EMOTIONAL THEME: Attrition
While 66% of actively engaged employees reported that they had no plans to leave their company, only3% of them were actively looking, compared to 12% and 31% respectively, for actively and passively disengaged employees .
Drawing a comparison between the extreme levels of engagement showed that actively engaged employees were :
- 87% less likely to leave their companies than their disengaged counterparts
- 4 times less likely to leave than the passively engaged
Employee Engagement can be further sub-categorised under Emotional and Transactional  where Emotional engagement is four times more valuable than Transactional in driving employee effort. While competitive compensation and benefits packages are crucial to attracting and retaining skills , emotionally engaged employees deliver an increase in performance of up to 20% compared to 9% for the transactional engaged employee .
Superimposed on this is that the attrition rates are dependent on the length of service of the employee. Within the Financial Sector, the Millennial generation has a rate of attrition at 22% whilst for Gen X it is 23% while for the rest of the UK the same generations are 12% and 15% respectively) .
Attrition has significant hidden costs such as loss of IP and a direct increase in operational costs. Whilst increasing the employee engagement by 1% will improve employee retention by 0.5%, which has a direct bearing on reducing the expenditure dedicated to employees by 5%. The bottom line effect is consquently improved by 0.7% of total revenues
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Potential Financial Benefits from Reduced Attrition on operational cost and loss of IP resulting from Improved Employee Engagement Towers Perrin European Talent Survey, 2004  Corporate Leadership Council  CIPD, 2012  Institute of Fiscal Studies, 2005  Corporate Executive Board, 2004  Director of Finance Online, 2010