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New Findings: Happy People Equal Happy Profits

Announcement posted by RedBalloon 18 Apr 2013

A highly engaged workforce is a highly productive workforce according to new RedBalloon report
17 April, 2013: Now in its third year, the RedBalloon and AltusQ Employee Engagement Capability Report adds weight to the argument that a highly engaged workforce is a highly productive workforce.

Estimates show that disengagement costs the nation $32 billion in lost productivity every year, and only 18 per cent of Australians love their work[i]. The Engagement Capability Report aims to address this issue by building on the wealth of knowledge surrounding employee engagement and providing insights into why organisations should invest to improve their engagement reality. 

The 2013 report found that organisations with the highest levels of engagement outperformed others in every single commercial metric - sales and turnover, percentage profit, productivity, staff retention, attracting talent, customer loyalty and satisfaction.

When compared to 2012 figures, the percentage of organisations with 80 per cent or greater employee engagement reporting increases across key commercial metrics was telling:
Productivity – 68.4% of organisations with 80 per cent or greater engagement reported an increase in this area
Customer satisfaction – 64.1%
Attracting talent – 63.2%
Customer loyalty – 63.2%
Percentage profit – 60.7%
Staff retention – 50.5%
Sales and turnover – 50.4%

On the other hand, the percentage of organisations with lower employee engagement (80 per cent or below) reporting no change or a decrease in these commercial metrics was just as noteworthy - staff retention (25.6 per cent decrease), percentage profit (21.5 per cent decrease) and sales and turnover (19.9 per cent decrease).

The ‘sick days taken’ finding is particularly telling, with 64 per cent of the lower performing organisations reporting an increase or no change in this metric, highlighting the tendency for disengaged employees to be absent more often than their engaged counterparts. 

According to RedBalloon Engagement Consultant James Wright, “It’s no coincidence that organisations with highly engaged employees have also seen an uplift in commercial metrics”.

“Employees deliver when their environment gives them the tools and space to flourish; and also recognises them for their efforts. 

“Importantly, in this economic climate, investing in employee engagement has a proven bottom line benefit, and most engagement strategies are extremely cost effective to implement. This is especially the case when considered alongside other costly options such as technology overhauls, identifying new revenue streams or product innovation.”

Other Key Findings:
1.Buddies. The difference between the top performers and the rest is that they know how to transfer strategy, processes and desired behaviours throughout their organisations. Think mentoring, buddying, coaching, recognition and internal networks that build a clear sense of purpose, well understood targets, strong recruitment, training and development programs. 

2.Spend. It is not a simple matter of “spend X to get Y”. The report shows organisations are far more likely to achieve a strong engagement outcome if their spend is at least $1000 per person per year. 50.3 per cent of those spending $1000 or more achieve engagement uplift, compared to only 29.4% of those spending less. Those with an engagement score of less than 80 per cent were also twice as likely to have cut their spend on engagement activities in the last 12 months. 

3.CEO. The research shows that CEOs in the top performing companies are more enthusiastic about employee engagement than the Leadership Team or even HR. Mixing enthusiasm with responsibility will create an employee engagement program that is led from the front, achieving better results. But for the best results, everyone needs to have ownership and enthusiasm for the employee engagement reality.

These findings were gathered by RedBalloon and AltusQ from 1550 respondents, representing organisations ranging in size from one employee to thousands. HR, CEO, leadership and management team members made up 72 per cent of respondents.

The Engagement Capabilities Report identifies a framework of 20 Core Organisational Capabilities[ii] that organisations measure themselves against according to the level of depth, understanding and mastery within their organisation. 


[1]Gallup Global Survey 2011 quoted in SMH 18.03.11
21) purpose, intent, cause 2) culture 3) commercial vision 4) innovation 5) brand energy 6) managing capacity and workload 7) functional structure/resource allocation 8) KPI 9) reward and recognition program 10) communication 11) coaching 12) managing expectations 13) work/life balance 14) compensation and benefits 15) recruitment 16) on boarding 17) performance management 18) developing people 19) decision making 20) effective meetings

- Ends -

For more information please contact:
Lauren Ashton, PR & Communications Specialist - 02 8755 0034 / 0404 136 765 / lauren@redballoon.com.au

About RedBalloon For Corporate
RedBalloon is Australia’s biggest experiential gifting retailer and 2010 Hewitt Best Employer with an engagement score of 90%= for the last four years. RedBalloon’s corporate team supports organisations large and small to develop reward and recognition strategies and non-cash incentive programs that drive engagement.

About AltusQ
AltusQ is a coaching firm like no other. With an energetic, practical and passionate team, AltusQ’s leadership and mentoring programs and business coaching creates greater choice for businesses and their people, stimulating stronger commercial returns and building robust cultural environments that attract and retain the best talent.