How Employee Engagement Boosts Productivity

June 9th, 2023

Employee engagement and productivity are two closely tied-up concepts that positively influence each other in the workplace. Employees who feel valued in their work environment and know how their efforts contribute to the overall objectives are more likely to drive productivity. That's why making employee engagement an integral part of your company culture is essential for attaining higher productivity levels.

Having higher labor productivity, companies that engage employees outperform their competitors and achieve greater economic growth. Hence, employee engagement serves as the foundation for overall success and increased job satisfaction. Creating an employee engagement strategy that is aligned with the company goals can be challenging but it definitely brings better business outcomes.

Let's first examine how employee engagement works and then how maintaining employee engagement can lead to productivity growth.

What Does Employee Engagement Look Like?

Gallup defines employee engagement as “the involvement and enthusiasm of employees in their work and workplace.” When employees feel like their work matters and their company values their contributions, they are far more likely to show up to work each day eager to do their job. This mentality can dramatically reduce rates of absenteeism, improve both efficiency and quality and inspire your workers to consistently perform at their best.

But what, exactly, do employee engagement strategies look like? 

The most effective ways to improve employee engagement involve efforts to center your company culture and values around creating a more fulfilling and healthy work environment for your workforce. These strategies could include:

  • Programs and policies that show you value your employees (e.g., wellness programs, work-life balance, active communication, creating a culture of trust and transparency)
  • Encouraging continuous feedback
  • Recognizing and rewarding employees for stellar work and accomplishments
  • Improving your onboarding process
  • Investing in career development and employee education
  • Developing and adhering to core company values

If you’re curious to learn more about how investing in employee engagement strategies like these can boost productivity at your company, keep reading!

Engaged employees are more focused and motivated

Engaged employees are more productive than disengaged employees–according to a recent employee engagement research, Gallup study, by almost 18%. Having a positive emotional connection with work and other team members, an engaged employee is more encouraged to go the extra mile for business goals. They are ready to take action and willing to give their best shot to improve the company's economic performance and business productivity.

Engaged employees are more invested in their work because they believe in their company mission and feel like their contributions are valued. They are aligned with team and company goals, and therefore more likely to understand their responsibilities, stay on task, and will often go the extra mile to complete their work.

Engaged workers are less likely to skip work

Another important way that employee engagement impacts productivity is by reducing rates of unscheduled absenteeism. Job-related anxiety, stress, and burnout often contribute to employees missing work or taking unscheduled days off. This can negatively impact an organization’s finances. In fact, unscheduled absenteeism is estimated to cost U.S. companies around $225.8 billion each year.

Employee engagement strategies like comprehensive wellness programs, a commitment to providing work-life balance, and creating a psychologically safe place to work can go a long way toward increasing employee morale and mitigating job-related anxiety, stress, and burnout. When employees have these resources and are empowered to speak up when they feel overwhelmed, they are far less likely to skip work.

Engaged employees are more innovative

Employee engagement strategies directly affect productivity in the workplace. Not only are engaged employees more dedicated and focused–they are also more creative. When employees feel like their work is valued and contributes to a larger company mission and goals, they are more likely to feel inspired.

Engaged workers are also empowered to communicate their questions and think independently, so they are more likely to contribute fresh ideas and creative solutions. Not surprisingly, being collaborative and enthusiastic toward work allows employees to complete their tasks more effectively, which leads to increased personal productivity.

Engaged employees make fewer mistakes

Employee engagement strategies like continuous feedback and regular one-on-ones result in a workforce that is more connected to their supervisors. When managers communicate often with their team members, they have time to clarify any expectations and curb misunderstandings. Employees are also more likely to ask questions and highlight concerns regarding projects they might be working on.

Frequent check-ins also allow managers to identify areas of improvement before they affect the company or become irreversible. This helps employees to produce better work and can save a significant amount of time that would be lost to fixing weeks or months of unchecked mistakes.

Finally, engaged employees are also more invested in their individual performance because they feel committed to and inspired by their work.

Engaged workforces are less likely to quit

Voluntary employee turnover costs U.S. businesses around one trillion dollars every year. The cost of replacing a single employee is estimated to range from 1.5 to 2 times that employee’s annual salary. Losing talent can also lower team morale, damage customer relations, and cost you some of your top thinkers and innovators. Losing your employees also decreases productivity simply due to the fact that you will have fewer team members to do the work. 

On top of these factors, it might take a new employee several months (or even years, depending on the role) to reach the productivity of the employee who left your organization. 

Luckily, investing in employee engagement can dramatically reduce rates of turnover at your organization. Because engaged employees feel a sense of connection and commitment to their work, they are less likely to seek other employment opportunities. Engaged employees also feel as if their companies value their contributions and care about their professional growth. An employee is much more likely to remain at a company if they can envision a future there.

Invest in software solutions to improve employee engagement and boost productivity

If boosting employee productivity and performance sounds appealing, you might now be left wondering how to start implementing employee engagement strategies at your own company. Luckily, performance management tools like Teamble offer simple solutions for improving engagement at your organization so that you can start witnessing the many benefits associated with a more engaged workforce.

Using tools you are already familiar with–Slack and Microsoft Teams–Teamble makes it easy to:

  • Provide continuous feedback and recognition in real-time;
  • Receive feedback from employees;
  • Hold one-on-ones with your employees;
  • Develop and distribute surveys;
  • Document interactions with your team;
  • Document engagement-related metrics;
  • Set and view goals; and
  • Establish team rituals.

For additional information on how Teamble can help you strengthen your company culture and increase employee engagement, check out our Help feature or give Teamble a try for free.