Workday and Cisco Drive Employee Engagement to Boost Profits
As major employers implement cost-saving measures amid economic uncertainty, companies like Workday and Cisco are taking a different approach by investing in their employees. This focus on employee engagement not only enhances job satisfaction but also directly contributes to the bottom line. Both companies have earned recognition on Newsweek’s America’s Greatest Companies list, which assesses workplace quality against financial performance.
The latest ratings reveal that organizations prioritizing employee well-being are also achieving impressive financial results. According to Fran Katsoudas, Cisco’s Chief People, Policy & Purpose Officer, “Focusing on people is how we grow, how we lead, and how we win.” She emphasizes that competitive benefits and development programs should be viewed as strategic investments rather than mere expenses.
Linking Employee Happiness to Business Success
At Workday, Chief Human Resources Officer Ashley Goldsmith echoes this sentiment, stating that a happy workforce translates to satisfied customers. “You’ll hear our founder say, ‘Show me a really unhappy worker who’s providing great customer service, and I’ll show you a miracle,'” Goldsmith noted. This perspective reinforces the idea that employee sentiment can significantly impact customer satisfaction, a metric that is crucial for business leaders.
Goldsmith highlights instances where low employee morale led to decreased productivity. After identifying areas of concern, management was able to implement strategies that improved sentiment and work conditions. “In a matter of a couple of months, it was a complete reversal on the sentiment of those employees,” she said.
To further bolster employee engagement, both companies have recognized the importance of supporting frontline and middle managers. “We invest a lot in people leaders and people managers because they have the greatest impact on an employee’s experience,” Goldsmith stated.
Understanding Turnover Costs and Retention Strategies
The financial implications of employee turnover are well understood in the corporate world. When an employee leaves, the costs associated with recruiting and onboarding a replacement can be substantial. Goldsmith points out that attrition has both hard and soft costs, including the loss of institutional knowledge and team dynamics.
Certain indicators, such as a slowdown in promotions or internal hiring, can signal a potential increase in turnover. Goldsmith notes that high-potential employees often leave at higher rates when they perceive a lack of career growth opportunities. To combat this trend, Workday has introduced programs aimed at fostering internal mobility and career development.
Both Workday and Cisco have invested in training related to emerging technologies, particularly in artificial intelligence. Cisco has seen a remarkable increase in employee upskilling, with over 35,000 employees trained in AI by June 2025, a 121% increase in just one year. Katsoudas believes that the ability to adapt and learn is essential for future leadership in any sector.
Workday has also encouraged employees to take on “gigs” in different areas of the company, allowing for skill development and increased engagement. Since its launch in January 2022, over 5,000 employees have participated in this initiative. Goldsmith reported that these employees show statistically significant improvements in engagement and lower attrition rates.
The evolving landscape of remote work post-COVID has prompted Workday to adopt a hybrid model. Employees are allowed to work remotely for up to 30 days each year, enabling flexibility while maintaining in-person collaboration. Goldsmith remarked that this approach has led to improved employee sentiment.
Ultimately, investments in employee support and development not only enhance individual experiences but also foster organizational growth. “Investing in people in this way isn’t just the right thing to do; it’s our strategy for durable growth,” Katsoudas concluded. Companies can leverage retention rates, customer satisfaction, and future growth as key performance indicators, reinforcing the connection between employee engagement and financial success.
