Key to Growing Sales and Earnings? A Motivated and Empowered Workforce, According to Korn Ferry Study
- Study Shows Companies with Highly Motivated Employees See Nearly Double the Growth of Sales and Earnings Per Share -
LOS ANGELES--(BUSINESS WIRE)-- Creating a culture where employees are highly motivated and well supported in doing their jobs effectively is not only good for employees, it’s good for the bottom line. That according to a new Korn Ferry (NYSE:KFY) analysis of employee survey data from more than 400 companies spanning multiple industries globally.
Researchers found a direct relationship between highly engaged and enabled employees and increased company sales/earnings.
Growth in Sales:
- Companies where employees scored high on engagement saw nearly double the 5-year sales growth rates of those with low engagement scores.
- Companies where employees scored high on feeling enabled to do their jobs saw nearly triple the 5-year sales growth rates of those with low scores in this area.
Growth in Earnings Per Share (EPS)
- Companies where employees scored high on engagement saw nearly double the 5-year EPS growth rates of those whose employees scored low on motivation.
- Companies where employees scored high on feeling enabled to do their jobs saw 33 percent higher 5-year EPS growth rates of those whose employees scored low in this area.
“If you ask most organizational leaders what their top priority is, they’ll say strong growth. The most successful leaders recognize that employees willing to go the extra mile and well positioned for success in their jobs are key to driving and sustaining that growth,” said Korn Ferry Senior Director Mark Royal. “Organizations that match the ‘want to’ behind performance with an equally strong ‘can do’ consistently see the best results.”
Korn Ferry researchers also found a strong relationship between engaged and enabled employees and retention and performance.
- Performance: Highly engaged employees who are also well enabled to do their jobs are 21 percent more likely to exceed performance expectations.
- Retention: Among employees scoring low on engagement and enablement across Korn Ferry’s global employee opinion database, 45 percent intend to leave their current employers in the next two years. By contrast, just 8 percent of highly engaged and enabled employees express an intent to depart within 24 months.
Royal says that equipping employees to do their jobs well and empowering them to make their own decisions commonly does not require big investments and structural changes. For managers, it typically involves attention and focus.
“It’s important that managers help pressured employees prioritize tasks and pull away non-essential work so they can achieve what matters most,” said Royal. “Likewise, they need to clarify the decisions employees are empowered to make, to allow them to take control of their work and be more innovative with clear freedom to act.”
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We help clients synchronize strategy and talent to drive superior performance. We work with organizations to design their structures, roles, and responsibilities. We help them hire the right people to bring their strategy to life. And we advise them on how to reward, develop, and motivate their people.
Source: Korn Ferry
Released April 25, 2019