The Rage to Engage

Giving attention to workers can pay off as much as pay

Ann States for TIME

Max Caldwell and Julie Gebauer, from left, helped J&J's Kuschel lead a management makeover.

It's natural to want your employees to be happy. When people come to work with a spring in their step, chances are they do their jobs with more gusto, stick around an hour longer, go that proverbial extra mile--all of which boosts productivity and filters to the bottom line. Right?

Yes, says the burgeoning field of employee engagement, a movement that aims to quantify what, exactly, a company gets when it puts money into bonding with its workers. Consultancies such as Towers Perrin, Watson Wyatt, Hewitt Associates and the Gallup Organization measure how "engaged" workers are and then counsel companies on...

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