Key to Growing Sales and Earnings? A Motivated and Empowered Workforce, According to Korn Ferry Study
April 25 2019 - 8:00AM
Business Wire
- Study Shows Companies with Highly Motivated
Employees See Nearly Double the Growth of Sales and Earnings Per
Share -
Creating a culture where employees are highly motivated and well
supported in doing their jobs effectively is not only good for
employees, it’s good for the bottom line. That according to a new
Korn Ferry (NYSE:KFY) analysis of employee survey data from more
than 400 companies spanning multiple industries globally.
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
on engagement saw nearly double the 5-year EPS growth rates
of 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 rates of 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 Mark
Royal. “Organizations that match the ‘want to’ behind performance
with an equally strong ‘can do’ consistently see the best
results.”
Korn Ferry researchers also found a strong relationship between
engaged and enabled employees and retention and performance.
- 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.”
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We help
clients synchronize strategy and talent to drive superior
performance. We work with organizations to design their structures,
roles, and responsibilities. We help them hire the right people to
bring their strategy to life. And we advise them on how to reward,
develop, and motivate their people.
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Tracy Kurschner612.309.3957Tracy.Kurschner@kornferry.com
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