During the last 12 years, Gallup has built a database of employee satisfaction from 17 million participants. A database that large cuts across every industry, geography and market segment. More importantly, it cuts to the heart of human nature, providing insight into what motivates people and profits. In a recent report based on that database, Gallup provides information to answer an age-old chicken and egg question: Does higher job satisfaction drive firm profitability, or the other way around? To learn more, Consulting's One-on-One sat down with Jim Harter, Gallup's chief scientist for workplace and wellbeing research.
Consulting: What is the financial impact of employee engagement?
Harter: Our research found that for those companies whose employees' overall job satisfaction is in the top quartile, their profitability is 16 percent higher than those in the bottom quartile. That usually amounts to between one and four percentage points in margin.
Consulting: What's the connection between employee engagement and profit?
Hartner: A more engaged workforce doesn't directly cause higher profits.
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