoadmapAs part of the Enterprise Engagement Alliance’s commitment to an open-source approach to information sharing on the implementation steps for stakeholder management, this begins an ongoing series featuring specific chapters in the EEA’s two books, Enterprise Engagement: The Roadmap 5th edition, by Bruce Bolger, Allan Schweyer, and Richard Kern, and Enterprise Engagement for CEOs, by Bruce Bolger.

Click here for links to RRN Preferred Solution Providers.
 
Enterprise Engagement: The Roadmap is the guidebook for any organization seeking to implement the “Social” of Environmental, Social, Governance (ESG) management, increasingly known as Stakeholder Capitalism. It is designed for any management in charge of making the shift toward a stakeholder approach to management and value creation.
 
The book is included with the EEA PurposePoint Academy membership library or can be purchased online.
 
This is an excerpt from Chapter 14, Employee Assessment. Select chapters will be featured in the coming weeks and throughout the year.
 
Click here for the full chapter.
 
The research is clear: Engagement provides a long-term competitive advantage. In 2005, a milestone book, The Enthusiastic Employee: How Companies Profit by Giving Workers What They Want, by Dr. David Sirota made headlines across corporate America. Sirota gathered never-before-published case studies, more than 30 years of employee attitude research, and data from 920,000 employees from 28 multinational companies. This data showed that the share prices of firms with highly engaged employees increased an average of 16% in 2004, compared with an industry average of 6%. Stock prices of companies with high morale outperformed similar companies in the same industries by more than 2½-to-1 during 2004, while the stock prices of companies with low morale lagged behind their industry competitors by a ratio of almost 5-to-1.
 
A Towers Watson study in August 2005 looked at 85,000 people employed in large and midsize companies in 16 countries on four continents. It showed there is a vast reserve of untapped “employee performance potential” that can drive better financial results if companies can successfully tap into this reserve. The study also showed that highly engaged workers believe they contribute more directly to business results than less engaged employees. For instance:
 
  • 84% of highly engaged employees believe they can positively impact the quality of their company’s products, compared with 31% of disengaged workers.
  • 72% of the highly engaged believe they can positively affect customer service, vs. only 27% of the disengaged.
  • 68% of the highly engaged believe they can positively impact costs in their job or unit, vs. just 19% of the disengaged.
Towers Watson researchers quantified this relationship by performing an analysis to explain current financial performance (measured as the market premium) as a function of various factors. They found a significant relationship between current financial performance and past engagement, even after controlling for past financial performance, industry and other considerations, to wit: A significant (one standard deviation) increase in the level of past employee engagement is associated with a 1.5% increase in current market premium, all other factors including past market premium constant. For the typical company in the sample with a market value of $14 billion, that represents an increase in market value of 1.7%, or more than $230 million.
 
Click here for the full chapter.
 
The book is included with the EEA PurposePoint Academy membership library or can be purchased online.
 

How RRN and Brand Media Coalition: Your Partner in Success in Incentives, Rewards, and RecognitionEnterprise Engagement for CEOs

Published by the Enterprise Engagement Alliance at TheEEA.org

  • The only weekly news, how-to and resource publication of record for the Incentive, Rewards, and Recognition field.
  • The only marketing agency focusing specifically on the IRR and broader engagement marketplace.
Contact Bruce Bolger at 914-591-7600, ext. 230 or email Bolger@TheEEA.org when you want to get to know or get known in this growing $176 billion marketplace.

The Industry’s Only Combined Media Platform and Marketing Agency to Help You Expand Your Business Enterprise Engagement: The Roadmap
 
  • All the industry news, research, announcements, and how-to articles read by over 20,000 end-users in sales, marketing, and human resources; incentive, recognition, loyalty and promotional companies, as well as marketing and human resources agencies, seeking to enhance performance through effectively designed incentive programs.
  • Unparalleled business development services for engagement, incentive and incentive travel, recognition firms; brands, gift cards and master fulfillment companies, and technology firms, featuring ROI-based business development strategy design and ongoing digital and social media and e-newsletter communications to help marketers profit in the coming era of cookie-less marketing. 
  • Unique abilities for solution providers to sponsor authoritative, evergreen content directly related to what they sell through the EEA’s Effective Practices series on articles in our media platforms.
  • EEA YouTube Channel with over three dozen how-to and insight videos and growing with nearly 100 expert guests.
  • Access to new technologies from EEA preferred solution providers enabling brands to create their own points-based or transactional redemption site.
  • Unparalleled expertise in program design, return on investment measurement, reporting, and prescriptive analytics.
Click here for complete information on all our services. 
 
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