The HŪMNZ Element: Issue 02

🌟 Editor's Note

New data shows employee engagement boosts earnings, productivity, and retention, and neglect costs operators real money.

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Employee engagement is more than a feel-good metric — it is a proven lever for profitability. Companies with highly engaged workforces consistently outperform peers on earnings, productivity, and retention, while disengagement erodes EBITDA through turnover, absenteeism, and lost customer loyalty. For operators, this week’s evidence underscores that engagement initiatives are not discretionary spend but strategic investment.

Two anchor studies demonstrate the earnings impact: Gallup’s engagement research links strong cultures to 23% higher profitability and lower turnover, while a recent ROI analysis shows highly engaged firms outperform competitors by 147% in earnings per share. Supporting sources reinforce this case: platform data from Culture Amp quantifies a $963K profitability lift from engagement programs, and WorkInstitute frames retention failures as fiduciary risk. Together, these signals highlight that engagement should sit at the center of strategy, not the margins of HR.

Engagement directly drives EPS and discretionary effort.

• Evidence: InBusinessPHX reports that companies with highly engaged employees outperform peers by 147% in earnings per share and see 40% more discretionary effort (source).

• Implication: Engagement investment links directly to EBITDA, not just employee satisfaction.

• Action: Benchmark engagement scores against industry peers.

Gallup shows engagement boosts profitability, retention, and productivity.

• Evidence: Gallup data shows highly engaged units achieve 23% higher profitability, 78% less absenteeism, and 14% more productivity (source).

• Implication: Engagement is a multi-factor driver of financial and operational performance.

• Action: Tie manager KPIs directly to engagement metrics.

Culture Amp finds engagement programs raise profitability by 21%.

• Evidence: Culture Amp analysis shows engaged companies are 21% more profitable; organizations using its programs estimated a $963K boost in profitability (source).

• Implication: Structured programs yield measurable, short-term financial returns.

• Action: Pilot engagement initiatives with ROI tracking.

Retention failures represent fiduciary risk, not just HR shortfall.

• Evidence: WorkInstitute’s 2025 Retention Report stresses unmanaged turnover as a financial and fiduciary failure requiring proactive accountability (source).

• Implication: Investors and boards will increasingly scrutinize turnover costs.

• Action: Report retention as a material risk in board updates.

Stat of the Week

23% — Profitability boost among highly engaged business units (Gallup).
Source: Gallup

Until next time,

The HŪMNZ Element - Bi-Weekly Pulse

Forward this briefing to your CEO, CFO, or CHRO! Engagement belongs in the EBITDA discussion.