The Importance of Employee Engagement
Why employee engagement is key to a company’s success
The importance of employee engagement cannot be overstated. High employee engagement has been proven to reduce employee turnover, improve productivity, and deliver higher profits. Engaged employees also show greater commitment to a company’s values and goals.
For the modern workforce, an engaging work environment is expected. Many workers refuse to settle for a company that does not prioritize employee engagement. For leaders, this means an engaging culture is not an option–it’s a requirement. And now more than ever, in the age of remote work and more competition, employee engagement needs to be a priority.
“Since before the COVID-19 pandemic, the decline in the percentage of engaged employees was evident across all three groups — exclusively remote, hybrid and exclusively on-site — but highest for employees who are exclusively remote.”
What is Employee Engagement?
Employee engagement describes the dedication and enthusiasm of employees in their work and organization. In short, it’s how much a person cares about their job. If a person feels pride in their work and workplace, it will positively reflect on their performance.
An engaged employee is optimistic about their work and employer. This individual is more likely to be productive and take positive action to better their company. If you multiply that across the entire company, it will result in less turnover, higher customer satisfaction, and greater profitability!
On the other hand, a disengaged employee is unsatisfied, doing the bare minimum, and ultimately hindering the company’s productivity. A negative work environment may also increase turnover and absenteeism. This is why employee engagement is key to a company’s overall success.
Why Employee Engagement Matters
For engaged employees who are happy and committed, it’s more than just a paycheck–it’s the company’s dedication and values that make employees passionate about their work. What effect does that have? When employees are engaged, they’re more likely to invest in their work, leading to high-performing employees.
Some benefits of employee engagement:
Employee retention: Human resource leaders focused on high employee engagement reduce both turnover and hiring costs. Engaged employees are more likely to stay with their employers.
Genuine employee relationships: Dedicated employees trust their coworkers and leaders. They look out for each other and feel more connected through positive work experiences.
Increased productivity: Engaged employees are more present and productive. They make it a priority to show up and produce work they’re proud of.
Higher profitability: Highly engaged teams show greater profitability by 23% compared to companies with lower engagement.
Improved mental wellness: Engaged employees have a better outlook on their work and workplace. Companies that also incorporate a wellness program experience fewer burnouts.
Better customer service: Engaged team members show great commitment toward customers. They are more attentive and take more ownership of their customer relationships.
A Closer Look at the Stats
When it comes to employee engagement, America is in a slump. And don’t just take our word for it! Take a look at these statistics.
According to a survey conducted by Gallup, employee engagement in the U.S. saw its first annual decline in a decade, dropping from 36% in 2020 to 34% in 2021. This decline has only continued into 2022. As of now, only 32% of employees are engaged and 17% are disengaged–that’s a three percent increase since 2020!
According to Gallup's State of the Global Workplace: 2022 Report, employees who are not engaged or are actively disengaged cost the world $7.8 trillion in lost productivity. That's equal to 11% of the global GDP! Coupled with the Great Resignation, human resources teams have their work cut out for them.
The good news? From promotions to digital tools, there are many ways to increase your employee engagement.
How to Increase Employee Engagement
Companies can encourage employee engagement in multiple ways, including offering rewards and promotions, keeping employees informed about the company's performance, and providing regular feedback. Other strategies include making your employees feel valued and respected. A key factor in engaged employees is the belief that their work is meaningful and appreciated.
“Engagement is not a characteristic of employees, but rather an experience created by organizations, managers and team members.”
Here are a few ways to increase engagement:
Encourage and provide opportunities for growth: According to Gallup, 87% of millennials said professional development opportunities are very important in a job. Offering tuition reimbursement or continued education credits are great ways to support your employees’ growth.
Advocate for work/life balance: Aside from fair salary, a healthy work/life balance is critical to an employee’s wellbeing and engagement. Helping your employees achieve work/life balance is more than establishing work-from-home days–it’s also about creating a culture that supports hobbies, interests, and family time.
Host a company-wide meeting: Company-wide meetings create a culture of open communication and keep employees engaged with what’s happening. Employees can share accomplishments and obstacles, receiving useful feedback from their coworkers.
And thankfully, in this digital age, improving employee engagement is easier than ever before. Digital employee engagement tools can improve employee satisfaction and engagement–whether they’re fully in-office, hybrid, or fully remote!
Benefits of Employee Engagement Tools
Digital solutions like project management tools, communication platforms, and even a digital employee evaluations form, make it easy to keep tabs on engagement. For example, a company that wants to encourage communication between teams might introduce them to an internal chat tool, like Slack.
Convinced yet? There are many benefits to using a digital employee engagement tool at your company. The right tool can become a core part of your company and transform your company’s culture.
Here are the benefits of employee engagement tools:
Increases teamwork and collaboration: Communication is everything. Internal communication platforms provide messaging in real-time, creating more effective and efficient collaboration.
Improves employee productivity: Project management tools are a great alternative to sticky notes on an office wall. With the right solution, your company can boost employee productivity and performance.
Boosts time efficiency: Digital solutions like digital forms help companies leave time-consuming paperwork behind. The best digital form systems will keep your existing paper format but remove all the illegible handwriting, lost paperwork, and manual data entry.
Allows for continuous employee feedback: Employee engagement surveys help human resources teams understand their employees better. These tools provide helpful insights to changes that need to be made.
Makes employees feel appreciated and heard: Engagement tools focused on employee recognition can help your team stay motivated. The right tool can help your company recognize employee anniversaries, accomplishments, and more!
What’s Next?
With Covid stabilizing in the U.S., organizations have an opportunity to put new plans in motion. How each company chooses to apply these methods and tools will differ from one organization to another. However, understanding the importance and basics of employee engagement is a critical first step in building a resilient work culture. With methods and digital tools, employees can feel empowered and engaged every work day.
Ready to increase your employee engagement?
About GoFormz
GoFormz is a digital forms solution that’s redefining how people and businesses collect and process information. With over 100,000 customers in over 150 countries, we’ve helped customers do everything from creating timesheet templates to automating marketing and sales workflows. We believe that everyone should be able to fill out their forms online and ditch outdated paper processes. That belief set us on a mission to help every customer digitize their forms and modernize how work gets done—all without code.
