What is Employee Engagement? [+11 Data-Backed Benefits and Strategies]

If you’re playing along with buzzword bingo, you’ve heard the term “employee engagement.” But it would be a mistake to dismiss it as just a buzzword. Classy Database

Ignoring engagement costs the global economy 8.1 trillion dollars each year, according to a study by Gallup.

Thankfully, the opposite is also true. Improving employee engagement can boost profitability, improve customer satisfaction, and even make for a safer workplace.

Design and document a culture code for your business with the help of this free template.

Read on to learn what employee engagement is and what factors affect it. Then discover 11 strategies for improving employee engagement at your workplace.

• What is employee engagement?

• Employee Engagement Examples

• Why is employee engagement important?

• How to Measure Employee Engagement

• How to Improve Employee Engagement

What is employee engagement? Employee engagement is the measure of aClassy Database

person’s commitment, involvement, and enthusiasm for their job and workplace. An engaged employee knows how they fit into the company’s plans, and works toward achieving company goals. Put simply, it’s the difference between showing up for work and showing up for a paycheck.

Engagement means that employees:

• Know what they contribute toward their team’s success.

• Work toward their company’s goals and values.

• Are connected to and supported in their role.

• Look for ways to learn and grow in their role.

Employee engagement isn’t the same as job satisfaction or employee happiness. Although those ideas are a part of the equation, employee engagement speaks to motivation. An engaged employee invests time, energy, and talent to benefit their team and company.

As Kayla Marchetti – engagement manager for Seismic – puts it, “I want any individual who joins us to feel passionate about our mission and work, to feel a sense of belonging, and to know they have opportunities to grow and develop their career here.”

On the inside, engagement embodies feelings like purpose, trust, and autonomy. On the outside, it looks like a collection of behaviors and attitudes. Let’s take a look at some examples to better understand what these behaviors look like.

Employee Engagement Examples

Employee engagement isn’t a switch that gets turned on or off. It exists on a spectrum from highly engaged, to non-engaged, to actively disengaged. Most employees will fall somewhere in between, and their level of engagement can change over time.

Here are some examples of how engagement can show up. For each example, we'll also highlight a stat showing how many employees fall within that engagement group, as per the Gallup study we noted in the introduction:

Highly Engaged [36% of U.S. workers in 2021]

• Enthusiastic about their work

• Helps out co-workers

• Gives extra effort when needed

• Seeks out new responsibilities and learning opportunities

Non-Engaged [49% of U.S. workers in 2021]

• Relatively satisfied with their job, but not committed

• Will do what they need to, but not more

• May have a 9-to-5 attitude

• Could be at risk of accepting a new job opportunity

Disengaged [15% of U.S. workers in 2021]

• Complains to co-workers (and possibly customers, too)

• May damage company culture and office morale

• Unwilling to join in social activities

• Likely looking for a new job

It may be tempting to think of these behaviorsClassy Database

as personality traits, but they may say more about your company culture instead. Even star employees can become disengaged if they don’t have clear expectations and the resources to do their job well.

Why does employee engagement matter? Studies show that employee engagement leads to an increase in productivity, profitability, and customer satisfaction. Engaged employees are happier, healthier, and more likely to stay in their job. High levels of employee engagement have also been linked to lower absenteeism and fewer workplace accidents.

Why is employee engagement important?

“You can have the best services and best team, but if you don’t have engaged and enthused employees it won’t matter,” says Maryanne McWhirter, Sr. Inbound Marketing and Sales Consultant for LeadG2.

There’s no aspect of your business that isn’t affected by employee engagement. Your employees are the engine that makes your business function. And when those employees feel invested and respected, that engine performs at its best.

That’s why decades of data from Gallup show the following benefits of employee engagement:

1. 10% Higher Customer Loyalty

From sales to service, highly-engaged employees deliver a great customer experience.

Again, Kayla from Seismic tells us “When we do [employee engagement] well, we can attract, develop, and retain the best talent, which means our customers are more likely to be well-served.”

2. 23% Higher Profitability

It makes sense that higher customer loyalty would lead to increased sales and reduced service costs. But highly-engaged employees also reduce costs associated with turnover, absenteeism, and injury.

3. 18% Boost in Productivity

When employees feel connected to their work, they work harder. They’re also more likely to go above and beyond their daily tasks. Engaged employees are more likely to suggest new ideas and innovate new processes.

4. Up to 43% Less Turnover

Highly-engaged employees feel recognized and rewarded. They understand their growth potential and see development opportunities ahead.

On the flip side, the Gallup study also shows that 74% of disengaged employees were actively looking for new employment.

5. 64% Fewer Workplace Accidents

It’s easy to get complacent about routine tasks, which can lead to carelessness. But when employees are engaged they focus on the work they’re doing. They’re also more aware of their surroundings, and more likely to follow safety rules.

6. 81% Lower Absenteeism

Whether because of increased drive or decreased burnout, engaged employees are more likely to show up.

This doesn’t mean normal sick-days or personal time. Absenteeism refers to habitual and intentional unscheduled absences. The kind that, according to the Society for Human Resource Management (SHRM), reduces productivity by 36.6% as co-workers take on added work.

How to Measure Employee Engagement

Measuring employee engagement can be Classy Database

difficult because it’s a subjective experience. To get a full picture, you need to pay attention to both the quantitative and qualitative signs.

• Seek ongoing feedback. Individual conversations are one of the most powerful ways to discover engagement levels. Ask if your employees feel valued. If they understand their growth potential. If they have the resources they need to do their job.

• Find your Employee Net Promoter Score (eNPS). Your eNPS is a great way to get a snapshot of employee sentiment. This is especially helpful when you also give your employees a chance to say why they gave the score they did.

• Watch your rates of absenteeism and turnover. Spikes in these metrics are common symptoms of low engagement, and a sure sign something has gone wrong.

• Do exit interviews/stay interviews. Exit interviews can be a good source of candid and honest feedback. Just be sure these interviews aren’t the first time you’re asking these kinds of questions.

How to Improve Employee Engagement

Employee engagement should be thought of as an ongoing process, like developing your company culture. Engagement isn’t about ping-pong tables and casual Fridays. There are no quick fixes, so think about the full picture instead.

With that in mind, here are some strategies to consider for improving employee engagement:

1. Start with a plan.

Poirier from Zoominfo suggests, “Taking the time to askClassy Database

questions like ‘Who is our typical employee? What does their work-life balance look like? What challenges do they face? What do they need and what do they want?’ We know good marketing strategies lead to increased revenue; employee experience works the same way. When companies treat their employees with the same thought and care they do with customers, everybody wins.”