Why is employee engagement important?

Why is Employee Engagement Important?

Employee engagement can play a key role in many aspects of your business including company success, employee retention and more.

According to a recent Gallup poll, employee engagement is on the rise. Thirty-four percent of U.S. workers are “engage,” tying the highest mark since Gallup began tracking the trend in 2000. “Actively disengaged” employees are at an all-time low at 13 percent. While this is a reflection of the improvements to the modern workplace, there’s still much work to be done by organizations to ensure they’re setting foundations for positive work environments. This is the skill of a good people manager if he can ensure this environment.

Why is employee engagement important?

Gallup notes, “the remaining 53 percent of workers are in the ‘not engage’ category. They may be generally satisfied, but are not cognitively and emotionally connected to their work and workplace; they will usually show up to work and do the minimum required, but will quickly leave their company for a slightly better offer.” That total 66 percent (actively disengaged plus not engaged) represents an opportunity to retain talent by bringing greater awareness to engagement and looking for ways to positively impact the employee lifecycle.

Employees Engagement

The focus on employees engagement is on the rise globally. And it is not an issue relegate only to the HR team of an organization. It is a business concern that requires serious consideration. In this piece, we discuss what employee engagement means, why it is critical to the bottom line of an organization, and effective technology-enabled employee engagement strategies.

Simon Sinek, author of Start With Why, describes employee engagement in the simplest of terms: “When people are financially invest, they want a return. When people are emotionally invest, they want to contribute.”

Gallup’s Study

When employee engagement is high, Gallup found that companies benefit from:

Higher customer satisfaction: Customer satisfaction levels were up to 10% higher for companies with the most engaged teams.

Higher productivity: The most engaged teams were 21% more productive.

Greater profits: Businesses with the most engaged teams had 22% higher profits.

Beyond those high-level impacts, Gallup’s study also reported that in companies with high engagement rates, employees took fewer sick days, retention rates were higher, inventory shrinkage was smaller, safety incidents were less frequent, and product defects were less common.

Employee engagement is one of the key competitive differentiators in today’s business landscape. A highly-engaged workforce performs remarkably better than its counterparts, benefiting everyone in the company, from individual team members to leadership, as well as customers and shareholders.


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