At The Business Portfolio (UK) Ltd we believe that people are fundamental to business success, for the past twenty years we’ve been developing a model and a methodology of working that embeds people development at the heart of business performance  and there’s a growing body of evidence and research that supports our approach. 


So don’t just take our word for it! Our report 'People are Fundamental to Business Performance' reviews the evidence that outlines why a business' employees are it's biggest asset.

are people fundamental to business performance?

To look at the proof in a bit more detail we have to work backwards from business performance.

Engagement

The world’s top-performing organizations understand that employee engagement is a force that drives business outcomes. David MacLeod (Engaging for Success 2009, Nailing the Evidence 2012) provides compelling qualitative and quantitative evidence:

  1. Organisations with high employee engagement levels outperform their low engagement counterparts in total shareholder returns and higher annual net income. The top 25% had twice the annual net income (profit attributable to shareholders) compared to the lowest quartile and returned seven times more to shareholders over a 5-year period than the lowest quartile (Kenexa research 2008).
  2. Companies with high and sustainable engagement levels had an average 1-year operating margin that was close to 3 times higher than those with lower engagement (Towers Watson 2012).
  3. Marks and Spencer’s research shows that over a four-year period stores with improving engagement had, on average, delivered £62 million more sales to the business every year than stores with declining engagement.
  4. Sainsbury’s have found clear link between higher levels of engagement and sales performance, with the level of colleague engagement contributing up to 15% of a store’s year on year growth.
  5. A Gallup study (2006) looking at data from over 23 thousand business units has demonstrated that those with the highest engagement scores (top 25%) averaged 18% higher productivity than those with the lowest engagement scores (bottom 25%).


If you would like to read the full 'People are Fundamental To Business Performance' report please complete the registration form.