The ROI on culture

So what about the relationship between culture and business performance?

In Aon Hewitt’s recent 2013 report on their Best Employer Awards they examined the impact of improving engagement upon revenue. A 5% improvement in engagement was associated with a 14% increase in profitability.

The University of Bath compiled a summary paper (Rayton, 2012) as part of a UK Government program called “Engage for Success”. The following includes some of the summarised findings:

• Kenexa (2008) reports that companies in the top quartile of engagement show twice the profitability of companies in the lowest quartile.

• Gallup (2006) reports that companies in the top quartile of engagement show 18% higher productivity and 39% fewer accidents of companies in the lowest quartile.

• Aon Hewitt (2012) reports that companies in the top quartile of engagement show half the level of absenteeism of companies in the lowest quartile.