MEASURING

ENGAGEMENT
TO UNLOCK YOUR COMPANY’S
COMPETITIVE ADVANTAGE
Employee engagement is the extent to which employees are
motivated to contribute to organizational success and are
willing to apply discretionary effort to accomplishing tasks
important to the achievement of organizational goals.

– STRATEGIC EMPLOYEE SURVEYS, DR. JACK WILEY

INTRODUCTION

Few business leaders would consider investing in an asset or

changing a critical business process without first reviewing This eBook is for
relevant and objective data. However, many CEOs today lack HR leaders who need help
objective data on the variables that influence the performance making the business case
of their most valuable asset: the employees whose discretionary
efforts determine business success on a daily basis. for measuring employee
engagement and translating
This eBook is a primer for HR leaders who understand the survey results into action.
value of employee engagement, but need help in making the
business case for measuring employee engagement to unlock
competitive advantage. Contents are organized around seven
key questions:

• What factors influence employee engagement?

• What perceptions impact employee engagement levels?
Why should our company invest in measuring
• 
employee engagement?
How is employee experience different from
• 
employee engagement?
• What can we learn from benchmark comparisons?
How can we turn survey results into a
• 
competitive advantage?
• How can engagement improve our recruiting success?

1 Measuring Engagement to Unlock Your Company’s Competitive Advantage

WHAT FACTORS INFLUENCE
EMPLOYEE ENGAGEMENT?

Part of the challenge associated with driving employee “Organizations that invest in practices that produce
engagement to higher levels stems from the fact that a precise high levels of employee engagement enjoy
definition of the concept remains elusive. Also inconsistent significantly higher levels of success as measured
are the differing perceptions—often advanced by competing
by the satisfaction of their customers, the earnings
practitioners—about what drives employee engagement and
how to measure it. they deliver to shareholders, and return on assets.”1
– Using Employee Opinions about Organizational
Despite these varying points of view, the scientific research Performance to Enhance Employee Engagement Surveys
definitively identifies four key drivers in a pragmatic and
proven blueprint for creating an engaged workforce in any
organization.

First, senior leaders must inspire trust and confidence in Four “musts” for creating an engaged workforce:
employees by consistently establishing, communicating,
and supporting the achievement of organizational objectives. 1. Senior leaders must inspire trust and
Second, managers must demonstrate respect and show confidence
appreciation for valuable employee contributions to team and
company success. Third, employees must enjoy and believe 2. Managers must recognize
in the work that they do, and find it intrinsically meaningful, employees for their contributions
challenging and satisfying. Lastly, employees must perceive 3. Employees must enjoy and believe
viable career development, growth and learning opportunities
in the work they do
within the organization in order to feel motivated to actively
participate in an engaged workforce. 4. Employees must perceive valuable
opportunities for career growth

2 M
 easuring Engagement to Unlock Your Company’s 1. People & Strategy; Vol. 36 Issue 4, p.38
Competitive Advantage
WHAT PERCEPTIONS IMPACT
EMPLOYEE ENGAGEMENT LEVELS?

Over the past 30 years, we’ve surveyed over 200,000 The Seven Dimensions of the
employees around the world, asking them, “What is the
most important thing you want from your employer?“
RESPECT Framework:
Time and again, the answers are the same. Across different RECOGNITION: A pat on the back–
countries, industries, and job roles, our research shows that
there are seven things that employees really want from their
R acknowledgment for a job well done–
from managers and the organization at large
organizations. Employees want exciting work, a chance to shine,
to be paid fairly, a clear path for their working future, positive
working conditions and to be told the truth.
E EXCITING WORK: A job that’s interesting,
challenging and fun

The Engage2Excel employee engagement survey methodology,

developed by leading engagement expert Dr. Jack Wiley, S SECURITY: Confidence that solid work and a
well-managed organization lead to job security
is summarized by the acronym RESPECT, which stands for
Recognition, Exciting Work, Security, Pay, Education & Career
Growth, Conditions, and Truth. Across all industries, 98% of our P PAY: Fair compensation for a day’s work
survey responses fall into one of these seven categories.
EDUCATION AND CAREER GROWTH:
Our research shows that companies in the top quartile of E Opportunities to develop skills over the course
being able to fulfill their employees’ values enjoy the following of a productive career
competitive advantages2:
C CONDITIONS: A well-equipped workplace that
is physically comfortable and socially inviting
• Customer Satisfaction Ratings: 6.4 percentage points higher
• Operating Margins: 5.5 percentage points higher
• Shareholder Return: 23 percentage points higher T TRUTH: Frank, honest and transparent
communication from managers and senior leaders

2. Based on analysis of 236 organizations representing 22% of the Fortune 500 in

manufacturing, retail, financial services, high-tech manufacturing and healthcare.

3 Measuring Engagement to Unlock Your Company’s Competitive Advantage

WHY SHOULD OUR COMPANY INVEST IN
MEASURING EMPLOYEE ENGAGEMENT?

When you research the business impact of employee

engagement, you’ll find an ocean of statistics. For Will your company benefit from an
example, PwC reports that companies with highly employee engagement survey?
engaged employees report:
REASONS TO REASONS TO
33% higher profits
INVEST RECONSIDER
51% lower voluntary turnover
2.5X higher performance-related business outcomes
Your leadership team
believes employee Improving employee
While these statistics are compelling, they don’t answer a more engagement is a critical engagement is not viewed
fundamental question: will your company benefit from investing enabler of organizational as a top priority
in employee engagement? performance

As with all forms of research, the real value in employee

research lies not just in the survey results, but in the actions Your company seeks a
scientifically validated You’re interested in
your company takes as a result of the research.
method for measuring engagement research
engagement that includes but not concerned about
Your HR department may be convinced of the need for
statistically relevant data statistical reliability
measuring engagement, but it is vital that you get the for benchmarking
support of your senior leadership team before fielding a
survey. This table provides a framework for evaluating your
company’s readiness for investing in a formal employee Your company is prepared There is a high likelihood
engagement survey. to take action based on that our company would
the survey results to drive conduct the survey and not
organizational change act on any of the results

4 Measuring Engagement to Unlock Your Company’s Competitive Advantage

HOW IS EMPLOYEE EXPERIENCE DIFFERENT
FROM EMPLOYEE ENGAGEMENT?

There is a significant increase in discussion within the HR

community concerning the topic of Employee Experience.
However, many HR professionals are confused and
wondering what the difference is between Employee
Engagement and Employee Experience.

While precise definitions of Employee Experience are still

taking shape, most of the activity in this area focuses on
making employee interactions more positive through pulse
surveys, wellness programs, perks and self-service tools, to
name a few.

These tools provide useful inputs for improving employee

experiences but lack the rigor, scientific validity and
benchmarking data of a formal employee engagement survey.
Such rigor, supported by decades of peer-reviewed research,
is essential in order to provide your leadership team with the
statistically relevant insights they need to drive action plans and
Measuring employee engagement
organization-wide change. provides a predictable, repeatable
and statistically relevant basis for
Cautionary Note: Ask potential engagement survey partners
to provide evidence on the statistical validity of their
making strategic business decisions.
methodologies before making a final selection decision.

5 Measuring Engagement to Unlock Your Company’s Competitive Advantage

WHAT CAN WE LEARN FROM
BENCHMARK COMPARISONS?

Business leaders today have access to an overwhelming

amount of research, information and data that can be used to
influence decision making. The problem is determining what
data is actionable.

Benchmark reports provide an objective context for evaluating

your company’s engagement strengths and weaknesses, and
they help senior leaders prioritize objectives for organizational
HOW DO
change. The following reports are vital for extracting strategic
value from your investment in employee engagement research:
ENGAGEMENT
LEVELS AT YOUR
Best-in-Class Companies: See how your company’s COMPANY
engagement scores compare to the highest performing COMPARE?
companies across all industries.

Industry Competitors: Engagement metrics vary widely

by sector. Industry benchmarks help leaders see how your
company stacks up against its peers.

Internal Benchmarks: Identify and compare levels of

excellence and opportunities for improvement for individual
departments or groups within your organization.

BEST-IN-CLASS INDUSTRY INTERNAL

COMPANIES COMPETITORS BENCHMARKS

6 Measuring Engagement to Unlock Your Company’s Competitive Advantage

HOW CAN WE TURN SURVEY RESULTS
INTO COMPETITIVE ADVANTAGE?

Discover Establish priorities Hold managers

your strengths and evaluate accountable for
& weaknesses root causes improvement

Benchmark comparisons reveal how Structured feedback sessions let Survey results and feedback sessions
your engagement levels stack up employees know their opinions provide managers with detailed
against industry peers and best- matter, enable managers to focus insights for building action plans.
in-class companies. This provides on key priorities for improvement This enables leadership to hold
insights into your competitive and help your leadership team managers accountable and drive
advantages and highlights understand root causes for why organization-wide change to increase
opportunities for improvement. employees feel the way they do. competitive advantage.

7 Measuring Engagement to Unlock Your Company’s Competitive Advantage

HOW CAN ENGAGEMENT HELP US
IMPROVE RECRUITING SUCCESS?

Your company’s ability to attract and retain highly engaged

employees is vital to building and sustaining competitive
advantage. In today’s war for talent, engagement plays a
powerful role that is often overlooked.

Redesigning your recruitment processes and onboarding

programs to foster greater engagement can significantly impact
acceptance rates, quality of hire, hiring manager satisfaction
and first-year retention rates. Consider the following research
findings from our survey of nearly 1,500 job seekers3:

Recruitment: The number-one reason cited by job seekers for

accepting a job offer is “being treated with dignity and respect
during the hiring process.”

Onboarding: More than two-thirds of job seekers say that their

experience on the first day of the job will impact their decision
to stay with the organization for more than a month.

Retention: Nearly one quarter (24%) of job seekers say that

“lack of recognition, appreciation, or respect” is the most
important reason that would cause them to leave their If engagement
current employer. begins on day one,
it’s too late.
3. Trendicators 2017 Report by Engage2Excel

8 Measuring Engagement to Unlock Your Company’s Competitive Advantage

 Strengthen your competitive advantage by increasing engagement
through a unique candidate and employee experience.

Employee Talent Employee

Recognition Acquisition Surveys

How can your company translate employee engagement into competitive advantage?
Engage2Excel helps you create a unique and engaging experience for employees from
pre-hire to retirement to improve talent acquisition, performance and retention.

Learn more about industry-leading employee engagement solutions

from Engage2Excel. Call 800.688.3024 or visit Engage2Excel.com.

© 2017 ENGAGE2EXCEL, INC. ALL RIGHTS RESERVED EB13.V1.0