The following case study was provided as part of the evidence for the effectiveness of employee engagement strategies in improving performance, productivity and, in the private sector profitability. It has been used cumulatively with other submissions compiled by many leading companies and organisations to leave little room for doubt about the statistical importance of engaging employees.
This particular case study is an additional support to The Evidence Paper
AMC Entertainment began in the 1920s, and is now the second largest theatre company in the US. It owns approximately 380 theatres with 5300 screens across the US, Hong Kong, Canada, France and the UK. AMC Entertainment focuses on innovation, talent & engagement of associates, and overall guest experience. Its employees share the goal to ‘make smiles happen’.
The organisational structure of AMC relies on top quality general managers at the core of each theatre. The general managers are responsible for a wide range of business metrics, including revenue, profitability and guest satisfaction. They are also in charge of hiring the right teams and supporting employee engagement.
Kenexa’s study supported AMC’s hypothesis that improvements in employee engagement could have a positive effect on guest satisfaction and in turn, sales and profit. The study illustrated that highly engaged employees had higher per capita revenues, as well as rapid revenue growth for the theatre itself. AMC and Kenexa also found that high employee engagement significantly reduced theatre turnover rates, some seeing improvements of over 7%. The turnover reduction resulted in millions of dollars of savings for AMC.
As a result of the study, AMC have implemented a new employee engagement programme across the entire organisation. The programme has seen engagement scores increase by up to 18%, whilst guest satisfaction ratings have risen from 43.6 to 48.1.