Human Resources
Best Employers Have Better Business Performance
About the Program Program Benefits Best Employers

Best Employers Have Better Business Performance

Our research proves that Best Employers drive consistent long-term performance through organisational cultures marked by effective leadership, high performance, a strong employer brand and ultimately by high employee engagement. Not only are these organisations well positioned to win the war for talent, but they are seeing better business results as well.

Aon Hewitt analysed 284 global organisations in the database and correlated 2010-2012 employee perceptions with 2012 financial performance on sales growth, operating margin and Total Shareholder Return (TSR). We compared three groups of organisations against the average organisation:

  • Bottom quartile engagement organisations (those with roughly half or less of their employees engaged)
  • Top quartile engagement organisations (those that have about 7 out of 10 employees engaged, but do not qualify as Best Employers) and
  • Best Employers (all of which not only top quartile engagement organisations but also have top quartile levels of leadership, performance culture and employer brand).

The results were compelling:

  • Bottom quartile engagement organisations perform worse than average on all financial indicators - particularly operating margin and TSR.
  • Organisations with top quartile engagement levels outperform the average organisation by 2 percentage points on operating margin, 4 percentage points on sales growth and 2 percentage points on TSR.
  • Best Employers drive twice as much incremental operating profit than organisations with high engagement alone.
  • To illustrate the impact of these results as shown in the graph, this means that for three separate $1B organisations (one average, one with top quartile engagement, and a Best Employer), the top quartile engagement organisation achieves $20M more in profitability than average, and the Best Employer achieves $40M more profitability than average.

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