Article | 5:24 min read

The Importance of Increasing Employee Engagement

Grow Your Business

A group of employees sitting at desks and working

Employee engagement refers to workers’ commitment and enthusiasm in completing their tasks and contributing to their workplace. There are multiple key drivers to what engages an employee. For example, employees want to be viewed as an asset rather than just a means to an end. They also desire to know the purpose behind their work contributions. Additionally, they want employers to take steps to facilitate communication between managers and their teams. Finding ways to increase productivity is imperative for the success of your company.

Consequences of Unengaged Employees

Workers in the United States are a bit more engaged in the workplace than their international counterparts, but recent trends are showing a decrease in this engagement. In fact, Gallup, an employer consultant firm, found 74% of workers are actively disengaged. As a result, many employees have a decreased interest in their company's goals or outcomes. This disconnection can seriously impact the success and productivity of a business.

Employees who are disengaged at work are more likely to consider changing jobs. Recent trends find employees are resigning at an ever-increasing rate. Many are transferring to employers that offer better benefits and pay. This lack of worker loyalty is often referred to as the “great resignation.” Gallup goes on to report, “low engagement teams typically endure turnover rates that are 18% to 43% higher than highly engaged teams.” The time and money required to find, hire, and train new employees can be costly. Business owners must find ways to combat this issue of high turnover. Engaging employees may be the best form of increasing worker retention.

Lack of quality work is another consequence of employee disengagement. Gallup research found “highly engaged teams are 14% to 18% more productive than low engagement teams.” As a result, this variance in engagement can lead to an increase in workplace safety incidents, production defects, and workers' absences. It is worth making engagement efforts in order to avoid these issues– many of which can be costly to your company’s reputation.

How to Increase Employee Engagement

Taking simple steps to keep employees engaged and happy will increase retention and attract quality job-candidates. Employers must treat their employees as crucial business investments, not simply as subordinates. It is essential to learn how to keep employees happy and healthy. After all, employees are the backbone of businesses, no matter the size of the business. It may be time to reevaluate your company culture to see where you can improve employee engagement.

Recognize Loudly and Proudly

The key to affirming employees is treating them like individuals and not like a number. One simple way to show this personal recognition is to integrate “thank you’s” in your daily communications. Simple emails or messages using the “magic” words can recognize work that may have gone unnoticed in the past. You can show appreciation through verbal acknowledgements and personal praise for their successes. By taking steps to show appreciation, these individuals will be less likely to leave for a different job.

Beyond verbal affirmation, increasing incentives is also an excellent way to show workers that their hard work does not go unnoticed. Employees who have shown consistent efforts to increase their productivity desire to be noticed. As the employer, you can reward their actions in various ways. For example, some companies may choose to reward employees with extra vacation days, company gifts, stock options, and promotion opportunities, to name a few. This incentive, whether it comes in the form of a bonus or an extra vacation day, will likely boost the engagement of your employee.

Talk to Employees

Employees desire to know what makes your company different and why they should contribute. Oftentimes, they care about their purpose more than their paychecks. Providing workers with meaning behind their role is a significant driving factor to employee engagement. Taking time to explain why they are valuable and why their work contributes to the mission of the company. Motivating employees can be as simple as explaining how their coworkers, leadership, and company depends on their valuable contributions.

It is also essential to keep employees up to date on their current workload expectations, as well as the overarching company mission. On a large scale, communicate with employees about where your company is succeeding and where it is struggling. By involving workers in problem-solving and in brainstorming future company initiatives, they will feel a sense of personal ownership. At a more personal level, keep individual employees updated on where their department is excelling and where it can use growth. Collaborate with them for the best solution and any ideas they have to increase productivity. These simple actions will stimulate employee development and strengthen the skills of your workforce.

Lastly, keep an open line of communication with employees about what they want from you, their employer. Every generation of employees has a different standard of what they want their employer to provide. For example, millennial workers may have a different standard of healthcare than the generation before or after them. Talk to your employees to see what trending benefits appeal to them the most. Businesses are always seeking new ways to attract and retain customers – it’s now time to apply the same strategy internally. Learn what makes your workers tick and why they are choosing to work for your business. Use that knowledge to implement new strategies for keeping employees engaged and happy.

Effective Management

A report conducted by Gallup found that managers have the greatest impact on employee engagement. In fact, upwards of 70% of team engagement variance is attributable to the manager or team leader. Your managers are the direct representatives of your business among your employees. This position provides the best line of communication to encourage and guide individuals in your workforce. For this reason, it is imperative you find the right manager for your business.

Managers can take multiple approaches in their efforts to promote employee engagement. Weekly meetings are an effective method of keeping workers involved. By having this consistent communication in place, workers can know if their performance is on point.

Depending on the size of the manager's team, these meetings can be one-on-one, full-team meetings, or a mixture of both. These meetings can help foster a worker’s professional growth. Managers can let their employees know where they are excelling, how they can improve, and what further resources they can offer them. By showing interest in a worker’s personal growth and performance, your company will build deeper relationships with employees and likely increase engagement.


The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.