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Engaging for success: Enhancing performance through employee engagement
24 In their evidence to our review, The Co-operative Group cited research from their
Talkback engagement and performance programme. The Group tracked levels of
engagement against store performance in its food retail estate in 2006 and 2007.
Although food retail stores are complex environments, and as many external factors
as internal can affect operational performance and success, the Group has evidence
of direct correlations between levels of employee engagement and store business
performance. An analysis of employee engagement in individual stores against key
business performance indicators, showed that where engagement improved by an
average of 5.24 points or more, the level of food wastage fell by £62.25 per period
per store, saving a total of £400,000 per annum. Where engagement scores rose by
between 0.6 points and 5.23 points, the level of wastage fell by £31.02 per period,
saving £200,000.
25 Results from Boots Great Place to Work Survey indicated that shops with the
highest engagement scores (72 per cent against 67 per cent) had lower absence
rates, lower turnover and a higher profit contribution (3 per cent higher than
targets). 67
Case Study
Freshfields Bruckhaus Deringer
Like many of its direct competitors, retention of talent was becoming a
significant issue for the business. Freshfields supports successful graduate
candidates for legal posts through one or two years of further training before
they join the organisation. During this period, the individuals generate no
income revenue, with the break-even point on Freshfields’ investment coming
at around two years after qualification. Freshfields were finding that despite
joining with high levels of commitment and energy, after around four years an
unacceptably high proportion of staff were choosing to leave.
From talking to staff, Freshfields realised that many felt that while they were
valued for their technical competence as lawyers they didn’t have as much
opportunity as they would have liked to get involved in the broader
development of the firm’s business. Freshfields addressed this by introducing a
number of measures, including creating the Associate Engagement Group
(AEG) which gives associate lawyers a greater say in decisions that impact
them. The group acts as an information and consultation conduit between the
partnership and the associates. It is now in its third year and continues to gain
prominence. Recent market conditions have obviously had an important
impact on staff retention, but Freshfields have seen improved metrics in
employee engagement since they introduced the AEG.
67
Health Work Wellbeing (2007). Organisational Case Studies – Boots [Online]. Available:
http://www.workingforhealth.gov.uk/Case-Studies/Organisations/Organisation-detail.aspxCaseStudyID=44
[accessed 30 June 2009]
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