This article originally appeared on Livemint.com.

With increased optimism of an economic upturn in the coming months, will companies be able to fully tap the opportunities afforded by it? Outperforming and winning in the marketplace depends on retaining and attracting the right talent. However, this is easier said than done.

Ultimately, it boils down to employee engagement. Surveys show that there is a strong correlation between employee engagement and customer advocacy (click to see figure). Companies must make employees passionate promoters of their workplace, who will put in the extra effort that creates superior experiences for customers and, in turn, superior financial returns for the firm. Research validates the point, showing that companies with high employee engagement grow up to 2.5 times faster than those with low engagement levels.

A few years ago, a team at Apple Inc. analysed customer and employee feedback from its stores. They discovered that stores which regularly did well on employee engagement ranked high on customer loyalty, while the reverse was also true. The team also studied customer responses to understand the reasons for the enthusiasm of loyal customers. While one would expect Apple’s products or store design to top the list, they were surprised to see the most common reason that loyal customers gave for their happiness was the way store employees treated them.

So how do you know whether your employees are truly engaged?

Read more at Livemint.com