Why Employee Engagement is Important

According to a recent Gallup survey, only 32% of employees are engaged in their work. It should not be surprising to know that there is a correlation between the level of employee engagement and financial consequences.  ADP, which manages human capital, found that companies with engaged employees generate shareholder returns 22 percent above average and are 12 percent more profitable and 18 percent more productive. Their employees are also 87 percent less likely to leave. On the other hand,  TalentKeepers documents that the direct cost of turnover ranges from $500 to $20,000, per employee. Indirect costs, such as the investment in training, lost organizational knowledge, damaged morale, reduced productivity and service quality also take a hit when employee engagement is low.  

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