Re: Return on engagement #value #engagement


 

Hello Martin - interesting proposal. 
You wrote:
However, I don’t see many organizations out there who are really inspired by the idea of measuring employee engagement - except maybe the armed forces - and use the somewhat fuzzy concept of “return on engagement”

Regarding measuring employee engagement, I would guess that every company in the Fortune 500 has an employee engagement program in place, and spends a good deal of time and money measuring it on an annual basis if not more frequently. 

As for quantifying the value of return on engagement (RoE), the easiest way to think about how employee engagement relates to profitability is along two dimensions:

1. Discretionary effort - engaged employees go above and beyond what's asked of them, thereby improving productivity and increasing the quality of their efforts. 

2. Intention to stay - engaged employees are less likely to actively search for work outside their current employer, leading to a reduction in employee turnover and resulting reduced recruiting and onboarding costs, and lost productivity due to new-hire ramp-up. 

As for making a direct connection between KM and EE, perhaps the reason you don't know of any companies that have made this connection is because no one has identified EE as a stated objective for a KM initiative. Certainly KM initiatives aimed at increasing collaboration, for instance, could be easily connected with increased EE. 

Good luck with your conference. 

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-Tom
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Tom Short Consulting
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