What Is Employee Engagement?
Employee engagement is the strength of the mental and emotional connection employees feel toward their work, their teams, and their organization.
Employee engagement is about positive attitudes and behaviours that lead to improved business outcomes. It involves employees feeling pride in working for an organization, being a great advocate for that organization to customers and users, going the extra mile on tasks they are given, and being innovative with how they work. Employee engagement also draws out a deeper commitment from employees so they are less likely to leave or take sick days off; it reduces accident rates; reduces conflicts/grievances; increases productivity levels; and encourages organization actions that are consistent with values/promises kept.
Why Is Employee Engagement Important?
1. Higher employee productivity
Engaged employees are 43% more productive than their peers. They are more likely to work diligently and expend discretionary effort in their jobs, have a greater sense of connection to the present and future of the organization, be less likely to turn over for other opportunities and provide higher customer satisfaction.
This increased productivity leads to lower absenteeism rates, fewer safety incidents in highly engaged workplaces, healthier employees who eat better and exercise more frequently, and ultimately a positive impact on the bottom line of organizations with highly engaged employees.
2. Increased customer satisfaction
Employee engagement affects customer satisfaction by improving the customer service people receive from your company. Employees who are highly engaged are more likely to care about customers and go above and beyond to ensure they have a great experience.
This results in higher levels of customer satisfaction as customers are more likely to feel valued, appreciated, and taken care of by your organization’s employees. Additionally, increased employee engagement can lead to upsells, referrals, and retention of customers since they will have a better experience overall with your company.
3. Increased profitability
Increased employee engagement can lead to an increase in a company’s revenue due to the increased productivity and quality of work produced by engaged employees.
This is because engaged employees are more committed to their work, have higher job satisfaction, feel appreciated by their employer, and are more likely to go the extra mile for their organization. All of these factors can lead to higher volumes of better quality work which in turn increases profitability for the company.
4. Reduced turnover cost
High employee engagement can reduce turnover costs because engaged employees are more likely to remain committed to their employer.
This leads to fewer disengaged employees, which reduces employee turnover and associated costs such as recruitment fees, training costs, lost productivity during the transition period, etc.
5. Increased product quality
Employee engagement can lead to higher product quality as engaged employees are more likely to go the extra mile. This increased effort can result in higher volumes of better-quality work, which can positively impact the company’s revenue. Additionally, studies have shown that employee engagement is linked to productivity, so workplaces with engaged employees are more likely to be more productive than those without engaged employees. Furthermore, job satisfaction is also associated with productivity since it affects how motivated an employee is at work.
6. Improved organizational performance
Employee engagement results in improved organizational performance, as it promotes higher sales, increased productivity, better customer service, and more.
7. Increased team cohesion
Employee engagement increases team cohesion because it creates positive company morale and encourages employees to make meaningful connections with their colleagues.
The result of this is that employees become more familiar with each of their co-workers, which fosters closer relationships and helps build a stronger team.
8. Improved communication and collaboration
Improved communication and collaboration can result in increased employee engagement because it helps build a strong bond between the company and its employees. When employees are aware of company goals, values, and vision, they become more enthusiastic about doing their best work. They also feel more connected to their co-workers through regular communication channels such as email, video calls, or conferences. Additionally, proper communication encourages employees to listen to each other’s ideas which leads to better collaboration overall. This results in greater productivity for teams that have open lines of communication between members who are actively listening to one another’s ideas or feedback on projects or tasks they’re working on together.
9. Increased employee motivation
Employee engagement increases employee motivation by making them feel satisfied with their contributions and impact. It also leads to overall happiness, which is good for company morale, productivity, and other aspects of life.
As a result of this increased motivation, employees are more inclined to take innovative risks, be creative and build their skills through seminars, mentorships, and courses. They are also motivated to do their best on every task they encounter in their job role.
10. Reduced stress and burnout
Employee engagement has been shown to reduce stress and burnout. This is due to the fact that when employees feel valued by their company, they become less stressed, engage more, and enjoy what they are doing. The Hay Group found that offices with engaged employees were up to 43% more productive due to higher job satisfaction.
The Statistics On Employee Engagement For 2023
1. 85% of employees are not engaged at work
Recent State of the Workplace research from Gallup indicates that many employees are not entirely committed to their jobs. 85% of workers are specifically either disengaged or actively disengaged. 67% of this category are disengaged workers who have no stake in the business’s success and only perform the bare minimum of duties. They are frequently referred to as “silent quitters” because, despite the fact that they may not say it outright, they are unlikely to go above and beyond in their profession. Employees who are actively disengaged, on the other hand, are not merely indifferent toward their workplace; rather, they are actively resentful of it. These individuals may act out their discontent, which could endanger the productivity of their co-workers.
2. Highly engaged employees are 87% less likely to leave their employer
Nearly three-quarters of US workers said they would consider quitting if the proper chance presented itself even if they weren’t currently looking for a new job. More than a third of workers in the US said they plan to leave their jobs by 2023. It’s not only about money when considering a job change; in fact, 71% of Gen Zers are willing to take a wage drop in exchange for more fulfilling work.
If workers are engaged at work, they are 87% less likely to quit, and the company mission is a key component of engagement. Unfortunately, 22% of workers feel wholly unconnected to the goals of their organization. Employers have a clear opportunity to foster a culture where employees feel valued and have a purpose in their job. Companies should invest in employee engagement to save costs and boost retention given that US employers spend $2.9 million every day seeking replacement personnel.
3. Disengaged employees cost an additional $3,400 for every $10,000 in salary
Employees that are disengaged perform worse than their engaged peers on a variety of levels. They had a 37% higher risk of taking time off from work, a higher absenteeism rate, and 18% lower productivity and profitability rates. A disengaged worker costs a company, on average, 34% of their annual pay, or $3,400 for every $10,000 they earn.
4. Companies with the highest rates of employee engagement are 21% more profitable
Employee engagement is a crucial component of business profitability. Compared to businesses with disengaged workers, highly engaged organizations are 21% more lucrative and 17% more productive. Because they are more creative, and effective, and have higher rates of client retention, engaged employees perform better than their counterparts. Unquestionably, employers that have high employee engagement are more likely to run successful, lucrative businesses.
A great illustration of how investing in employee experience and engagement may improve business performance is Gong, a revenue operations and intelligence company. Compared to the industry average of only 59%, Gong employees gave the company an incredible 92% rating for being a great place to work. Industry analysts have taken note of this good culture, as Gong was named a clear market leader by Forrester in 2022 after achieving the highest scores available across 13 distinct evaluation categories. In addition, Gong is rated as the best option in three of the four categories it is mentioned in on G2, a website that reviews enterprise software. These recognitions highlight the observable business advantages that can come from an encouraging and positive environment.
5. 69% of employees report that they would work harder if they felt more appreciated at work
Employee appreciation is important for both employees’ general job happiness and businesses’ capacity to retain motivated and high-performing staff. According to research, when employees receive frequent praise for their work, they are more likely to stick with the company and give their best work because they feel appreciated and motivated. Retaining top talent requires showing your appreciation to your staff.
Beyond major accomplishments, recognition can be as straightforward as complimenting a worker for their optimistic outlook, praising their work ethic, or pointing out areas where they can improve. The act of thanking employees need not be done in front of others. In actuality, 43% of respondents prefer to hear praise from their manager in person. Employee morale will be boosted and they’ll be motivated to perform more if bosses regularly check in with them, asking for feedback and praising their workers.
6. Strong company culture increases revenue 4x
In a lengthy research that lasted 11 years, businesses with strong corporate cultures saw revenue rise by 682%, compared to only 166% for businesses without such a culture. They discovered that an effective business culture places a high priority on workers, clients, and owners while also encouraging leadership across the board.
Making an environment that is both demanding and encouraging for employees is key to developing a good company culture. Profitability, employee retention, and employee engagement all rise in successful businesses. Employees are more inclined to be proactive in problem-solving, communicate their thoughts and opinions, and look for possibilities for collaboration if they have a strong feeling of belonging and purpose. Employers should therefore make promoting a positive business culture a top priority.
7. 89% of employees working for companies with wellness programs are engaged and happy with their job
The vast majority of US workers who are employed by a business that offers a wellness program say they are satisfied with their jobs and would recommend them to friends. Only 17% of workers would advocate for a company that is not dedicated to enhancing employee wellbeing.
A holistic wellness program that supports all aspects of well-being should be implemented by employers who wish to entice top personnel. Today’s job searchers are looking for organizations that prioritize various aspects of employee health and provide substantial perks because 67 percent of employees are not thriving in their overall well-being at work. Employers can differentiate themselves from the competition and become more appealing to job seekers by implementing an extensive wellness program.
8. Only 29% of employees are pleased with career advancement opportunities
Only 29% of employees are “very content” with the existing opportunities at their firm, according to a study, even though 41% of workers believe that these prospects are extremely important to overall job satisfaction. For effective employee engagement, it is crucial to offer training and resources for professional development.
Employers should think about giving new hires who want to climb the organizational ladder route maps. For younger generations, such as millennials, who value job growth chances highly, this is especially crucial. Employees will be encouraged to develop the necessary skills for success by having access to mentors and experts who can offer guidance and support their professional advancement.
How To Improve Employee Engagement
Step 1: Run a survey to gather employee engagement data
- Decide on the impact you want the survey to have, and work backward from there.
- Choose a survey type that is best suited for your organization and its employees, such as an employee satisfaction survey or an engagement questionnaire.
- Create a survey that is clear, concise, and easy to understand so that it gathers accurate data on employee engagement levels in your company.
- Distribute the survey to all employees via email or in-person interviews if necessary; encourage them to respond honestly so they can provide valuable feedback on how they feel about their workplace environment right now.
- Analyse the results of the survey by looking at trends over time and comparing them with industry benchmarks if available; this will help you identify areas of improvement quickly so you can take action quickly..
- Communicate the results of your employee engagement surveys regularly so everyone knows where they stand right now and what needs to be done moving forward.
Step 2: Know the key drivers of employee engagement
The key drivers of employee engagement are factors that influence an employee’s level of commitment and motivation toward their work. These drivers can include clear goals and objectives; opportunities for career growth; effective feedback and communication from managers; a supportive work environment; fair compensation; satisfying job responsibilities; meaningful relationships with co-workers or customers.
By understanding your company context and the key drivers that affect employee engagement, you can take action to improve what will have the biggest impact on employee performance. For example, if clear goals and objectives are one of your key drivers then you could create an action plan with your leadership team to make them clearer for everyone or hold regular meetings to discuss progress on them. Or if career growth is important then you could offer more training sessions or workshops focused on helping employees develop new skill sets that will help them progress in their careers faster than before.
Step 3: Brainstorm solutions for improving employee engagement
- Create focus groups to assign to each target area and discuss the data related to employee engagement.
- Identify possible challenges and brainstorm solutions with the focus groups.
- Translate employee engagement ideas into takeaways that can be implemented across your organization or team structure for improved engagement levels.
- Prioritize company culture, inspire employees through mission, vision, and values, develop/equip managers as coaches, build great communication habits, create a robust feedback culture around employee feedback/successes/recognitions, etc., prioritize flexibility/wellbeing of employees (through technology implementations if needed).
- Paint a clear picture of success at the organization, team, and employee level through continuous improvement initiatives like these listed above over time.
Step 4: Make commitments to improve the employee experience
Making commitments to employees can have a positive impact on their experience. By establishing clear goals, providing regular feedback, and offering opportunities for growth, companies can create an environment where employees feel valued and motivated to succeed. This creates a sense of trust between employers and employees which leads to higher levels of engagement at work.
Step 5: Implement a peer-to-peer recognition program to celebrate daily wins
- Create a peer recognition program that allows employees to recognize and be recognized by their peers. This can be done through an out-of-the-box option, such as Nectar’s 360 recognition and rewards platform, or by creating your own program.
- Recognize your employees’ efforts and successes by providing positive comments or praise on the spot when they do an outstanding job or pitch a great idea.
- Be careful not to overpraise; otherwise, it can have a negative effect on your team members and make them feel like whatever little thing they accomplish will be praised in return, therefore making them feel unmotivated to continue doing great work or completing tasks on time.
Step 6: Offer learning opportunities and continuing education
Offering learning opportunities and continuing education can help improve employee engagement by providing employees with the opportunity to acquire new relevant skills or advance existing ones. This motivates them and makes them feel valued, as they know there are clear paths for career growth and development.
As a result, employees who are engaged in this type of company culture are more motivated, and invested in their work, and perform better overall. They also have better communication with colleagues due to the increased opportunities for learning from one another.
Step 7: Define and operationalize core values
Defining and operationalizing core values can improve employee engagement by providing employees with a sense of purpose, identity, and belonging. It helps them connect with the company’s mission and inspires them to live out the company’s values in their work.
By actively promoting core principles to employees, leaders can build a cohesive work community that is supportive of one another. This encourages an emotional bond between employees and the company which leads to greater job satisfaction. Additionally, defining and operationalizing core values allows companies to set expectations for behaviour that embodies these values which can help encourage employee engagement.
Step 8: Be flexible, nimble, and open to employee feedback
Flexibility, nimbleness, and openness with employee feedback help improve employee engagement by allowing employees to share their thoughts and concerns. This creates an environment where employees feel valued and trusted, which encourages them to be more engaged at work.
By providing opportunities for employees to provide feedback in different ways such as surveys or sit-down meetings, organizations can better understand the feelings and opinions of their employees. This helps them identify issues that need resolving and solve them more effectively. Additionally, continuously capturing actionable feedback with tools like Officevibe can help organizations gauge employee sentiment on a continual basis rather than relying on annual or quarterly engagement surveys alone.
Step 9: Measure employee engagement
- Measure across the organization: Use a company-wide engagement survey to establish a baseline, measuring across groups and demographics.
- Measure across groups and teams: Once you have organizational data, slice and dice it to understand nuances across groups, teams, and demographics; identify areas where you need to dig deeper with tactics like employee focus groups or pulse surveys.
- Measure among individuals: Use one-on-one meetings, feedback recognition, etc., along with surveys; measure engagement at the individual level while keeping in mind key stages of the employee lifecycle.
Step 10: Implement a solid onboarding process
A solid onboarding process can help improve employee engagement by providing new employees with a strong emotional investment in their role and company, connecting them with other team members, assigning them an onboarding buddy, and clearly outlining expectations.
By incorporating these strategies into an effective onboarding process, employers can create a positive work environment that helps new employees feel more connected to their job and more invested in the success of their company. This leads to higher levels of employee engagement over time.
Step 11: Foster a sense of community and team-building
Fostering a sense of community and team-building can improve employee engagement by creating opportunities for employees to build strong relationships with each other. This helps create an environment where employees feel connected, appreciated, and valued. Additionally, when employees are engaged with their workplace they are more likely to be motivated and satisfied in their roles which will lead to increased productivity.
Step 12: Define and operationalize core values
Defining and operationalizing core values can help improve employee engagement by providing a clear understanding of what is expected from them as members of the team. It also helps employees connect with the company’s mission and feel more connected to their colleagues.
By actively promoting shared core values, companies can foster an environment where employees are motivated to live them out at work. This creates a sense of purpose among team members and encourages collaboration while strengthening relationships between co-workers. Furthermore, it helps employees identify with their company’s mission and feel proud to be part of it.
Step 13: Provide regular feedback
Providing regular feedback can help improve employee engagement by showing employees that you are listening to their thoughts and opinions. This creates a sense of trust and transparency, which encourages them to be more engaged with the workplace.
Regular feedback can also help you identify areas for improvement and take action on employee feedback quickly, leading to an increased sense of engagement among your employees. By responding to their suggestions with clarity and transparency, you will show them that their voice is valued in the workplace.
Improve Your Employee Engagement
Overall, employee engagement is a valuable metric to consider when assessing the success of a company. By measuring employee engagement and implementing strategies to improve engagement, businesses can create a more productive and engaged workforce.
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