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Determining the Business Impact of Employee Engagement

Considering the resources organizations spend on engagement programs and the powerful impact engagement can have on an organization, many leaders and HR decision makers want to ensure that their current offerings are making an impact. But crafting a compelling business case for engagement is a complex task. This report focuses on how organizations calculate the business impact, or even return on investment (ROI), of their employee engagement initiatives. We conducted a comprehensive literature review and interviewed human capital executives at three highly engaging organizations that are measuring the impact of their engagement initiatives: General Motors, Royal Bank of Scotland, and Teleperformance.

EXECUTIVE SUMMARY

Companies spend over $720 million USD on employee engagement initiatives each year.1 Despite ongoing efforts, many organizations struggle to measure the impact of these investments. This report focuses on how organizations are tying engagement results to business outcomes and priorities. The organizations we highlight have a track record of improving performance and driving business results based on engagement data and employee feedback. They demonstrate the impact of their engagement efforts in terms of reduced turnover, customer satisfaction scores, safety improvements, and other measures.

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AUTHORS

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Amanda Popiela

Researcher, Human Capital
The Conference Board

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Patti P. Phillips, PhD

Distinguished Principal Research Fellow
The Conference Board
President & CEO
ROI Institute, Inc.


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