The Ultimate Guide to Creating a Culture of Employee Engagement

December 1st, 2022

Leaders in every company want to believe that their employees are committed to and excited about their work. However, this is not always the case if your organization does not actively seek to establish and maintain a culture of engagement.

Without conscious efforts to keep your employees feeling involved and invested in their work, you might find your organization struggling with turnover, high rates of absenteeism, and poor or mediocre performance. Conversely, making employee engagement initiatives an integral part of your company’s business model can boost employee satisfaction, increase productivity and quality of work, and improve retention rates.

In fact, a recent Gallup study comparing employee engagement levels found that companies in the top quartile of employee engagement experienced an 18% greater productivity and 23% greater profitability than companies in the bottom quartile of employee engagement.

However, these aren’t the only benefits of investing in employee engagement! Keep reading to learn more about why engagement has become an important part of ensuring long-term business success.

Before considering the benefits of employee engagement, it is important to understand exactly what employee engagement is. Gallup defines employee engagement as “the involvement and enthusiasm of employees in their work and workplace.” It is important to note that employee engagement and job satisfaction, although related, are not the same thing. 

Now that we know what employee engagement is, let’s take a closer look at how a more engaged workforce can boost the success of your organization.

Engaged employees are healthier and happier

Mental health and burnout are major issues facing today’s workforce. Some of the top contributors to burnout include inadequate work-life balance, feeling psychologically unsafe at work, feeling like your job doesn’t matter, and feeling like you can’t voice concerns or questions to leadership. Companies that engage employees by providing real workplace wellness programs, promoting a culture of trust and transparency, prioritizing work-life balance, and actively communicating with their workforce can go a long way toward improving the employee experience and mitigating job-related stress.

Engaged employees are less likely to leave

It is estimated that U.S. businesses are losing one trillion dollars every year due to voluntary turnover. 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. Luckily, there is a lot your organization can do to retain talent–one of the most important steps is to improve employee engagement.

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.

Engaged employees are more likely to show up

Job-related anxiety, stress, and burnout often contribute to employees missing work or taking unscheduled days off. This absenteeism is estimated to cost U.S. companies around $225.8 billion each year.

Engaged employees typically experience less job-related anxiety, stress, and burnout, and are therefore more less likely to miss work. Prioritizing employee health and well-being by fostering a work-life balance and encouraging employees to speak up when they feel overwhelmed creates a motivating environment that employees are excited to show up to every day.

Employee engagement boosts performance

One of the most pronounced differences between companies that prioritize employee engagement and those that don’t is the performance of their workforce. Most leaders understand that employees are a company’s biggest asset. However, what many still don’t recognize is that skills and experience don’t necessarily ensure great performance.

In order to get the most out of your employees, you must invest in workplace culture and employee engagement. Some of the ways engagement boosts performance include:

  • Improved productivity. Because engaged employees are more invested in the success of their company, they are more motivated to advance their organization’s work and mission. They are interested in their work and aligned with team and company goals, which makes it easier to stay on task and more likely that they will go the extra mile to do their job.
  • Better quality of work. Engaged employees are also more invested in their individual performance and are more likely to produce high-quality work.
  • Increased innovation. Engaged employees are empowered to communicate their questions and think independently, so they are more likely to contribute fresh ideas and creative solutions. They are also more invested in solving their organization’s problems because they are invested in their work and believe in the company’s mission.
  • Higher profitability. Higher levels of employee engagement can actually increase a company’s revenue–according to Gallup, by around 23%. This is because engaged employees are more efficient and often willing to go the extra mile to finish their work.

Employee engagement improves customer experience

One of the most interesting benefits of having an engaged workforce is more satisfied customers. That’s right–the health and wellbeing of your employees directly impacts the experience of your customers.

When employees are engaged, they are more likely to create a positive customer experience and offer great customer service. Workers who feel respected, appreciated, and recognized by their employer will often go the extra mile for customers.

Use performance management software to improve employee engagement at your company

Establishing a culture of employee engagement has never been easier thanks to performance management tools like Teamble. Our platform allows you to improve employee engagement, build better teams, and strengthen performance at your organization using the tools you are already familiar with: Slack and Microsoft Teams.

Using Teamble makes it simple 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.