The link between employee engagement and financial performance is a strong one. Watson Wyatt data collected from around the world show that when engagement is high, so is financial performance.

Highly engaged employees — those who are committed and focused — are two-and-a-half times more likely to be top performers than their less-engaged peers. Companies with high-engagement employees have higher retention rates, which helps contain recruiting and training costs.

But what drives engagement? The 2007 Watson Wyatt WorkEurope™ survey found that the top three drivers of both engagement and retention among European employees are strategic direction and leadership, communication and customer focus. Tightly intertwined with these drivers are employee issues around trust and empowerment. The 2007 WorkEurope™ report examines these top drivers. It also investigates the impact of trust and empowerment on engagement and retention, and provides an insight into actions that will foster engagement and help companies tap the full potential of their employees.