Can Engaged Employees Boost Business Outcomes?

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24 July 2021

The business value of employee engagement is undeniable as it leads to improved productivity, employee retention and alignment with overall company goals

Employee engagement is the bridge that fills the gap between an organization and its employees. The success mantra leads to a high performing and driven workforce aligned with the company's goals. 


However, employee engagement is often ignored and/or misunderstood by employers. That leaves the employees feeling unenthusiastic about their workplace or non-committed to their team. Unengaged employees have poor job satisfaction and employee productivity, eventually impacting the overall ROI and business growth. 

 According to a recent survey by Gallup, only 15% of the worldwide workforce is engaged in their jobs. That leaves a whopping 85% unsatisfied, unmotivated and unproductive because they feel disengaged. 

 So, what is employee engagement?

Employee engagement technically is the emotional investment your employees have in their job role, their team's goals, your business and overall organizational mission. It has become a critical marker that helps gauge gaps in company culture and people practices. 

 When employees feel engaged at work, they are more likely to perform better at their job. They push the boundaries of their job description as they are motivated. They feel connected with their team and broader company vision. Together, these factors help them strive harder to deliver their best and ensure that the business succeeds. 

 However, employee engagement is often confused with employee happiness and satisfaction. While these are important, happiness is often a temporary phase, and satisfaction ensures that employees are retained for a longer period. But both these markers don't ensure that the employee will go beyond the call of duty and feel aligned with the business as a whole. 

 Why is employee engagement so important?

 Here are some reasons that make the business case for employee engagement –

 Increased productivity

Employee productivity is the key to any business. No points for guessing that! 

The more productive your workforce is, the more successful your business will be. According to Gallup, highly engaged teams are 21% more productive than their poorly engaged peers. Engaged employees are creative, collaborative and driven towards work, allowing them to work more effectively, which leads to improved productivity.

 Higher retention and better talent acquisition

Engaged employees are unquestionably the most loyal to their organizations.

 According to Gallup, the highest performers –

  1. have a longer office term of a decade or more in their organizations

  2. are engaged in their job and

  3. are in roles where the job expectations align with their talents.

 While each of these affects bottom lines independently, the highest performance comes from the union of these three. When your organization focuses on employee engagement, it attracts top talent and retains existing employees better.

 Customer satisfaction

Engaged employees are more willing to go the extra mile to delight customers. And we all know how happy customers translate to more business. 

 Also, customer satisfaction drives through the roof with engaged employees because they believe in their company goals and brand. That helps engaged employees build a relationship with the customers and thus will be happier in the long run. Finally, engaged employees are more productive and deliver more value to customers, helping them feel valued. 

 Improved business outcomes

Engaged employees deliver higher customer satisfaction, leading to higher sales. There is lower employee absenteeism, decreased workplace injury and increased productivity; all put together lead to improved bottom lines. There are lot of studies that shows, increasing employee engagement score by 1 point can improve sales by 1.6%. Terrific right!

 Employee wellness

Engaged employees generally take care of their well-being. They are healthier and happier, which directly impacts your profitability. 

 Drivers of employee engagement

 Every business is different, and so are the drivers influencing employee engagement for each organization. However, these are some of the common factors that influence engagement levels. 

  • Motivating work – Meaningful work that delivers value is sure to make employees feel proud and thus engaged. Understand what is "meaningful" work for them and how they can achieve it. 
  • Promote Autonomy - When employees feel valued and involved in the decision-making process, they are more likely to work harder. Allow employees to take ownership to show their trust in them. That will not only foster confidence but also improve productivity. 
  • Rewards and recognition – An excellent way to boost employee morale is to appreciate their achievements, wins and contributions on public platforms. Shout-outs and kudos promote positivity. Also, ensure that you offer equitable rewards. These rewards should be determined based on open conversations with the employees so that they understand them. 
  • Company values – Defining clear company values and realistic goals are critical for employees to align their true north with. Creating a conducive environment for collaboration is critical for teams to work effectively.  
  •  Communication – Communication, including keeping your employees informed and updated, is vital to employee engagement. Communicating everything from the company's strategy and goals to company progress builds trust and transparency. Communication is a two-way street. Allow freedom of opinion and be willing to take feedback constructively. 
  • Growth opportunities – Personal and professional growth is the ultimate factor that drives employees to perform better. Defining a clear growth roadmap will help them upskill and progress sooner. 

Employee engagement is not synonymous only with HR any longer. While HR takes ownership of driving engagement initiatives, the responsibility of implementing them should be shared by leaders, managers and employees together.

Contact us to learn about how you can implement a holistic engagement initiative for your business, today!

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