Employee Engagement: Does It Matters for Your Company?


Oct 16, 2021 • 8 min read

"Employees who believe that management is concerned about them as a whole person – not just an employee – are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability." – Anne M. Mulcahy, former CEO of Xerox.

Employee engagement is fast becoming one of the most important indicators for measuring job satisfaction. Today, employees are looking for more than a 9 to 5 job. They want to get involved in their work, get excited about the organization they work for and get involved with their colleagues.

The researchers found that 71% of managers viewed employee engagement as one of the most essential factors in the company's overall success. Although employee engagement is considered positive throughout the company, most employees are not involved in the work.

Only 13% of employees said they were engaged at work. Low engagement can be due to several factors, including a lack of managerial recognition, poor corporate communications, and a lack of alignment with the company's mission. Employees committed to their work are more likely to be consistently productive, leading to more sales. Companies with high levels of engagement report a 22% increase in productivity.

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Business leaders must begin to view employee engagement as a strategic business goal. Here we will discover what employee engagement is and how to implement it in your company.

This article will cover:

  1. Understanding Employee Engagement
  2. Why is employee engagement important?
  3. The Benefits of Employee Engagement
  4. How to Improve Employee Engagement

What is employee engagement anyway?

Let's take a step back. Employee engagement is such a hot topic, but how is it defined?

Employee engagement is a term that has a different meaning depending on who you ask. Some may say that it means happy employees, while others insist that it means happy or satisfied employees. In general, employee engagement describes people who are committed to their work and your company's goals and values. In other words, engaged employees show up and engage, not just because they get paid for it, but because they are emotionally or otherwise engaged.

Employees' commitment has also been developed with concepts such as satisfaction and experience with employees, more about the entire journey of attitude employees leaving their work. 

When it comes to definitions, people often confuse employee engagement and job satisfaction. Although the concepts of employee engagement and job satisfaction are somehow related, they are not synonymous. Job satisfaction has more to do with whether the employee is personally satisfied than with his active participation in developing corporate objectives.

Why does employee engagement matter for your company?

Employee engagement is critical for all organizations because it helps create a better work culture, reduce staff turnover, increase productivity, improve work and customer relationships, and impact company profits. Nonetheless, it makes employees happier and turns them into your most ardent supporters.

A 2017 Employee Benefits News survey on employee benefits found that the majority of the 34,000 respondents who chose to change jobs were due to unsatisfactory conditions in terms of work-life balance, compensation, management relationships, and employment. Professional development. None of these conditions need to hold your organization back; In fact, any of these conditions can significantly improve employee engagement with the right approach to employee communication.

Employee engagement is generally more important at the company level due to its impact on business operations and profitability. However, it also assists leaders in understanding the needs and areas where employee morale can be improved. Furthermore, it helps leaders in better understanding how to manage teams and create better work environments.

The benefits of employee engagement

The great thing about working and improving employee engagement is that it benefits your organization's members. The following are some of the benefits of employee engagement. There are others, but this provides an excellent high-level overview.

  1. Increased employer loyalty

    By focusing on employee engagement, you are helping employers stay with the company longer. This keeps employee loyalty high, and employee churn costs are minimal. Low commitment and disinterest can lead to employees dropping out of school quickly and frequently. And just because your employees aren't looking for a new job doesn't mean they won't accept a better offer. If you care about your work, your team members and company will stay more interested and engaged.

  2. Productivity Increase

    Engaged employees work harder and get more done because they enjoy what they do and believe in their value to the company. Doesn't that make sense? If you are interested in something and connect to what you are doing, you are much more likely to do it well and be invested in it. When employees are engaged, overall productivity increases by 20-25 percent in the modern workplace. However, this can be quickly lost due to overworked and stressed-out employees.

  3. Increase Profitability

    The overall goal for most businesses is to drive and increase profits. Highly engaged organizations generate 20% more sales than disengaged organizations. However, if you are retaining employees, increasing productivity, and improving customer service, it stands to reason that your sales and profits will rise as well. It is also critical to reinvest time and money into improving employee engagement, as the long-term profits are well worth it.

  4. Increased Employee Satisfaction and Happiness

    Employees must be satisfied with their jobs, or their interest and enthusiasm will wane. Employees are happy with their contributions and impact when employee engagement is high. They have a connection between their performance and the company for which they work. This also leads to overall happiness, which is beneficial to company morale, productivity, and so on.

  5. Employees who are engaged become brand advocates

    Employees who are well-informed and engaged are more likely to be brand advocates. This includes word-of-mouth marketing, social media sharing, and assisting your marketing reach and employer brand.

    Employees are the most trusted source of information about your company and its services or products. This is known as employee advocacy, and it will naturally begin to occur. Your company can also invest in a platform that keeps employees informed, increases engagement, and provides employees with access to the best content to share on behalf of your company.

Tips to improve employee engagement

Many managers and business leaders would likely tell you that their employees are completely invested in their company and work. Regrettably, only 15% of employees worldwide are engaged in their jobs!

That is a significant issue, and many businesses are unaware that they have such a severe internal problem. Start caring about employee engagement, create an employee-first environment, and provide employees with opportunities and tools to do their best work. None of this is easy at first, but here are some employee engagement tips to help you get started.

  1. Encourage Communication and Conversation

    Communication, both formal and informal, is a critical factor in fostering a workplace with high levels of employee engagement. The important thing is that you have the tools and services in place that allow people to connect as easily as possible, regardless of their role or location. It should be communicated how important this is, and ways for employees to be open and honest should be provided.

  2. Make Sure They Are Informed

    If your company has more than 50 employees, chances are they are frequently unaware of important news and events. What about that new product that just came out? What about that new account you just got? If you invest in keeping your employees informed, they will feel more invested in your company.

  3. Allow Them to Express Their Passion

    According to a previous Nielsen report, people trust the recommendations of their friends and family more than any other type of marketing. Your employees have relationships with many people outside of your company, including customers, prospects, partners, and potential hires. Allow them to shout their love for your company from the (social media) rooftops.

  4. Reward the Actions 

    We're talking about the good old carrot and stick. You probably have an idea of the level of engagement you want to see from your employees. Put some gamification and small rewards in front of them. Even something as simple as a shout-out from an executive can suffice. Rewards can be a powerful motivator, but don't overdo it; they're like salt: you can always add more, but it's challenging to take it away.
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Since today's employees are looking for a 9 to 5 job and want to get involved in their work, business leaders must begin to view employee engagement as a strategic business goal. Start caring about employee engagement, create an employee-first environment, and provide employees with opportunities and various rewards. Moreover, increasing loyalty, productivity, profits, and strength of company-employee relationships are no longer just a dream.

TADA assists companies in nurturing a culture of high performers through personalized rewards and engagements. Let's talk to our experts at TADA to design an exclusive personalized engagement program suitable for various businesses. Contact TADA to find out more.

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Nida Amalia

SEO and Content Marketing Specialist who loves art, music, and movie.