Would Your Poor Employee Engagement Turn Off Investors?

Recognize This! – Employee engagement is a good indicator of company strength and future for investors.

How effective are the UK efforts to make employee engagement a nationwide concern through its Engage for Success initiative? This article of one person’s experience at a recent Engage for Success event is positive and encouraging, but not earth shattering.

This article in Employee Benefits, however, really does change the game. Now, the UK’s Local Authority Pension Fund Forum (LAPFF) is putting a company’s ability and willingness to create a culture in which employees choose to engage as a primary reason for pension fund trustees and asset managers to invest in the company.

A guide published by LAPFF includes questions to assess how well organizations engage employees, including:

  • What is the ratio of engaged to disengaged employees in your organisation?
  • What hard evidence can you share with us that a link exists in your organisation between pay and staff performance?
  • How do you ensure the people who work for you share the organisation’s values in a way that enables them to connect with each other?

When employee engagement level becomes a factor in why investors should choose your company to invest in, then engagement has risen to executive-level importance across the board.

Even in this small sample of questions, I’m particularly pleased to see the third one. This indicates a clear understanding that employees living the values in their daily work is critical to employee engagement. More than that, the values become a way to build relationships that further the work.

If your organization were to be evaluated for investment based on employee engagement today, would you be ready?

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