How Employee Engagement Actually Drives Stock Price

If you have not yet bought into the idea that employee engagement links directly and positively to business performance…have a look at the quote below from Josh Bersin’s post early this year:

The bottom line here is this: while most financial professionals and investors have very little understanding of leadership, training, and human resources strategies, they do understand the concepts of employee satisfaction and turnover. And with a tool like out there (and I expect many more of these to come), your employee engagement will now become a very direct driver of stock price and your ability to attract talent.

Employee engagement is a complex topic, but one that cannot be ignored. It is driven by leadership, management, human resources, learning, and a variety of important cultural strategies. In the coming year, if you work for a public company, do not be surprised if you hear from your CFO or investor relations team asking you how they can help you improve employee engagement to drive higher stock price. One strategy that may be useful is taking advantage of Together workplace mentoring to show a commitment to helping your employees grow.

From my perspective, while there are plenty of research studies that show the connection between employee engagement and bottom line performance, none make the point so clear as Josh Bersin does in this post. Take this information up to the top of the house and make sure it gets on the discussion table!

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