Measuring the Impact of Employee Engagement on Your Stock Price

Organizations make major investments to recruit, train, motivate and retain an exceptional workforce. That’s important because according to The Public Affairs Pulse survey, conducted by Princeton Survey Research Associates International, one-third of Americans form their view of a company’s brand based on their interactions with the company’s employees. That means employee’s attitudes and performance can impact a purchasing decision, which can affect a company’s stock price.

If you’re a publicly traded company, here are five tips to consider when calculating the return on your investment in your human capital:

1. Pay close attention to employees’ evaluations of managers and leaders

Managers wield huge influence in employees’ job satisfaction. An inspiring and supportive manager can drive employee performance, while a punitive, callous boss creates ill will and attrition, which can be costly in terms of recruiting a replacement. Give employees the freedom to evaluate their managers openly and anonymously to identify who your company’s heroes really are.

2. Make sure customer satisfaction surveys align with employee performance reports

When customer satisfaction surveys are excellent, it’s likely that employee performance reports will concur. But sometimes customers may complain about employee service and employee performance reports give an entirely different picture. Check to see both sides of the story to get a balanced view of what’s really going on.

3. Ask employees what kind of benefits they really want

Employee benefits such as health insurance and paid sick leave may be standard, but many employers offer other options including variable work hours, job sharing, and childcare allowances. Asking the majority of employees the kind of benefits they want may help manage benefit budgets by eliminating unwanted options.

4. Look for the hidden reasons people are leaving

Employees may be embarrassed or too angry to offer useful information during an exit interview. It’s important to follow up after an employee leaves to get clarity that can provide future guidance. Look for common issues when employees under the same manager quit. Consider personal issues such as workplace bullying or harassment.

5. Discount Social Media comments and reviews

Social media sites such as Twitter, Glassdoor and Indeed offer employees and customers opportunities to praise or complain about experiences with companies. While this new access to commentary can be enlightening, be wary. Research reveals that people who post on sites represent the extremes of positive and negative. Rarely do those who make up the greater happy middle take the time to post.

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