What Is Employee Engagement, Why It Matters And How To Improve It

You might have heard the term ‘Employee Engagement’ buzzing around in the corporate world. It has emerged as a crucial factor driving a company’s success. But what exactly is engagement, and why is it so important?

Employee engagement, in essence, can be referred to employees who are committed to their work and passionate about making a significant impact within their organization. The level of employee engagement is directly proportional to the success of the company. When businesses implement practical engagement ideas, the employees feel motivated to put in extra effort, which leads to higher profits, attracting and retaining top talent, a safe work environment, and low employee turnover.

With a plethora of engagement ideas available, selecting the most effective ones can be a daunting task. This is where specialized tools come into play, designed specifically to streamline this process and ensure optimal results. To navigate through this maze of options and avoid any confusion, you can visit our employee engagement software category page to better understand these tools.

Key Takeaways:
  • Employee engagement measures the commitment and passion your workforce has toward their role
  • It is closely tied to job satisfaction and overall morale within the workforce
  • Employee engagement exhibits higher productivity and superior performance
  • A high level of employee engagement can lead to lower turnover rates

What Is Employee Engagement?

Employee engagement is a concept that measures the level of enthusiasm, loyalty, and dedication a worker feels toward their job responsibilities. An engaged employee doesn't just care about their tasks; they're genuinely interested in doing them the best way possible. They truly believe they can make a difference in the workplace.

An engaged employee:
  • Focuses on training and development
  • Have a clear understanding of their responsibilities and roles
  • Are self-motivated
  • Understand the importance of their contributions

Employee Engagement Definition

Employee engagement can be defined as the mental strength and emotional connection of an employee towards their organization and team. In simple words, it refers to how invested employees are in achieving the organization’s goals.

An engaged employee is not only working for a promotion or paycheck but also has high productivity. They are emotionally invested in their work and motivated to contribute positively to the company's success.

Levels Of Employee Engagement

Levels Of Employee Engagement

 Now that you understand workforce engagement, employees can be categorized into groups based on their perceptions of the workplace. These include:

  • Highly Engaged Employees: These employees have positive opinions of their workplace and often act as brand advocates. Such people talk highly of their company and encourage their fellow workers to do the same.
  • Moderately Engaged Employees: Such employees like their companies; however, certain factors are stopping them from pursuing full engagement. It could be something in their company, colleagues, or jobs. Often, such workers underperform and may not like to get extra tasks.
  • Barely Engaged Employees: They lack enthusiasm for their role and tend to do the bare minimum. These employees might be exploring other job opportunities, posing a significant turnover risk. 
  • Disengaged Employees: Disengaged employees typically have a negative perspective of their workplace. They are alienated from the company's vision, targets, and long-term plans. Their dedication to their jobs and responsibilities is deficient. 

Why Is Employee Engagement Important?

Importance of Employee Engagement

A Gallup study states, “The behavior of the highly engaged employees results in 21% greater profitability.” A highly engaged employee can do more for your business as they are motivated to work harder and solve problems. Not only this, but they grow their skills faster, stay at the company for a long time, and work better with people.

Apart from these, here are some other advantages of talent engagement:
  • Higher level of customer retention and loyalty
  • Decrease in the rate of employee turnover costs
  • Studies have shown that engagement increases revenue and results in less absenteeism
  • Enhance employee happiness, strengthen your company's culture, and boost job satisfaction
  • Increase the performance of your workforce, which will help you achieve your targets

How To Conduct An Employee Engagement Survey?

How To Conduct An Employee Engagement Survey
Before we can move on to how to conduct an employee engagement survey, let’s discuss why it is important. A staff engagement survey can help you with the following:
  • Anticipate future trends
  • Improve productivity and communication
  • Measure employee satisfaction
  • Promote a positive work environment
  • Facilitate strategic planning
  • Assess strengths and weaknesses


Let’s take a look at the steps to conducting survey.

Design Your Survey

The first thing you should do is draft a survey for employee engagement. This is a crucial part of the engagement strategy, and you should give it careful thought to get the best results. It is important to create your survey with intent, which means you should know what you want to measure, why you want to measure it, and who you should gather information from. Once you have these aligned with your strategy, you will be able to get feedback that provides accurate insights for you to act on.

While designing a survey, you have to keep in mind that it should be intuitive and straightforward. Employees should be able to understand the questions, and managers must be able to understand the report.

Some other tips you should follow include:

  • Make it clear whose input should be included in the survey
  • There should be a clear deadline for responses
  • It should have must-have questions
  • Don’t bring in too many people to create a team engagement survey

Ask The Right Questions

The engagement survey aims to help you identify experience gaps, address the problems, and highlight what you are doing right. It is essential to include questions that will provide valuable insights and help improve the employee experience. In your survey, consider including the following:
  • Employee Engagement: These questions will serve as a crucial measure for assessing employees’ willingness to recommend the company, their level of involvement in work, and the pride they take in the company.
  • Core Themes: These might explore scenarios that diminish or boost employee engagement with questions about communication, resources, collaboration, career progression, empowerment, strategy, and training and development.
  • Additional Themes: You can add some questions about topics other than what’s happening in your company. However, you should only include those that will prevent your survey from being too cumbersome.

Determining Key Drivers You Want To Measure

The next step is to identify the theme for measuring engagement and to develop questions that will effectively capture this information. It is advised to include 30-50 employee experience-related questions.

Here is an example of what drivers and questions you can ask: 

Engagement Drivers Example Questions
Autonomy / EmpowermentAre people empowered in their roles and able to innovate on the job? 
Career Progression Are there opportunities for people to grow and develop in the company? 
Collaboration Are they able to easily work with other teams or colleagues without barriers or conflict? 
Communication Are they getting enough info from the company about what’s happening, and do they feel they’re being listened to? 
Company Leadership 

Do employees believe in and trust their senior leadership? 

Recognition Do people feel that they’re recognized and appreciated? 
Resources Are they enabled to do their job with the equipment they’re given? 
Strategy Alignment Do they buy into where the company is going and how they’re a part of it? 
Supportive Management Are managers supporting their teams to be successful? 
Training and Development Do they feel they have the training they need to do their job? 
Customer Focus Do they work in an organization that prioritizes customer needs, and are they given the authority to take necessary actions? 
Diversity & Inclusivity Do they feel the organization is inclusive and fair to all employees? 
Salary & BenefitsDo people feel they're fairly rewarded for what they put in? 
Quality of Product or Services Do people believe in what they (and/or the organization) provide to their customers? 
Safety Do people feel their safety is critical to the organization? 
Social Responsibility Do they believe the company engages in meaningful corporate social responsibility initiatives?
Work-life Balance Do they believe the company engages in meaningful corporate social responsibility initiatives? 

If you need help with questions, we have a list of employee engagement survey providers that can guide you throughout the process.

Implement Your Survey 

One important aspect of properly surveying your employees is ensuring you have gathered plenty of responses. To do so, you should invite all your employees to take the survey and monitor the response rates. It will be better to keep your survey open for 2-3 weeks, making sure the staff have ample time to give their feedback.

Interpret Your Results

After you have collected the feedback, you can gain insights from it. Through the correct analysis, you can determine the key drivers and how to improve the problematic areas to increase employee engagement.

Employee Engagement Best Practices

The traditional employee engagement practices involved conducting surveys and gathering feedback periodically, often through annual or semi-annual assessments. However, modern workplaces require more than that. Here are some effective employee engagement best practices that can help you in this regard: 

Celebrate Accomplishments 

While it’s crucial to focus on areas that need improvement, it’s equally important to celebrate your team’s accomplishments with the employees. This not only keeps them engaged but motivated as well. 

Link Engagement to Business Success 

Make sure your engagement efforts are linked to measurable business results, such as customer satisfaction, turnover rates, financial performance, etc. This keeps the employees engaged as they see tangible results of their performance. Moreover, leaders and other stakeholders also remain invested in the entire process, thereby contributing to the success of the organization. 

Make Engagement A Strategic Imperative 

You have to ensure that engagement is an ongoing strategy rather than an occasional (and weak) effort. In the latter case, employees do not feel heard or supported, which creates a sense of disconnection and disengagement, leading to lower morale and productivity. On the contrary, when you consistently listen to employees and prioritize engagement, you foster higher engagement and productivity levels. 

How To Measure And Increase Employee Engagement?

How To Measure And Increase Employee Engagement

Are you wondering how to determine if the employees are engaged? We can assess this based on the following factors:
  • Recommendations:An employee with high engagement levels will likely recommend the company to others if they perceive it to be a great place to work.
  • Motivation: Employees are considered engaged when they express motivation to take on more work or seek additional responsibilities.
  • Accomplishment:The employee is considered engaged if they feel satisfied with their achievements at work.

Therefore, these factors will help you measure the overall employee engagement metric.

How To Increase Employee Engagement?

What is the best way to increase employee engagement and retention? It is to act on the insights you gained from the survey. Engagement is an ongoing process, not something that can be achieved overnight. There’s no one-size-fits-all approach, so you need to focus on the key drivers of engagement and identify which changes will have the most significant impact. 

There are two ways to go about it: creating changes at the organizational level or within teams. Both approaches are practical and lead to improvements in engagement and retention.

  • Macro Level: You can collaborate with the managers to determine the factors that impact everyone in the workplace. 
  • Micro Level: Many changes can be influenced by the manager such as addressing workplace issues, opportunities for career advancement, and defining clear goals. 

We know how challenging it can be to keep up with everything. Employee engagement software is essential to help you streamline the process. It provides a structured platform to measure, analyze, and improve employee engagement. You will be able to gather feedback, understand employee needs, recognize achievements, and foster a positive work culture, all of which are crucial for enhancing productivity and retaining talent. 

In the end, it all comes down to picking out the right employee engagement software. This is a crucial decision that can significantly impact on your organization’s productivity and employee satisfaction. 

The ideal software should be user-friendly, customizable to your organization’s needs, and capable of providing insightful analytics. We have a list of software that can help you:

Now that you’re aware of the importance of employee engagement, it’s time to take action. If you’re in search of software that can enhance employee engagement and bolster retention rates, feel free to contact us at (661) 384-7070. We’re here to assist you in creating a thriving work environment.