Can Changes In Employee Engagement Fortell Movement In The Economy?

24 Aug


My friends at Quantum Workplace think there’s substance to this question. At their The Science of Work blog earlier this month we find their most recent post on the topic:

Our June 30 blog post predicted July would be an “up” month for the Dow Jones Industrial Average. And “up” was an understatement as we saw the stock index climb 8.6% in a single month. That improves the record of our linkage analysis between our Employee Engagement Index and the Dow–successfully predicting movements in 12 of the last 15 months.

Unfortunately our Engagement Index showed a slight decline between April and March. Due to the 4-month lag in our model, we’re expecting a corresponding decline in the Dow for August.

CNBC, are you listening?

The theory behind this is interesting– if we’re more engaged as a country, for example, and four months later our “extra effort” shows up in improved company performane as measured by movement in the Dow Jones.

We know there is a relationship between employee engagment and business performance at an individual company level– could it translate on a “macro” level?

Stay tuned!

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