10 Reasons Why Employee Engagement Is Important

By Jennifer Herrity

Updated April 1, 2021 | Published February 22, 2021

Updated April 1, 2021

Published February 22, 2021

Jennifer Herrity is a seasoned career services professional with 12+ years of experience in career coaching, recruiting and leadership roles with the purpose of helping others to find their best-fit jobs. She helps people navigate the job search process through one-on-one career coaching, webinars, workshops, articles and career advice videos on Indeed's YouTube channel.

Related: How to Motivate Employees with Dr. Athina Kanioura of PepsiCo

As Chief Strategy and Transformation Officer at Pepsico, Dr. Athina makes it her mission to keep her employees motivated so they can find true success in their roles.

Companies that prioritize employee engagement are more likely to have better retention rates and increased productivity. Employee engagement refers to the steps a workplace leader can follow to promote their team members' happiness and involvement. If you lead a team of employees, you may benefit from understanding the importance of engaging them effectively. In this article, we will discuss reasons why engaging employees is essential to an organization's long-term success.

What is employee engagement?

Engaging employees means improving their working conditions to maximize their potential. It consists of aligning the employees' ideals with the organization's goal. Many companies want to allow employees to be themselves and use their unique strengths because they understand the impact of employees' well-being on productivity, retention and performance. Some common types of employees engagement include:

  • Proposing new challenges and responsibilities to employees who have the potential to accomplish more than their usual tasks

  • Rewarding employees whose achievements aid the company's growth

  • Providing events and incentives that boost morale and foster a sense of community among the team members

Related: Q&A: What Is Employee Engagement?

Reasons why employee engagement is important

Engaging your employees can produce these positive changes:

1. Improved productivity

Engaged employees are more committed to their employer. Their investment creates better communication, more positivity and pride to work for the company. Employees who invest themselves in their roles are more likely to feel happy to contribute to the organization.

You can improve employee engagement by giving challenges to those who are qualified and by encouraging those who are less inclined to participate. To handle disengaged employees, you can:

  • Have an open discussion with them to identify their reason for disengagement

  • Ask the employee how they want to grow and propose a development plan

  • Hold the employee accountable by setting attainable goals and holding regular meetings to track their progress and exchange feedback

2. Increased customer satisfaction

Engaging employees can help them feel more involved with the company's customers. When engaged employees interact with clients, they are often more passionate about their work, and this energy is likely to leave a positive impression on the client. This can create a better customer experience and can lead to customer retention.

3. Increased employee retention

When your employees feel that their manager supports them, they may be less likely to change jobs. Very often, when good performers leave a company, others may follow, which makes retention management a focus point for many organizations. Applying measures to engage employees can help increase retention and ensure your best employees stay happy and motivated.

Related: Definition of Employee Retention

4. Enhanced company culture

By making employee engagement a deliberate part of your company culture, you are stating that employee well-being is one of your core values. Employees often respond positively to this, particularly if leaders frequently ask for feedback regarding work-life balance. Happy employees often model good behavior, which promotes a productive work culture.

Related: Guide To Company Culture

5. Contribution to innovation

Engaging employees and making them feel more involved allows them to think more creatively to solve problems. Innovation keeps companies competitive, so consistent engagement can help you keep your advantages in the marketplace.

6. Better employee relations

When leaders create engagement procedures that manage talent and promote open communication, team members may be more likely to view them more favorably. This trust in management can lead to a healthy work environment, and communication can help you identify factors that contribute to employee disengagement. Here are examples of strategies to improve employee relations:

  • Team building: You can organize activities that bring workers together.

  • Career development: You may propose career advancement options to help employees reach their own professional goals.

  • Conflict management: Design procedures that can help resolve issues between two employees or between an employee and manager.

  • Employee appreciation: Make a habit of acknowledging and rewarding the good efforts of your employees, such as through a salary bonus or gift card.

  • Workplace safety: It's advisable to take measures to guarantee that the workplace is emotionally and physically safe for the employees.

Related: 10 Fun Employee Engagement Activities To Implement in the Office

7. Healthier employees

When you improve employee engagement, you want to consider their emotional and physical health. You can do so by providing ways for them to stay healthy and feel happier while at work.

To foster emotional wellness, you can include plants and natural lighting in the workplace, as this can help people feel energized. Demonstrating your availability to listen and support team members when they are experiencing stress can also improve emotional well-being at work.

You can support the physical well-being of your employees by offering doctors' visits in the office, onsite vaccinations, paid sick leave and health insurance. To encourage physical exercise, you can create and sponsor an employee sports team or create fitness challenges employees can complete and track in an app.

Workplaces with on-site gyms may consider offering flexible time during the workday for employees to use the facilities. If your workplace has an onsite cafeteria, choosing healthy food vendors can help employees stay both physically fit and mentally engaged with their work.

Related: Employee Wellness Program Ideas To Help Your Company Attract and Retain Great Talent

8. Happier personal lives

Providing a work-life balance gives employees more peace of mind and helps reduce their stress levels. Happy employees bring fewer work-related concerns home at the end of the day, so they are more likely to have better quality time with their family and friends. This in turn helps them be more productive when they come back to work.

9. Positive public reputation

As a leader, you have the opportunity to provide flexibility, professional development and equality in a respectful environment. All these efforts are part of a long-term investment that contributes to better results in the workplace, but they can also impact how outsiders view your organization. If others know that your company achieves positive results because it treats its employees well, this can help you secure new clients and achieve respect in your community.

10. Attracting valuable talents

Engaging employees involves respecting employees, creating comfortable environments and encouraging diversity. Such an environment can attract the additional talent you want to recruit to your team.

Read more: 10 Employee Engagement Ideas (With Examples)

Explore more articles