In 2012, there was a big scandal at J.P. Morgan around the trading loss from the London Whale. This big scandal was over $6 billion. The legendary banker Jamie Dimon said, “The London Whale trading fiasco was the stupidest and most embarrassing situation of my career.”
Certainly you could see how this could be the most embarrassing and stupidest thing in Mr. Dimon’s career.
I recently read an article in Fast Company that cited Gallup’s most recent employee engagement research.
This is the eighth year Gallup has done a study like this, and the results have been remarkably consistent each time. If you want to know the bottom line cost of low employee engagement, it’s estimated to cost North American companies $370,000,000,000.00 a year!
Imagine; that’s another 62 London Whale scandals that happen every year right under senior leaders’ noses in North America.
The crazy thing is nobody talks what about the cost of the lack of employee engagement in companies across North America!
The engagement study looked at almost 50,000 businesses that included roughly one and a half million employees in 34 countries. As one would logically conclude, the organizations that scored in the top half of employee engagement have double the odds of success of those in the bottom half.
Here are the benefits of High Employee Engagement:
- 37% lower absenteeism
- 25% lower turnover (in low-turnover organizations)
- 65% lower turnover (in high-turnover organizations)
- 28% less shrinkage
- 48% fewer safety incidents
- 41% fewer patient safety incidents
- 41% fewer quality incidents (defects)
- 10% higher customer metrics
- 21% higher productivity
- 22% higher profitability
To create sustainable results with engagement make sure that you are:
• Providing learning that develops the skills that make your employees more marketable, ideally internally, but maybe someday externally.
• Ensuring there is proper differentiation in how you rate performance amongst your employees. There is nothing worse than polluting the winner’s circle with low performers.
• Removing obstacles or policies that can negatively affect employee engagement.
• Leveraging your employees’ distinct abilities and ensuring the right people are in the right role.
• Ensuring that leadership styles and competencies are aligned to motivate and enable your employees.
• Focusing on non-monetary rewards such as career growth, recognition and learning opportunities.
• Creating and communicating a clear link between performance and rewards within your work group and organization.
Remember, you will know when you have engagement when everyone in your organization (yes, including you) is doing the right thing, at the right time, the right way, for the right reason.
Most importantly, the organizations that create high employee engagement consistently create more memorable and profitable customer experiences!