Hewitt Analysis Shows Steady Decline in Global Employee Engagement Levels
A recent analysis by Hewitt Associates from July 29, 2010, reported half of organizations around the world saw a significant drop in employee engagement levels at the end of the June 2010 quarter — the largest decline Hewitt has observed in 15 years.
Hewitt shows a clear correlation between employee engagement levels and financial performance. Organizations with high levels of engagement (65% or more of employees are engaged) outperformed the total stock market index even in volatile economic conditions. During 2009, total shareholder return for these companies was 19% higher than the average total shareholder return. Conversely, companies with low engagement (where less than 40% of employees are engaged) had a total shareholder return that was 44% lower than the average.
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