Engagement falling fast: Study

Report links employee engagement and total shareholder return
By Amanda Silliker
|Canadian HR Reporter|Last Updated: 09/07/2010

The proportion of organizations with falling engagement scores has doubled over the past two years, according to a study by Hewitt Associates. Forty-six per cent of 900 organizations surveyed worldwide experienced a decline in engagement levels in the quarter ending June 2010, compared to 24 per cent in June 2008.

This is the largest decline Hewitt has observed since it began conducting employee engagement research 15 years ago.

“When organizations have to make adjustments in a difficult economy often involving layoffs, it creates a degree of uncertainty on a personal level and (for) the future of the business,” said Ted Emond, a senior consultant at Hewitt Associates in Toronto. “Those kinds of things affect how individuals look at their work environments, so a decline in engagement is logical.”