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Does Engagement Predict Profit?

Sunday, February 8, 2015

It’s a commonly held belief that employee engagement levels are solid indicators of business performance. Hundreds of millions of dollars are spent annually on conducting engagement surveys, compiling and analyzing data, and constructing programs to bolster areas of engagement that score poorly. It makes sense to many managers that engagement programs will lead to an increase in real, actual business performance, but often this sense of control is misplaced. Talent Analytics Corp. argues that for many reasons, saying there is a direct correlation between engagement and business performance is dangerous. Many make the assumption that engagement levels drive business key performance indicators (KPIs), but can’t really prove it. Models can be built to predict engagement based on management methods, compensation, or demographics, but all these models really do is predict the outcome of a survey. It makes more sense to build a predictive model based on actual KPIs instead, according to Greta Roberts, Talent Analytics CEO. 

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