— 3 min read

According to Gallup, there are four human capital strategies which combined can add up to 59% more growth in revenue per employee. Each strategy has been widely tested and proven effective on its own. We at Weekdone aim to track and increase employee progress, therefore we would like to share the findings of the Gallup report: State of the American Manager – Analytics and Advice for Leaders. You can find the infographic below.

What is additive effect?

Term that initially comes from biological and chemical research states that each element plays a unique role and has an added scientific value in predicting the outcome. Furthermore, Gallup discovered that there are 4 human capital strategies, which companies are not using for growth.

Great Managers

Managers are the most critical part out of the 4 strategies, because talented managers attract and engage talented employees. They drive outcomes, overcome adversity and build strong relationships. Therefore, naturally talented manager can achieve 27% higher growth in revenue per employee than average.

Companies pick the wrong manager 82% of the time, because they are using the wrong criteria. Instead of hiring candidates based on their specific talent to manage others, companies tend to choose candidates based on years of seniority or standout performance as an individual contributor.

Talented Employees

Besides great managers there is room to improve in selecting the right individual contributors. Selecting naturally talented employees can increase revenue per employee by 6%. In addition, talented employees increase productivity and customer engagement.

Companies tend to concentrate on candidates' education, skills and work experience. Although, Gallup recommends to hire and develop candidates that have the right natural talent to excel in their role.

Engaged Workforce

Disengaged employees are estimated to cost the U.S. between 450-550 billion dollars per year. In order to keep your employees engaged, it is recommended to develop an employee development plan that includes strategy, great communication and accountability aligned scientifically tested metrics and performance outcomes.

These engagement efforts can lead up to a 18% higher growth in revenue per employee. Moreover, improved productivity, profitability, quality and customer ratings.

Focus on strengths

Companies can maximize their human capital by helping employees identify their strengths. When teams learn and focus on their strengths every day, their productivity produces up to 8% higher growth in revenue per employee. Furthermore, when focusing on strengths 61% workers are more engaged.

In order to tap into the 59% growth potential, we urge you to implement an assessment system like Weekdone to pair top managers with high-potential employees.

Untapped Growth Potential infographic