Why Is Employee Engagement Important?
Employee engagement is a performance strategy that distinguishes high-performing cultures from struggling ones. Gallup’s workplace engagement data show that engaged employees drive stronger business outcomes across every industry, regardless of company size or economic conditions.
Engaging employees leads to:
- higher productivity and profitability
- lower absenteeism and turnover
- fewer safety incidents and quality defects
- stronger customer loyalty
These outcomes are based on decades of researchacross industries and organizations worldwide. When comparing the most engaged teams to the least engaged, Gallup research reveals the clear benefits of employee engagement:
What highly engaged employees achieve more of:
10%higher customer loyalty/engagement
14%higher productivity (production records and evaluations)
18%higher productivity (sales)
23%higher profitability
70%higher wellbeing (net thriving employees)
22%higher organizational citizenship (participation)
What highly engaged employees achieve less of:
78%less absenteeism
21%less turnover for high-turnover organizations
51%less turnover for low-turnover organizations
28%less shrinkage (theft)
63%fewer safety incidents (accidents)
32%fewer quality defects
*The above figures are median percent differences across companies in Gallup’s database. High-turnover organizations are those with more than 40% annualized turnover. Low-turnover organizations are those with 40% or lower annualized turnover.
Employees make decisions and take actions every day that can affect both the workforce and organizational effectiveness. The way a company treats employees and how employees treat one another can positively affect their actions or can place an organization at risk.
But only 21% of employees worldwide and 31% in the U.S. fall under the “engaged” category.
Based on decades of employee engagement research, Gallup knows that engaged employees produce better business outcomes than other employees, regardless of industry, company size or nationality, and in good economic times and bad.
So, what can companies do better to engage employes?
When leaders use a science-backed employee engagement tool like the Gallup Q12® as a framework, they yield clear results.
Engaged Employees
Engaged employees are highly involved in and enthusiastic about their work and workplace. They are psychological “owners,” drive high performance and innovation, and move the organization forward.
Example: An employee who logs in for a few hours longer to get a project over the finish line or who spends more time on the phone with a client who needs help because they’re committed to their organization’s “client first” values. They build up their coworkers and have strong relationships within the organization.
Not Engaged Employees
Not engaged employees are psychologically unattached to their work and company. Because their engagement needs are not being fully met, they’re putting time, but not energy or passion, into their work.
Example: An employee who completes their work but is fueled by duty rather than passion or personal interest. This employee may prefer to fly under the radar and might back down from more intense or high-profile work.
Actively Disengaged Employees
Actively disengaged employees aren’t just unhappy at work. They are resentful that their needs aren’t being met and are acting out their unhappiness. Every day, these workers potentially undermine what their engaged coworkers accomplish.
Example: An employee who spends their time talking negatively about coworkers, current projects, leaders, etc. They may be searching for other employment opportunities in their spare time and do not plan to stay at their current job much longer.
Whose Job Is Employee Engagement?
Improving employee engagement is a shared responsibility within an organization. Leaders set the tone, and managers make it real for employees, who live out engagement every day.
Who is responsible for engagement?
- Executives create the vision and model engagement from the top.
- Managers drive 70% of the variance in team engagement and make or break the employee experience.
- Employees take responsibility for and communicate their engagement needs.
Effective employee engagement strategies start at the top of an organization. Highly engaged workplaces have executive leaders who buy into, communicate and model engagement, creating the conditions for managers and employees to adopt an engagement mindset.
What Are the Drivers of Employee Engagement?
Employee engagement grows when people feel connected to their work, valued for their strengths and supported by great managers. Gallup identifies five essential elements that consistently drive engagement.
Key drivers of employee engagement include:
- Purpose — Doing work that feels meaningful and mission-driven
- Development — Having opportunities to learn and grow
- Caring managers — Feeling supported by someone who genuinely cares
- Ongoing conversations — Receiving consistent feedback and coaching
- Focus on strengths — Being encouraged to use what you do best every day
Read the full article by Gallup
