Happy employees linked to higher profits

It’s no secret to the HR managers of the world. But for those in management or running their own businesses, ‘employee engagement’ might not be something high on the agenda. Turns out, it really should be.
Employee engagement has long been linked to productivity. But a new study has found it is also linked to profitability.

A research study from Towers Watson released this week found that the profit margins of companies who scored highly in employee engagement also scored better in profit margins.

This shouldn’t come as a complete surprise. Naturally, people who like their jobs put more into it. They take an interest in seeing their company succeed. It makes sense, right?

Positive attitude, positive cash flow?

The attitude of the people around your office matters. Virtually all engaged employees (95%) reported hey had the work tools and resources they needed to achieve exceptional performance. For those that were disengaged, it dropped to 20%. What does this mean? Happy, productive employees have a generally more positive attitude about getting work done.

The same disparities were found for both ability to sustain energy
throughout the work day and a sense of personal accomplishment at work, both of which are linked to productivity.

“When workers are not fully engaged, it leads to increased risk for employers,” commented France Dufresne, leader of Towers Watson’s Talent and Rewards practice in Montreal. “It makes companies more vulnerable to lower productivity and higher inefficiency, greater rates of absenteeism and turnover and increased costs for chronic illnesses.”

The study also found some disappointing results about Canadian employees. The majority (67%) of workers are not fully engaged in their work and are frustrated by the lack of support from their organization. Engagement is not only key for retaining talent, it’s actually linked to profit margins.


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