Researchers trying to discover whether North East businesses and their staff are getting the best out of each other are looking for firms to take part in a major study. Karen Dent discovers why employee engagement is such a hot topic.

ENSURING your employees are happy, engaged and enthusiastic about their work doesn’t just benefit them; detailed research shows it is good for business too.

The Macleod Report, carried out for the Government in 2009 on employee engagement, urged employers to take a closer look at the issue because there is a proven link between engaged staff and organisational performance.

It said that organisations should adopt employee engagement as a strategic policy – and when you look at the data, it’s not hard to see why.

Research suggests that engaged employees perform 20% more effectively, generate 19% more operating income and 16% more profit margin growth.

In addition, they are 59% more innovative and 70% more understanding of how to meet customer needs. They take 57% less sick leave and are 87% less likely to leave their employers.

The figures may sound impressive but the research also estimated that fewer than a quarter of employees are actively engaged – and more than 20% are actively disengaged.

Dr Johan Coetsee, a senior lecturer at Newcastle Business School, Northumbria University, defines employee engagement as “absorption, dedication and vigour”.

He and colleague Dr Michael Green, a fellow senior lecturer, are heading research into employee engagement in the North East.

The Newcastle Business School’s (NBS) Business Engagement Survey is looking for businesses to take part in an anonymous online questionnaire and in return, they will receive a detailed a report and suggestions of how to increase their employees’ engagement.

Dr Green says: “It is a very powerful issue when organisations look at what is going on within them with their employees. If it shows most employees are not engaged, there is a big issue. If they are not working to their full potential, they are missing a trick.”

The researchers are keen to hear from businesses of all sizes but especially want to hear from bigger organisations.

“We are very interested in larger organisations because the more feedback you get, the more statistically sound it is,” adds Green.

“That isn’t necessarily a precursor but if you’ve only got five employees, you know whether they are engaged or not. There is often a gap or a disconnect between senior management and employers.”