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 -
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 onengagementsawnearly double the 5-year EPS growth ratesof 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 ratesof 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
- 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.”