The Engaged Company Stock Index is a relatively new term in the business world, but the power of this Index is undeniable; especially as it relates to how overall engagement affects an organization's bottom line.
The Engaged Company Stock Index was conceptualized by the Enterprise Engagement Alliance in 2012. The Engaged Company Stock Index has similarities to the traditional stock market, like the S&P 500, but it's functionality is to connect the impact of companies who retain high levels of customer, employee, and community engagement. Using the Good Company Index, which is developed by McBassi & Company, the Engaged Company Stock Index provides a cumulative score, much like other indices, which can be used to track long-term business performance.
Since its inception on October 1st, 2012, the Engaged Company Stock Index has outperformed companies listed on the S&P 500 but a staggering 22.30 percentage points! Engaged companies breed high-performance teams, appreciate and recognize their employees for a job well done, and provide their employees the tools to exceed quality and productivity standards. By using the basic components of engagement, organizations enjoy a positive company culture, lower turnover, fully engaged employees, and a forward-thinking company culture. More, an organization's bottom line is positively affected.
Currently, there are more than 40 companies listed on the Engaged Company Stock Index - ranging from airlines to pharmaceutical companies. A sampling of those listed on the Engaged Company Stock Index include: Costco, PepsiCo, General Mills, Alcoa, Bristol-Myers Squibb, and Rockwell Automation. To see the complete list, please click here.
In short, employee engagement can revolutionize your company. According to Gallup's annual report, State of the American Workplace, companies that are highly engaged experience 70% fewer safety incidents than their peers with low levels of engagement. And, that's just the tip of the iceberg. The report goes on to find that engaged companies have 20% higher sales, 21% higher profitability, and up to 17% higher productivity. If you're curious as to how your organization can improve with employee engagement, please reach out. We're here to help.