Employee Engagement More Than Doubles Stock Price Growth

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Quantum Workplace study reveals 11 different data points on engagement’s effect on financial performance.

Higher employee engagement resulted in 2.5 times greater growth in stock price during a three-year period, according to a new study by Quantum Workplace.

The report compares a sample of publicly traded, highly engaged organizations with an average of 75.6 percent engaged employees to a group of publicly traded organizations with an average of only 54.8 percent engaged employees.

Examining a variety of measures of financial success, the study shows the correlation between employee engagement and the bottom line. Other findings from the report include:

  •     More engaged organizations experienced greater revenue growth.
  •     Organizations offering opportunities for career development were more likely to see greater financial success.
  •     Highly engaged organizations experienced 11.74 percent quarterly revenue growth compared to a 6.30 percent decline in revenue at organizations with less engagement.
  •     The greatest difference in engagement between the two groups was in the area of making employees feel valued.

“The two most important organizational aptitudes today are innovation and resilience—and culture is the single biggest driver of both,” said Greg Harris, CEO of Quantum Workplace. “Therefore, the link to wealth creation should not be a surprise.”

The report also shares insight on how engagement trended with the Dow, how organizations differed in the areas of leadership and retention, and how the groups differed in terms of price to sales ratio, stock price growth, and revenue.

To view the complete report, 11 Reasons to Be Bullish About Employee Engagement Impacting Financial Success, visit http://www.quantumworkplace.com/BeBullish

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