Why is Employee Engagement Important for Your Business?

Effective employee engagement is crucial for running a successful business. It involves actively involving employees in the growth and development of the company, rather than simply having them passively accept orders from superiors. This is increasingly important in today’s business environment.

Improving employee engagement involves creating a positive work environment where employees feel valued, motivated, and empowered to contribute to the success of the organization.  How else can you improve employee engagement in your business? 

What is Employee Engagement?

Measuring employee engagement is crucial for employers to understand the level of dedication and enthusiasm their employees have towards their work.

High employee engagement can greatly affect your business outcomes. The highly engaged employees tend to be more dedicated, delivering better performance and results for the company. They view their work as more than just a means to earn a salary or bonus, but also as an opportunity to contribute to the growth and success of the organisation.

On the other hand, disengaged employees can harm your business’ success. Disengaged employees don’t have a sense of belonging and don’t feel committed to their roles at work. Thus, they are more prone to making costly mistakes at work. Furthermore, they are unlikely to go the extra mile while working for your company. Lastly, they can harm the company culture and affect others’ behaviors at the workplace.

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Why Employee Engagement Matters?

High employee engagement can bring numerous benefits to your organisation. Satisfied employees tend to be more productive, eager to take on responsibilities, and committed to the company’s success. They are willing to contribute to projects and activities, particularly those that have the potential to bring significant profits to the organisation. Moreover, engaged employees tend to embody the company’s values and culture in their day-to-day work. Here are the key advantages:

1. Increased Productivity

When employees are engaged, they show a strong commitment, focus, and motivation, resulting in increased productivity and improved work quality.

2. Enhanced Job Satisfaction

Engaged employees experience greater job satisfaction, finding fulfillment and enjoyment in their work, leading to higher retention rates and reduced turnover.

3. Improved Employee Morale

Engaged employees tend to have a positive attitude, fostering a supportive work culture and boosting overall employee morale.

4. Higher Employee Retention

Engaging employees is critical for retaining top talent and is an important piece of the employee satisfaction puzzle, as disengaged employees are more likely to leave their jobs

5. Better Customer Service

Engaged employees are more invested in their roles and the success of the organization, leading to improved customer service and customer satisfaction.

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6. Innovation and Creativity

Motivated employees are more likely to contribute ideas, think creatively, and actively participate in problem-solving, driving innovation within the organization.

7. Stronger Teamwork and Collaboration

Top talents would exhibit a willingness to collaborate, communicate effectively, and work well within teams, fostering a positive and productive work environment.

8. Increased Employee Loyalty and Advocacy

High performers would become brand ambassadors, advocating for the organization and attracting top talent through positive word-of-mouth.

9. Adaptability to Change

Engaged employees are more open to change, adaptable, and willing to embrace new initiatives, driving organizational agility.

10. Higher Organizational Performance

Ultimately, employee engagement leads to improved organizational performance, increased profitability, and a competitive advantage in the market.

It’s important to note that the benefits of employee engagement may vary depending on the specific organization and industry. However, research consistently shows that a highly engaged workforce positively impacts overall business success.

Read more: 15 Employee Engagement Activities to Keep Your Staff Happy and Motivated

What Are The Indicators to Measure Employee Engagement?

Employee engagement can be measured through various indicators that reflect the level of employee involvement, commitment, and satisfaction within an organization. Some common indicators used to measure employee engagement include (Gallup, 2023, State of the Global Workplace: 2023 Employee Engagement Insights).

1. Number of Absences

Frequent unplanned absences can be an indication of low employee engagement. To accurately measure engagement, employers should consider more than just the number of leaves an employee takes in advance. Factors such as tardiness, or the number of times an employee is late for work in a month, should also be taken into account when calculating absenteeism.

2. Turnover Rate

A high turnover rate, defined as the number of employees who leave the company, can indicate a lack of employee engagement. When employees feel disengaged and disconnected from their work, they may choose to resign. Therefore, monitoring turnover rate can be an important metric for measuring employee engagement within an organisation.

3. Participation

Measuring employee participation is a straightforward way to gauge engagement. By observing which employees are actively engaged in meetings, whether they are weekly or monthly meetings, sharing sessions, or client meetings, employers can get a sense of who is invested in the company and its goals. Tracking participation in internal events and activities can also provide further insight into employee engagement.

4. Relations with Higher Ups

Measuring employee engagement can involve gathering feedback from managers on the employee’s level of involvement in the company. This can include assessing their willingness to communicate and collaborate with managers, their receptivity to direction and constructive criticism, and their initiative in seeking out performance evaluations. Employees who are actively engaged tend to spend more time with their managers, and often seek out opportunities to discuss their work and growth within the company.

5. Relations with Colleagues

Measuring employee engagement also involves evaluating their relationships with their co-workers. This can be done by assessing the way they interact with and communicate with other employees. A strong, positive connection with colleagues can increase trust and collaboration. Therefore, assessing the employee’s ability to build and maintain good relationships with their peers can provide valuable insight into their level of engagement.

6. Performance & Productivity

Performance and productivity can be measured by assessing the amount of work an employee completes within a certain period of time. One way to evaluate this is by monitoring their timeliness in completing tasks and meeting deadlines. Observing their activities in the office, such as their focus on work and avoidance of non-work related tasks, can also provide further insight into their productivity level.

7. Employee Net Promoter Score (eNPS)

Calculating the eNPS by asking employees if they would recommend the organization as a place to work can provide an indication of their level of engagement and advocacy.