You want the truth??? You can’t handle the truth!!!!!
Actually, the truth is, we’re not handling this very well at all. And now we have hard core facts to back it up. Facts for what? Employee Engagement. Yes, that’s right: facts, data, numbers. Yes, for Employee Engagement. Don’t believe me? Well we have my good, smart friend Alana Dros to thank for doing the hard work of pulling this info together. Alana is the best technical HR person I’ve ever worked with. She is the STJ to my NFP, ying to my yang… You get the point. Anyway, here’s a few tid bits from a fabulous presentation she gave to a group of senior managers recently. She has graciously allowed me to share this gold with you. Read on…
- ROE – Return on Equity
- ROA – Return on Assets
- ROM – Operating Margin
According to the data, companies that effectively recognize excellence enjoy:
- an ROE more than three times higher than the return experienced by firms that do not.
- an ROA more than three times higher than the return experienced by firms that do not.
- and have six times higher operating margins than by firms that do not!
Here’s another take from June 2009 research by McKinsey: