About Our Engagement Ratings
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- About Our Engagement Ratings
Engagement ratings, or indicators of a company’s current performance and future potential, have become the standard for selecting companies.
Engagement ratings indicate the level of employee engagement based on a score compiled from quantitative data on employees’ affinity with their employers.* These ratings provide a new standard for assessing a company’s current performance and prospects. These ratings are also used by jobseekers to choose which companies to apply to, as well as investors in capital markets to understand the outlook of companies to invest in. Within the products and services market, engagement ratings are a useful tool for determining which companies have employees that are motivated to provide quality goods and services to consumers.
*We define it as the degree of mutual understanding and affinity between a company and its employees.
Details of the Engagement Ratings
The engagement rating is a rating index for the engagement score (ES), which quantifies the level of engagement (mutual understanding and affinity) between a company and its employees.
We calculate the ES as a deviation value based on the results of our originally developed organizational diagnosis survey, and define the ER as a ranking of 11 levels according to the ES results.
The Link and Motivation Group periodically carries out organizational assessment surveys using Motivation Cloud, our cloud service for improving employee engagement. The Engagement Rating logo includes the year the assessment survey on employee engagement was conducted.
Companies with high ratings are recognized as those that focus on organizational and human resource development.
About the 11 levels of ranking
What engagement ratings indicate
Engagement ratings are important indicators for choosing companies. A high rating indicates that many of a company’s employees have high levels of affinity with the company, job satisfaction, and motivation to provide services. A company with a high rating has good potential to grow over the medium and long terms.
Companies with high engagement ratings have a competitive advantage in these markets:
How engagement ratings are viewed in the marketplace
(1) From the perspective of the labor market (jobseekers),
the company has many employees who feel satisfied with their work.
The higher the engagement rating, the higher the degree of affinity between the company and its employees, and the more satisfied employees are with their work.
(2) From the perspective of shareholders and investors in capital markets
Companies with potential to improve their financial performance over the medium and long terms are better targets for investment
Our research, conducted jointly with Keio University, has found a correlation between a company’s engagement rating and the operating profit margin. This data was used in a study by the Ministry of Economy, Trade and Industry entitled Report on the Study Group on Improvement of Sustainable Corporate Value and Human Capital.
Investors can select companies to invest in based on their engagement ratings, as higher ratings indicate that a company’s financial performance will more likely improve over the medium and long terms.
(3) From the perspective of consumers in the product and services market
Companies whose employees are actively providing high-quality products and services are more attractive
Consumers can choose which companies to purchase products and services from based on their engagement ratings; higher ratings indicate that more employees are providing high-quality products and services.