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Why is employee engagement important? Importance of Employee Engagement in a Company: Great Guide For 2023 

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Photo by Brooke Cagle on Unsplash

Over here at the Teamflect blog, we have spent an inconceivable amount of time on answering questions such as:

  • Why is employee engagement important?
  • Is employee engagement important?
  • How to improve employee engagement?
  • What are examples of employee engagement?

Sometimes even the very simple “What is employee engagement?”. One would think that we would be tired by now. Never! We will never be tired of talking about the importance of employee engagement, helpful employee engagement platforms, and just how much of a difference using the right employee engagement tools can really make.

Our writers might have to type out the definitions of employee engagement until their beloved keyboards are worn out but that is a sacrifice we are willing to make if it helps keep employees around the world engaged!

Key Employee Engagement Statistics

Data that reflects why is employee engagement important.

Impact on Productivity:

Highly engaged teams experience a 17% increase in productivity compared to teams with low engagement levels. (Source: Gallup)

Employee Retention:

Organizations with strong employee engagement programs have a 31% lower employee turnover rate. (Source: Officevibe)

Engaged employees are 87% less likely to leave the company, reducing recruitment and training costs. (Source: Workplace Research Foundation)

Customer Satisfaction:

Companies with engaged employees tend to achieve 2.5 times more revenue growth compared to competitors with lower engagement levels. (Source: Harvard Business Review)

Engaged employees are more likely to provide better customer service, leading to higher customer satisfaction rates. (Source: Temkin Group)

Innovation and Creativity:

Highly engaged organizations see a 250% increase in innovation compared to those with low engagement levels. (Source: Gallup)

Engaged employees are more willing to share their ideas and contribute to a culture of innovation.

Managerial Influence:

Managers play a critical role in engagement. 70% of the variance in employee engagement is attributed to the manager’s influence. (Source: Gallup)

Remote Work Impact:

Remote employees who feel engaged are 32% more likely to feel happy and productive in their roles. (Source: Buffer)

Why is Employee Engagement Important?

Answering the question of why is employee engagement important goes through multiple layers. Driving employee engagement has a significant impact on a company’s bottom line.

It’s not just about keeping employees happy, it’s about ensuring that they are motivated and productive. Companies with engaged employees are more likely to see increased productivity, improved employee retention, better customer satisfaction, and ultimately a boost to their bottom line.

Increased Productivity

Engaged employees are more productive and motivated to do their best work. They are more likely to take initiative and come up with creative solutions to problems. This results in higher quality work and a more efficient workforce. Furthermore, engaged employees are less likely to call in sick or miss work, which helps to minimize downtime and maintain productivity levels.

Improved Employee Retention

two person handshaking.

Companies with engaged employees are more likely to have employees who are committed to their work and their organization. These employees are less likely to leave their job, which saves the company money and time in finding and training new employees. High turnover rates can also impact company morale and reputation, so it’s important to focus on employee engagement to keep employees happy and committed to the organization.

Better Customer Satisfaction

Engaged employees more often than not provide excellent customer service. It doesn’t take complex HR analytics tools to discover that engaged employees who are happy at work have a much healthier relationship with customers as opposed to disengaged employees!

They are more motivated to go above and beyond for customers, which can lead to higher customer satisfaction and loyalty. Engaged employees also have an easier time identifying areas for improvement and coming up with creative solutions to better serve customers. This can lead to increased customer satisfaction and a better reputation for the company.

The Personal Benefits of Employee Engagement

man siting on wooden dock

Greater Job Satisfaction

One of the greatest benefits of employee engagement is job satisfaction. When employees feel valued and connected to their work, they are more likely to have a positive attitude and feel fulfilled in their job. This leads to greater job satisfaction, which can have a positive impact on an employee’s overall well-being.

Improved Well-Being

When employees are engaged, that means they probably have a healthy work-life balance. When employees feel fulfilled in their work, they are less likely to experience stress and burnout. This can lead to better physical and mental health, which can result in improved overall well-being.

Increased Sense of Purpose

Engaged employees feel a sense of purpose in their work. They feel connected to their work and the company, which can result in a greater sense of meaning and fulfillment in their job. This can lead to a more positive outlook on life and a greater sense of purpose in one’s work.

Better Work-Life Balance

Engaged employees are more likely to have a healthy work-life balance. They are less likely to experience burnout and are more likely to have a positive outlook on their work and life. This can result in a more harmonious balance between work and personal life, which can lead to greater happiness and satisfaction.

5 Strategies for Improving Employee Engagement

Employee Engagement Surveys

engagement survey dashboard with infographics and smileys

The key to increasing employee engagement goes through measuring it. We can already hear you asking. How can I measure employee engagement?

This is where employee engagement surveys come in. The best and easiest way to conduct employee engagement surveys is by integrating them into the communication software you are using such as Discord, or Microsoft Teams. This allows you to conduct them at any frequency you want and achieve high answer rates.

While there are many incredible employee engagement software available (For more info: Top Employee Engagement Software of 2023), the premier tool to conduct employee engagement surveys inside Microsoft Teams is Teamflect.

Teamflect users can not only feed their employee engagement pulse surveys directly into their Teams channels but they can also access a wide database of employee engagement survey questions to create those surveys with ease!

Empowerment and Autonomy

Give your employees the freedom to make decisions and own their work! When they feel trusted and in control, they’ll be more invested and fulfilled in their job. Plus, they’ll be motivated to put their best foot forward and strive for excellence.

Recognition and Rewards

A little praise goes a long way! Recognizing and rewarding employees for their hard work and achievements is a surefire way to boost their motivation and engagement. Make them feel appreciated and valued – who wouldn’t be motivated to do their best work then?!

Opportunities for Growth

Nobody likes feeling stuck in a dead-end job. Give your employees opportunities for growth and development, whether that be through training programs or new job responsibilities. They’ll feel challenged and fulfilled, and you’ll have a workforce that’s constantly improving!

Flexible Work Arrangements

Flexibility is key to a happy and healthy work-life balance. Offer flexible hours or remote work options, and you’ll find your employees are more motivated and productive. Plus, they’ll thank you for giving them the ability to balance their work and personal life more effectively.

Written by Emre Ok

Emre is a content writer at Teamflect who aims to share fun and unique insight into the world of performance management.

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