The New Performance Equation in the Age of AI
Clear communication between management and the workforce boosts profits, increases employee retention and prepares organizations for future growth. Read this Microsoft Work Trend Index Special Report to see how next-generation AI can help employee engagement and help organizations prepare their workforces in the years ahead.
Importance of Employee Engagement
Research indicates that organizations that prioritize employee engagement during economic uncertainty perform significantly better financially. In fact, companies with highly engaged employees outperformed the S&P 500 by the end of the year. Each additional point of engagement reported by employees correlates with an average increase of $46,511 in market capitalization per employee.
Role of Communication in Engagement
Clear communication and well-defined goals are essential for unlocking employee engagement. Employees at highly engaged organizations are 46% more likely to view their companies as strong communicators and 37% more likely to express confidence in leadership. Conversely, poor communication can lead to higher turnover rates, with employees who feel their company communicates poorly being twice as likely to leave.
Building a Feedback System
To maintain employee engagement, organizations need to implement a robust feedback system. Employees at highly engaged companies are 40% more likely to believe their feedback will lead to action. A feedback flywheel, which combines employee insights with behavioral data, allows organizations to continuously improve and respond to employee needs effectively.

The New Performance Equation in the Age of AI
published by Axelliant
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