Why Measure Employee Engagement using AER™?

AER™ Engagement Value Proposition

Employee Engagement and Customer Service

• Employee engagement is linked to higher customer service productivity and overall higher levels of customer satisfaction and customer loyalty. – The Conference Board, (2003), Pont (2004)

• Employee engagement impacts “customer engagement.” Customer engagement is the emotional and rational connections that customers have with a company and their subsequent discretionary purchasing and referral behaviors. – Bates (2004)

• Employee engagement is also linked to customer engagement even when the employees don’t have direct contact with the customer. This has implications on the value of employee engagement within R&D functions as well as the possible impact of employee engagement on creating a “brand” identity. – Oakley (2005)

Impact of Employee Engagement on Performance

• Individuals who are highly engaged perform significantly higher, individually (demonstrated in performance review scores and sales productivity). – CLC (2004), Bates (2004)

• Groups and teams with generally higher levels of engagement perform better on a team level (sales and overall customer satisfaction scores linked with group/sales team engagement scores). – Fleming (2005)

• Companies that have generally high employee engagement levels demonstrate better overall company performance (link between engagement, operating margin and profits). – Towers Perrin (2003), ISR (2003)

• One study demonstrated a longitudinal lead-lag in engagement and overall company performance). – Hewitt (2004)

Employee Engagement and Retention

• Multiple studies have connected individual levels of employee engagement with intentions to remain on the job – Towers Perrin (2003, 2005), The Conference Board (2006).

• Multiple studies have also linked overall levels of company employee engagement with overall turnover rates – The Conference Board (2003), CLC (2004), Pont (2004).

• Distinction identified between drivers that determine overall employee engagement (emotional drivers trump rational drivers), and drivers that lead to decisions to leave the company (emotional and rational drivers balanced) – CLC (2004), Towers Perrin (Europe) (2005).

Engagement Value Proposition

• Customer Satisfaction/Loyalty/Propensity to Repurchase/Referral Tendency

• Percent of Work Time Contributing to Work Objectives/Business Objectives and Positive Discretionary Effort

• Decreasing/Defending Voluntary Departures

• Fulfillment of the Brand Promise