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8 benefits of employee engagement, backed by research

Chioma Ugwu

Team Building Expert & Storyteller

Research shows that only 34% of employees are engaged in the US. If you're looking to improve employee engagement, you're not alone in this.

We’ve outlined some of its benefits, as well as some simple yet key ways to improve employee engagement in your organization.  

To learn more about employee engagement and team building, you can check out some of our posts on the best virtual employee engagement platforms and how to improve team building online

Key employee engagement benefits and statistics

Companies with high employee engagement rates are more profitable and productive

According to Gallup’s research, businesses and work units in the top quartile in employee engagement proved to be 22% more profitable and 21% more productive than businesses and work units in the bottom quartile. 

Businesses lose up to $550 billion annually because of poor employee engagement

Gallup estimates that companies in the U.S. lose between $400 to 550 billion in productivity due to disengaged employees. 

37% of employees believe that recognition can help with employee engagement 

Reports by O.C Tanner show that 37% of employees believe the most important way a company can contribute to their engagement and success is through recognition. 

Additional resources: Employee engagement statistics

The top benefits of employee engagement for your employees 

Lower risk of burnout

By keeping your employees engaged, you lower their risk of experiencing burnout. 

Lower workplace stress

Engaged employees are more likely to recognize high stress levels and manage their stress accordingly. They’re also more likely to seek help or support from coworkers or managers because they feel a sense of belonging at work. 

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4 key benefits of high employee engagement to your company 

1. Improved productivity

Gallup’s research shows that companies with high employee engagement are 21% more productive than those will lower ratings.

Employees engaged in their jobs are more productive than their disengaged counterparts because they are more enthusiastic and feel more connected to their work. Because they are personally invested in their jobs and organization, they pay more attention to the quality of their work and are committed to seeing their company succeed. 

2. Lower absenteeism

Engaged employees are more likely to show up to work and actually do the job. In fact, there is an 81% difference in absenteeism between highly engaged business units and business units with low engagement rates. 

3. Better customer service

Engaged employees build better customer relationships and establish more organic growth. 

And when your customers are happy, that’s good business for you. According to Gallup, highly engaged business units experience 10% higher customer ratings and 18% higher sales. 

4. Happier employees 

According to The Happiness Index, employees who feel valued and recognized (key markers of engaged employees) are happier in their workplace than other employees. 

Benefits of employee engagement for managers

Less time spent correcting sub-par work 

When employees are engaged, they put more effort into their work and pay attention to the quality they produce. As a manager, this benefits you because you’ll spend less time correcting mistakes and errors in their work. Research shows that engaged employees outperform their counterparts by up to 202%

Employees speak positively about your team

Engaged employees are more likely to speak well about your team and managerial abilities because they are satisfied and with their jobs and work environment. 

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How to increase employee engagement in a few, simple ways

Here are some ways to keep your employees engaged and enjoy the benefits of employee engagement.

  • Offer support to your employees: You can do this by helping them set and achieve realistic goals, adopting a culture of honesty and transparency,  and even providing coaching opportunities to help them build on their skills. 

  • Positive work culture: This might involve offering more flexible work schedules, recognizing and appreciating exceptional workers, and establishing policies that promote equality, mutual respect, and employee protection.

  • Create opportunities for growth: Another way to keep employees engaged is by providing the opportunity for continuous development. This could involve offering courses, coaching and mentorship opportunities, and creating room for upward mobility. 

  • Make their work meaningful: You can do this by giving them more autonomy over their tasks and helping them see how they work they do benefits the team, company, and customers. 

To learn more employee engagement tips, you can check out our posts on how to increase employee engagement, employee engagement solutions, and  the best employee engagement apps

What is employee engagement and why is it important?

The first thing to know about employee engagement is that it is NOT the same as employee satisfaction. This is because an employee can be satisfied with their work, yet not be committed to their organization.

So what IS employee engagement? It is an intellectual and emotional connection and commitment that an employee has to their workplace. This level of connection encourages them to go the extra mile for the benefit of their organization.

Employee engagement is crucial because, among other things, it:

  • creates a better work culture
  • helps with retention of top talent
  • increases levels of productivity and profitability
  • improves work quality and customer relationships
  • inspires innovation

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