HIGHER LEVELS of employee engagement have been associated with superior top-line results, according to professional services and risk consulting group Aon.
Aon said a study accompanying its annual Best Employers Program found that every 5% increase in employee engagement corresponds to a 3% increase in revenues.
“If you get people positively engaged, you can say that they will be far more switched on for their role as employees. We start to (see a correlation with) topline growth and then bottomline profit. There’s an undeniable connection between those two,” Aon Insurance & Reinsurance Brokers Philippines, Inc. Chief Executive Officer Andrew Minnitt told reporters in a roundtable discussion on Tuesday.
High engagement suggests that employers treat their employees as equals while also giving them recognition for their work.
“The importance that simple recognition has within our society cannot be overstated. We have some statistics, records of how they’re fairly or unfairly paid versus recognition, and how that balance works out…Their happiness factor is critical,” Mr. Minnitt said.
Aon also found that in some instances, recognition is almost as important as salary.
In return, employees who are engaged “consistently speak positively about the organization to coworkers, potential employees and customers.” They also have “an intense desire to be a member of the organization,” while also exerting extra effort to engage in work that contributes to business success.
Mr. Minnitt said that employees with high engagement “want to do what they do.”
The average engagement score of the Philippine companies that joined the Aon survey is 88%. This is compared to the market average of 72%. which was derived from a study of 460 companies from the Asia Pacific and Middle East that participated.
“We see them committing steps for engagement. Their engagement scores are incredibly high. Local companies are perfectly capable of competing on any stage, but just an engagement score doesn’t necessarily mean that you are now becoming a best employer, there are various more measurables that come into play,” Mr. Minnitt added.
High employee engagement is one of the four components that Aon measures for its Best Employers program, with the others being effective leadership, compelling employer brand, and a high-performance culture.
Asked whether Philippine employers are weighed down by employment practices that deny workers a pathway to permanent status, Mr. Minnitt said short tenures do not necessarily mean that one can’t have an engaged workforce.
“The commitment starts and stops at the senior level, if you start to recognize every person part of the organization as being equal, whether they’re there for a longer period or a shorter contract, there’s equal opportunity for them to do business,” he said. — Arra B. Francia