Microsoft’s Work Pattern Index: Employee engagement pays off in productivity, stock rate


This brand-new Microsoft research report details the benefits of utilizing a feedback flywheel to keep staff members engaged

Microsoft logo is prominently displayed on the outside of a multi-story glass building.. Image: Pixabay Microsoft’s most current Work Trend Index report objectives to measure how staff member engagement impacts service outcomes. The outcomes of Microsoft’s research study are clear: The most engaged companies exceeded the S&P index, while the least engaged lagged behind it.

2022 wasn’t a good year for the stock exchange, as the economy was sluggish to improve while pandemic constraints were lifted, however those companies that worked to engage with their workers were two times as effective as those that didn’t. The Microsoft report information one way to engage with employees: through a feedback flywheel.

Dive to:

How does the survey define staff member engagement?

Microsoft’s research defines worker engagement as “the degree to which workers are empowered, energized, and invested to add to organizational success.”

It’s a beneficial definition, as it’s one that can be tracked using tools like Viva and Sparkle, together with the numerous language understanding tools in Azure Cognitive Providers, which can quickly extract belief patterns from natural language freeform responses to surveys.

What makes employees engaged?

Microsoft’s Work Trend Index report recommends workers are engaged by clear communication and distinct goals, where everyone in the organization knows what they are doing and why, as well as how to make changes and deal with tips when essential. It’s not a matter of management being available in, offering objectives and after that disappearing; an engaged labor force requires constant interaction. That demand for continuous interaction results in one of the more interesting principles in Microsoft’s report: the concept of the feedback flywheel.

What is a feedback flywheel?

Must-read CXO protection

A feedback flywheel is a method of using feedback loops to keep workers and management in a constant communication process, generating signals from across the organization to understand more than a handful of employee demands and remarks. Traditional feedback systems do not work with live data, so they don’t have access to assets and tools like employee belief or collaboration data.

By blending standard feedback tools with these brand-new information sources, it’s now possible for organizations to see how workers respond to brand-new programs, determining general engagement. By working to comprehend whether team member more than happy with management actions, management teams can tweak their reactions to help staff members understand their issues have actually been heard and acted on. The impacts can be substantial: A 40% increase in self-confidence in feedback systems is just the start, with employees 56% most likely to state processes enhance as an outcome of their remarks.

Feedback flywheels don’t require to be organization-wide. The tools developed into platforms like Microsoft Viva can work more granularly, enabling specific managers to establish keeping an eye on for their own groups. The underlying AI-based analysis tooling can be trained on more particular data, producing team-level metrics.

But there’s still the requirement to put the right procedures in location around your feedback tools. It’s all well and good to construct a feedback tracking system, however it will not have any value if your personnel doesn’t understand their feedback is being developed into genuine action. You require to have transparency, giving visibility into how you process feedback; make sure staff members know they are part of the procedure and their feedback does make tangible changes.

Why should C-level execs appreciate employee engagement?

Research study like this works due to the fact that it assists companies benchmark themselves against their peers, helping codify best practices and providing the metrics essential to measure results. By connecting those metrics directly to monetary results, Microsoft is pointing out the value of an engaged labor force to more than middle management and HR departments– an engaged labor force is something that should also be necessary to C-level executives and leaders who need their groups to deliver the productivity that’s crucial to company finances and development.

Study method

Microsoft’s latest Work Trend Index compared employee study actions across more than 3 million employees, 226 business (and their stock costs) and 17 industries for the entire of 2022. The results were compared to the overall performance of the S&P 500, showing how staff member engagement impacted business value (Figure A).

Figure A

This graph shows how employee engagement affected company value based on Microsoft's report data. This chart shows how employee engagement affected company worth. Image: Microsoft Microsoft’s Viva Glint tools were used to evaluate worker studies, looking for favorable belief across a number of areas. It was primarily utilized as a tracker for engaged staff members, as unengaged employees are most likely to have a low belief for their company. The resulting information was organized to show the labor forces with the most affordable and highest engagement, compared with the return on the business stock cost.


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