It is critical to have an understanding of how an organization’s investment in its talent management initiatives is returned, whether it influences the bottom line or other performance measures of an organization. An understanding of this return on investment (ROI) enables an organization to align its efforts for human capital management initiatives with those that can have the most influence on performance outcomes. It also helps the organization to prioritize its resource allocation efforts.
Employee survey responses can provide a valuable lens through which business outcomes and ROI perspectives can be clarified.
A significant body of research has emerged over the last couple of decades documenting the linkage between organizational and leadership practices and important business outcomes such as customer satisfaction and business performance. The more an organization displays a strong orientation toward serving the customer, places a clear emphasis on the quality of products and services, verifies that employees are well trained, and involves them in decision making, the more aligned employees are to the goals of the organization, the more cooperative their teamwork, the less likely they are to voluntarily resign, and the higher their engagement. Under these conditions, they are better positioned to deliver the organization’s value proposition and thus achieve organizational goals.
Studies show that improvements in employee engagement produce measurable improvements in business metrics. Read this white paper to learn why the employee engagement construct is so important to business leaders today.
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