Caterpillar, a leading manufacturer of construction and mining equipment, has successfully linked employee engagement to its business outcomes. The company utilised a data-driven approach to identify the key drivers of employee engagement and their impact on business performance. Caterpillar discovered that engaged employees were more productive, safer, and more likely to stay with the company.

In particular, Caterpillar found that a 1% increase in employee engagement resulted in a $167 million increase in operating profit. Similarly, a 1% increase in employee engagement led to a 3% decrease in safety incidents and a 4% decrease in intent to leave the company.

This data-driven approach allowed Caterpillar to focus on the areas that would have the most significant impact on its business outcomes. For instance, the company found that leadership effectiveness was the most crucial factor in driving employee engagement. In response, Caterpillar implemented leadership development programmes to improve this area.

Caterpillar’s approach demonstrates the power of using data to inform business decisions and the potential benefits of investing in employee engagement. It serves as a model for other businesses looking to improve their performance and profitability.

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