The Engaged Company Stock Index tracks the long-term results of companies with high levels of customer, employee, and community engagement. Consisting of 45 companies, the Engaged Company Stock Index draws a direct correlation with high engagement scores and the organization’s stock performance. In fact, the Engaged Company portfolio has consistently outperformed the S&P 500 (including dividends) by 22.3 percentage points since October 2012.
Additionally, studies have also shown the positive connection between high levels of engagement and sales growth, lower costs of goods, and customer retention. It is clear that investing in a comprehensive employee engagement strategy makes good financial sense. By directly impacting other key business outcomes such as turnover, product quality, and productivity, organizations are able to increase the bottom line through strategic employee engagement and recognition initiatives.