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Low Cost Employee Perks that won't punish your bottom line

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Lessons of the Square Watermelon

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Maybe you should ask your employees!

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Increasing Employee Engagement

Up until now there have not been any quantifiable financial benefits associated with increasing Employee Engagement, which has meant that this key success driver has been largely ignored by executives.

In recent studies by The Forum, the benefits associated with increasing Employee Engagement were even greater than anyone previously thought:

"...research found that companies with highly engaged employees have lower staff turnover rates, lower absenteeism, higher customer satisfaction and loyalty."

"Among the findings were that among the companies with high levels of employee engagement, operating income improved by 19.2% in the 12 months, while companies with low levels of engagement saw their operating income decline by 32.7%."

"Further, over the same period, the more highly engaged group of companies saw its net income rise by 13.7%, versus a 3.8% decline for peer companies."

"In yet another measure, earnings/share (EPS) rose by 27.8% among the companies with highly engaged employees, this compares to an EPS decline of 11.2% for the other analysed companies."


Strategically minded executives must embrace a radical idea: changing financial-performance metrics to focus on returns on talent rather than returns on capital alone.
With a proven direct relationship between Employee Engagement and organisational productivity and profitability, every business owner and executive should ensure that this economic driver is not only included in the organisational KPIs but also the KPIs for every individual with people management responsibilities.

The eight key drivers for employee engagement are:

1. Trust and Integrity
(How well managers communicate and 'walk the talk')

2. Nature of the Job
(Is the job mentally stimulating day-to-day?)

3. Line of Sight between Employee Performance and Company Performance
(Does the employee understand how their work contributes to the company's performance?)

4. Career Growth Opportunities
(Are there future opportunities for growth?)

5. Pride about the Company
(How much self-esteem does the employee feel by being associated with their company?)

6. Co-workers/Team Members
(Interpersonal relationships significantly influence one's level of engagement)

7. Employee Development
(Is the company making an effort to develop the employee's skills?)

8. Relationship with one's Manager
(Does the employee value his or her relationship with his or her manager?)

Profiles International has the recruitment and performance management tools to directly improve the these key drivers, especially the most important driver being “the direct relationship with one’s manager”.


Download “The Economic Case for People Performance Management and Measurement” article.