According to a new analysis of data from Dynamic Signal, the Employee Communication and Engagement platform, employee engagement increases significantly during the months of October and November— with October representing a 13 percent increase from September and a 6 percent increase from the monthly average across the year. The data suggests an uptick in business activity accompanying the beginning of Q4 and represents a prime opportunity for organizations to connect, engage, align, and empower employees while they have a receptive audience. The second-highest increase in employee engagement typically occurs in November, which sees a 4 percent higher engagement compared to the monthly average throughout the year.
A 2018 study by Gallup found that 53% of U.S. employees are not engaged at work. Dynamic Signal’s recent analysis examined data from more than 350 customer companies in 24 countries representing over 3 million employees and showed that October and November are the months when companies have the greatest opportunity to reach and effectively engage their employees. In addition to October’s small number of holidays, it comes on the heels of final summer vacations and the busy back-to-school season, and just ahead of the end-of-year holidays. As employees look towards meeting year-end goals, sales targets and business KPIs, October and November represent a critical time for companies to engage with their workforce and rally to meet objectives.
“We’ve long seen evidence from leading sources like Gallup that employee engagement is key to driving bottom-line business outcomes. For example, companies with highly engaged employees enjoy a higher return per share on equity. According to our 2019 Annual State of Employee Communication and Engagement Study, 63% percent of employees report that they’re ready to quit because of poor communication at work, which can lead to billions of dollars in turnover related costs,” said Joelle Kaufman, CRO of Dynamic Signal. “But when companies put a strategic focus on Employee Communication and Engagement, especially in these critical fall months when there’s truly a captive audience, we see the impact across every facet of the business.”
Dynamic Signal’s Employee Communication and Engagement platform enables companies to connect with employees wherever they are and on the devices they prefer. Research from Gallup has shown that companies with highly-engaged employees experience annual revenue growth that is significantly greater than companies with average employee engagement levels. When employees feel informed, connected, and understand how their work impacts the larger organization, productivity, customer satisfaction, and employee retention increase.
Additionally, Dynamic Signal’s 2019 Customer Impact Study showed that customers experienced an 18 percent increase in CEO approval ratings, and a 12 percent boost in company ratings on Glassdoor. Further research shows a correlation between CEO approval ratings and a 3-year return on equity, suggesting shareholders might do well to start thinking about Employee Communication and Engagement when they look at other performance metrics for a company.
“For many organizations, the end of the year means added urgency to accomplish business goals,” Kaufman said. “Our data shows that Employee Communication and Engagement is one of the most important factors that impact an organization's bottom line. This key period beginning in October represents a valuable opportunity for employers to engage their workers and align around goals, objectives and business outcomes.”