You know that very awkward silence when you ask for ideas in a team meeting and nobody says a word? Yeah, we’ve all been there. It is not that your team is not talented or capable, it’s just that something is missing.
That “something” is engagement. When employees are unplugged from their work, the best of tasks feel like pulling teeth. But when they are? That’s where the magic happens-productivity soars, creativity flows, and everyone works better together.
So, how do you improve employee engagement? And honestly, why is employee engagement even important? Spoiler: It’s not about fancy perks or over-the-top team-building retreats. It’s about focusing on the key drivers of employee engagement and creating a workplace where people actually want to show up every day.
In this article, we will go deeper into the things that truly make your employees tick, while showing some practical advice on boosting engagement to have happier, motivated teams. Let’s dive in!
What is employee engagement?
Employee engagement is way more than physically showing up to work; it is an emotional commitment of employees to their jobs and the mission of the company. When employees are engaged, they are not just doing their jobs; they are invested in the success of the organization and their growth within it.
Engagement means going above and beyond. Employees are attentive, interested, and concerned with their work, the outcomes of their work, and what they can do to further its importance. Employees are fully engaged in doing the best to attain shared goals.
Key drivers of employee engagement
- Communication clarity: The employee should have clarity of goals, expectations, and how his/her results will help the big picture.
- Recognition and Rewards: Acknowledge efforts and celebrate the wins, be it big or small, to keep spirits high.
- Professional growth opportunities: Employees want to learn and grow and feel their skills valued.
- Work-life balance: Flexibility in scheduling and a supportive environment go a long way toward keeping people engaged.
- Strong Leadership: Leaders who listen to, support, and inspire their teams drive engagement.
At its core, employee engagement is about building a work environment where employees are connected to the company’s mission, their teams, and their professional development. It will be the dynamic force that drives productivity, creativity, and ultimately, business success.
Now that we know what employee engagement is, the question arises: Why is it so important? Let us take a closer look at why engagement is so important, not only for employees, but for the organization as a whole.
Why employee engagement matters?
So let’s just take a look, next, at some of the reasons why employee engagement, in particular, isn’t nice to have; rather, it is essential. Engaged employees are usually not just nine-to-fivers, whereby employees do indeed care about their work-the company’s success and the role that they are supposed to play in such companies. They are workers who make an extra effort, push the limits, and vitalize the work environment. Well, that may be fair, but just why? Let’s hear them out.
The results of disengagement are serious: according to the Gallup State of the Global Workplace Report, disengaged employees cost US companies from $450 billion to $550 billion annually in lost productivity.
And the stakes are high: if employees are disengaged, productivity will suffer, morale bottoms, and team collaboration can feel like pulling teeth.
On the other hand, engaged employees drive results. As Gallup says, highly engaged teams are 21% more profitable. Engagement leads to greater work commitment, and thus better performance and stronger business outcomes-including superior financial returns. Quite obviously, engagement is not just a “feel good” metric; it’s directly linked to business success.
Employee engagement also has a big effect on employee retention. For example, highly engaged employees are 87% less likely to leave their organization, reducing turnover along with the high costs of recruiting and training. As any HR professional will attest, employee turnover is expensive and disruptive. By keeping your top talent engaged, you can avoid these challenges and maintain a stable, experienced team.
Moreover, do not underestimate employee engagement in terms of customer satisfaction. Research has shown that employees’ engagement is related to customers’ satisfaction and loyalty. Employees who are much motivated provide better service, become more committed, and best represent the firm.
It’s not just about business metrics: highly engaged employees are even healthier-physically and mentally. According to a study by Gallup, individuals who reported being highly engaged at work also experienced less stress and took fewer sick days. A healthy workforce guarantees not only better productivity but more positive energy and creativity popping into the workplace. And that’s a virtuous cycle: engagement fosters productivity, and productivity fuels engagement.
Here is a brief rundown of reasons showing why employee engagement matters.
- Higher profitability: Companies with engaged employees are 21% more profitable.
- Reduced turnover: Engaged employees are 87% less likely to leave their jobs.
- Better customer satisfaction: Engaged employees create stronger customer relationships and higher customer satisfaction.
- Improved health and well-being: Engaged employees have lower stress levels and fewer sick days.
Why does employee engagement matter? Because it is the heartbeat of an organization that truly thrives. Without it, the best-laid strategies go nowhere. With it, the possibilities are endless.
The current state of employee engagement
We’ve established that employee engagement is critical to organizational success. But what is the current state of engagement?
Recent data reveals a disturbing shift. It reported that 17% were active disengaged in the first quarter of 2024, one point higher compared with its parent 16% disengagement rate for all 2023. Maybe an increase which is minor and therefore insignificantly different-but not unimportant, with larger minorities reported today among employees who are part of the youngest generation.
For example, Gen Z workers reported a significant drop in overall well-being, with only 31% of them feeling they’re thriving in life in 2023, compared with 35% in 2022. Such a decline evokes increasing concern about employee satisfaction, especially among the newer generations entering the workforce.
Carrying this trend on means several challenges might be at hand for organizations that go far beyond low employee engagement.
Here’s what might be at stake:
- Lower productivity: Disengaged employees work less efficiently or produce low-quality work, which directly impacts results.
- Increased turnover: The higher the turnover, the more that has to be spent to recruit and train new people.
- Dissatisfaction: A disengaged workforce is toxic; it brings down the morale of the entire team and reduces effective collaboration.
- Financial impact: Globally, disengaged employees cost the economy about US$8.9 trillion annually, or 9% of global GDP.
As we see, disengagement doesn’t just affect a few individuals – it can ripple across an entire organization, affecting its bottom line and future success. The solution is clear: addressing employee engagement head-on is no longer optional; it’s essential.
Let’s look more closely at how we might foster better engagement and sidestep the wide-ranging effects of disengagement.
Ways to improve employee engagement
Improving employee engagement is not an overnight thing; it requires time, effort, and a strategized approach. Yet again, don’t be afraid – small steps can go a long way. Whether you’re leading a small team or a large organization, there are some essential habits that can make all the difference in increasing engagement.
- Start with open communication
Communication is at the heart of employee engagement. When one knows they are heard, they feel appreciated. This frequent check-in, open forum, or channel for feedback will let one know their opinions count and you are invested in their well-being.
Let’s make communication as easy as possible. That will be achieved with proper employee engagement tools, like Chanty. It makes staying in touch with others easier by putting all your instant messaging, voice calls, and video conferencing in one place. Be it a team working from the office or remotely working from their homes, they can keep up with each other and share important updates without much hassle. It also facilitates cross-channel communication, where nothing gets missed. This kind of frictionless communication allows everyone to stay in the loop and feel more involved in the work they do.
- Acknowledge efforts
Recognition is one of the good employee motivators. A simple “thank you” or recognition of one’s effort goes a long way. Make sure achievements, no matter how small or big, are celebrated, and that your praise is specific. Instead of saying, “Great job,” say something like, “Your efforts on the project really made the difference, and we couldn’t have made the deadline without you.”
Recognition does not have to be formal, but it does need to be personal and sincere. Consider creating an environment in which employees can recognize each other’s hard work and drive a culture of appreciation.
- Foster growth and development
Engagement prospers when employees have chances for learning and growth. Be it through formal training, mentorship, or new responsibilities, providing growth opportunities makes the employees feel invested in themselves and their future at the company.
You can encourage this by providing resources for further learning, encouraging employees to accept challenges, and offering career development opportunities. Such a collaborative platform is very helpful for sharing resources, tips, and learning material that will help them further in their skills development.
- Foster a positive work environment
Engagement thrives in a supportive and inclusive work culture. When employees feel valued and respected, they are more motivated to contribute. Positive relationships among team members and a sense of belonging can heighten job satisfaction and reduce turnover.
It’s not about the perks-snacks or flexible hours-but about trust and inclusivity in all facets of your work culture. Encourage collaboration and connection in any manner possible at work-related tasks or casual chats – can improve morale and foster stronger bonds between team members.
- Measure and adjust
You can’t improve what you don’t measure. Regular assessments through employee engagement surveys, one-on-ones, or team check-ins can help you understand what’s working and where you might need to adjust. Collecting feedback ensures that you stay on track and address any issues before they become bigger problems.
Many engagement tools come with built-in analytics and reporting features that allow you to monitor employee sentiment and participation. These insights can help you track the effectiveness of your engagement strategies and fine-tune your approach as you go.
Mistakes to Avoid in Employee Engagement
Even the best engagement strategies can go off the rails if you’re not mindful of common pitfalls. Here’s a closer look at some mistakes that can undermine your efforts – and how to avoid them.
1. Ignoring employee feedback
You asked for feedback. That is a good start, but what happens next means even more. If employees don’t see action-or at least acknowledgment-after sharing their thoughts, they will lose all trust. Worse, they may just stop contributing altogether. Be transparent about what you can and can’t do-and always follow up. A simple “Here’s what we’re doing with your ideas” goes a long way.
2. Over-relying on perks
Of course, benefits like free lunches or nice offices are nice, but these do not fill the more profound needs of purpose, growth, and recognition. Nor will a foosball table resolve a toxic work culture. Engagement runs deeper-it is about meaningful connections, career development, and an environment that makes people feel valued.
3. Treating engagement as a one-time effort
Employee engagement is not a box to be checked off, nor is it even a project that has a defined start and stop. Think of it more as a journey. Employees change, teams morph, and priorities shift. That means engagement requires constant nurturing-like a living, breathing thing that thrives under consistent care.
4. Neglecting leadership development
Engagement starts at the top. Even the best company-wide initiatives fall flat without the skills to inspire and connect with their teams. Invest in leadership training: teach managers to give feedback, foster inclusion, and create a sense of belonging. A strong leader can make or break engagement efforts.
5. Making initiatives too complicated
Complex engagement programs can overwhelm employees instead of motivating them. Long surveys, multi-step processes, or jargon-heavy goals feel more like work, not a help. Keep it simple. It’s clarity and accessibility where engagement thrives. Recall that your goal is to make employees’ lives easier, not harder.
6. Not recognizing the small wins
Waiting until the big achievements to celebrate is a lost opportunity. Recognizing small wins-like meeting a deadline, solving a tricky problem, or showing great teamwork-keeps employees motivated. Regular, genuine appreciation builds a culture where effort is noticed and valued.
7. Overlooking remote and hybrid workers
Out of sight shouldn’t mean out of mind. Many remote and hybrid employees feel disconnected, and it can ding engagement. Helping remote workers feel as involved and appreciated as others in the office requires regular check-ins, virtual team-building activities, and inclusive communication.
8. Focusing only on the “What,” not the “Why”
Engagement initiatives that feel transactional-for instance, offering rewards without explaining the bigger purpose-fall flat. Employees want to know the “why” behind their work. Helping them connect their roles to the company’s mission gives them a greater sense of engagement and fulfillment.
9. Not measuring and adapting
You can’t improve what you don’t measure. Forgoing regular checks on the level of engagement-or just sticking with a strategy that is clearly not working-means missing chances to improve. Surveys, one-on-one conversations, and data can help you keep track of what’s working and where adjustments are needed.
These misses to avoid aren’t just about skirting trouble; it’s about building trust, connection, and momentum. Employee engagement is not a perfect science, but with a little thoughtfulness and proactivity, you move in the right direction, and if you trip up-well, that is all part of the growth curve. Just keep chugging!
Driving employee engagement starts today
Improving employee engagement isn’t just about checking boxes or following trends – it’s about building a culture where people feel connected, valued, and motivated to do their best work every day. The good news ? You don’t have to do it all overnight. Small, thoughtful changes can effectively move the needle on your organization’s morale and productivity.
Here’s a recap of what you can do to boost engagement, plus some new ideas you can try today:
Encourage peer recognition: Allow employees to recognize their peers for doing a good job. This will build camaraderie and make the recognition feel more organic.
- Gamify the engagement: Make team goals an enjoyable challenge. Apply game thinking and mechanics to even mundane activities to make them rewarding, positively competitive, social experiences-think friendly competition, reward points, and team-based achievements that get everyone on their toes.
- Focus on employee well-being: Employee engagement isn’t all about work; it’s about the whole person. Consider wellbeing programs that may include fitness challenges, mental health days, or wellness initiatives that will help show employees you truly care about their health and happiness.
- Foster a culture of learning: Employees want to grow in their roles. Encourage continuous learning by offering online courses, lunch-and-learns, or access to new resources. This demonstrates your investment in their professional development.
- Make feedback creative: Instead of just having engagement measured through an annual survey, keep the feedback coming in through quick polls, suggestion boxes, or even retrospectives of teams on a regular basis. Act on the insights you collect so employees know their voices are heard.
With these ideas, you will be able to create an environment where employees don’t just feel engaged but are excited to contribute toward the company’s success. The best part is that these initiatives don’t require massive budgets-just a commitment to making your employees’ experience better.
Looking to supercharge your team’s communication? Then try Chanty for free today and see how it may streamline collaboration and create engagement with your team. With seamless team messaging, voice calls, and video conferencing, the app helps make sure your team stays connected and engaging from wherever they are with just a few clicks. Try Chanty for yourself and join thousands of teams innovating business communications.
