We’ve heard from HR professionals, process improvement managers and other business leaders that it is usually pretty easy to get management teams excited about improving the company’s employee feedback process. Getting them to commit to investing in employee feedback solutions, however, can prove to be more difficult. People quickly get that employee feedback is “good,” but they have more trouble quantifying it’s value. Fortunately study after study has been able to quantify the importance of employee engagement and feedback, so there are some pretty amazing statistics that help make the case for employee feedback solutions.
High Levels of Employee Engagement can Boost Revenue 2.5x.
That astonishing finding was part of a Hey Group study that also found that engaged and enabled employees are 50% more likely to outperform expectations. Employee feedback solutions provide structure to employee engagement and enablement.
88% of Engaged Employees Understand How Their Contribution Relates to Business Goals
The Towers Watson Global Workforce Study looked at how engaged and disengaged employees differ and uncovered some of the reasons employees become less engaged. Having a clear understanding and timely feedback about how the individual is impacting the company is a clear driver of engagement.
80% of Employees Dissatisfied with their Direct Manager are Disengaged
The relationship between an employee and their direct supervisor consistently emerges as the key to employee engagement. Employee feedback solutions strengthen this relationship and provide value to employees and managers alike. The 80% statistic comes from the Bureau of National Affairs, which also found the next one.
$11 Billion is Lost Annually to Employee Turnover
Employee turnover is a quantifiable cost that is often directly related to poor feedback systems. In fact, one researcher found that too little feedback and coaching was the third most common reason that employees leave companies.
Only 39% of Employees Think Senior Leadership Does a Good Job of Developing Future Leaders
The Towers Watson study also looked at employees views on senior leadership and found a significant gap in the opinions of engaged and disengaged employees. In fact, only 18% of disengaged employees feel that senior leadership has a sincere interest in their well-being.
The math makes it clear that there is room for employee feedback solutions to help build mutual trust, increase engagement, improve retention and empower employees to contribute to business goals.