Why Does (Should) Employee Engagement Matter?

Many executives thought the effects of Covid would simply autocorrect. As the months and years passed, employee engagement has been significantly impacted. This impact is felt across all industries as employers struggle to retain their employees and attract new talent. The result is lower productivity, record turnover, and reduced profits.

Employee Engagement the heart of every company are its employees.

There are many studies on employee engagement and its importance. Employees hold the key to a company’s success and subsequently, its failure – when not engaged, nurtured, and recognized. Some of the best innovations have come from suggestions from employees. If your company is   not fostering a high level of engagement, it will come at a cost.


Employees who are not engaged or who are actively disengaged cost the world $7.8 trillion in lost productivity, according to Gallup’s  State of the Global Workplace: 2022 Report


Create a Culture of Engagement

Engagement is not an easy task. The process should be methodical, and each action weighed for maximum results. Examine areas of improvement and be realistic in the time it takes to consistently engage your employees. An expectation of immediate results will only bring disappointment. However, it is possible to realize some short-term results, but for long-standing, cultural improvements, these efforts take a few years. It’s worth the investment once you see the results.


Engagement is not a characteristic of employees, but rather an experience created by organizations, managers, and team members. – Gallup


According to a recent Gallup employee engagement study, teams scoring in the top quartile on employee engagement saw the following benefits compared with bottom-quartile teams:

  • 10% higher customer loyalty/engagement
  • 23% higher profitability
  • 18% higher productivity (sales)
  • 14% higher productivity (production records and evaluations)
  • 18% lower turnover for high-turnover organizations (those with more than 40% annualized turnover)
  • 43% lower turnover for low-turnover organizations (those with 40% or lower annualized turnover)

Take the time

Every company, in every industry, can have a strong culture of engagement. Companies with a strong culture of engagement are the ones to persevere through rough economic times. And although it’s difficult to mirror engagement from one company to the next, each holds its own potential. Often, it’s difficult to see the forest between the trees, and that’s how a culture of engagement can appear. Take a step back, engage with your employees – listen to their input, and structure your culture to engage.


To learn more about Employee Engagement and ways to recognize/reward your most important asset – your employees, contact us for a demo of our Proven Employee Engagement Solutions.


To read the Gallup study – The World’s $7.8 Trillion Workplace Problem (gallup.com)

Tara Smith


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