The document summarizes research on the benefits of talent engagement in organizations. It finds that talent engagement leads to better financial performance like higher earnings per share, operating income, and net income growth. It also leads to improved customer care, more sales, more innovation, higher profit margins, lower attrition rates, less wastage, and less sick leave. For example, companies with high engagement saw 27.8% EPS growth while low engagement companies saw -11.2% growth. Also, engaged employees were 87% less likely to leave their organization than disengaged employees.

1. talent engagement the facts Quantified benefitsidentified in Engaging for Success (2009) by Macleod and Clarke:

2. Talent Engagement leads to..... Better Financial Performance Improved Customer Care More Sales More Innovation Higher Profit Lower Attrition Rates Less Wastage Less Sick Leave

3. Impact of Engagement on Financial Performance Based on a 12 month global study involving 664,000 employees from 50 global companies across a range of industry sectors 27.8% 19.2% 13.7% High Engagement Low Engagement -3.8% -11.2% -32.7% 12 month EPS (Earnings per share) growth rate 12 month change in operating income 12 month net income growth rate

4. Better Customer Care / Relationships Strong correlation between highly engaged staff and client satisfaction (PWC) 70% of engaged employees indicate they have a good understanding of customer needs. 17% of non engaged employees say the same. of engaged employees advocate their organisations. 67% of the disengaged would advocate their organisations. (Gallup) 3%

5. More Sales higher on sales of banking products than those with low engagement scores. (Nationwide Building Society) 14% higher on sales of general insurance. (Nationwide Building Society) 34% More Innovation of engaged employees say work brings out their most creative ideas – only 3% of disengaged agree (Gallup) 59%

6. Higher Profit Margins 12% higher profitability (Gallup 2006) higher profit margin growth reported by Standard Chartered Bank in 2007 from high level engaged branches compared to low level ones. 16% Better Bottom Line Results improvement in operating income in companies with high levels (Tower Perrins—ISR global survey) 19.2 % decline in operating income in companies with low levels(Tower Perrins—ISR global survey 32.7% increase in profits per employee per year in companies that increase investment in a range of workplace practices that relate to engagement (IES/Work Foundation (2008) £1500

7. Lower Attrition Rates Better Staff Retention more employee turnover in companies in bottom quartile on engagement. 31-51% the amount by which engaged employees are less likely to leave the organisation than the disengaged. 87% Estimated cost of replacing each employee often put at equal to the person’s annual salary. (Corporate Leadership Council 2004)

8. Less Wastage Inventory Shrinkage 51% average increase in inventory shrinkage in low scoring companies (Gallup ) more accidents in low scoring companies (Gallup) 62%

9. Less Sick Leave the number of sick days engaged employees take on average a year 2.7 6.2 the number of sick days dis-engaged employees take on average a year

10. What do the facts tell you?