What The Research Is Showing

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Global Human Capital Trends 2015, Deloitte University Press

In this extensive survey of business leaders, 87 percent of respondents indicated that culture and engagement are “important” and 50 percent responded “very important.” In the very same survey, more than one fifth of respondents indicate having little to no effective program to address culture and engagement.

%

Business Leaders Who Say Culture & Engagement Are Important

%

No Effective Program For Culture & Engagement

State of the Global Workplace Report, Gallup 2013

This ongoing study of employee engagement shows that merely 13 percent of workers worldwide feel fully engaged in their work, 24 percent are actively disengaged, and 63 percent are simply not engaged.

2014 Worldwide Employee Engagement

  • Engaged 13%
  • Not Engaged 63%
  • Actively Disengaged 24%

2014 U.S. Employee Engagement

  • Engaged 31.5%
  • Not Engaged 51%
  • Actively Disengaged 17.5%

There Are Significant Business Costs to Replacing Employees, Center For American Process, 2012

This study shows that replacing employees who leave voluntarily costs at least one-fifth their annual salary, when factoring for recruitment costs, loss of productivity, training and learning curve time.

%

Cost to Replace Employees As Percentage of Annual Salary

Great Places To Work, 2014

Great Places To Work has collated thirty years of research on culture and engagement to draw startling correlations between companies with strong cultures and engaged workforces and financial performance.

Journal of Organizational Behavior, April 2015

A six-year study of 95 franchise auto dealerships indicates that workplace culture positively effects performance, although generally takes two or more years for results to show. While this study indicates a strong correlation between culture and performance, it also concludes that the opposite is not true; that strong performance “is not enough to ensure a positive culture,” a Wall Street Journal article conveys.

Association of Accounting Technicians (AAT)

AAT surveyed 2,000 people in the UK and determined the eight of ten would turn down a sizable pay increase if it meant working in an unfavorable work environment. “The results showed people are the most important factor in work happiness, along with enjoying the role and getting on with the boss.”

2015 Workforce Purpose Index, Imperative

Just 28% of U.S. workers view their careers as a way of helping others and finding personal fulfillment, according to this study, which leaves 72% who see their work as a means to an end. The study goes on to say that of those who find deeper meaning in their work, are more engaged, form deeper relationships with coworkers, stay longer at companies, and are more likely to advocate for their companies.

  • Workers Who View Career As A Way Of Helping Others & Finding Personal Fulfillment 28%
  • Workers Who See Work As A Means To An End 72%

The growing body of research paints a vivid picture of the high cost of poor cultures, and the innovation and high performance that comes with strong cultures.

The Deloitte study sums it up well:
 

“Culture and engagement is no longer an arcane topic owned by HR. It is now an imperative for every leader and every executive in the organization.”

Learn About Glenn’s Book Shift

Shift: Indigenous Principles for Corporate Change

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