7 Reasons employee engagement is gaining importance

The Shift Towards Employee Engagement

Recently, we’ve seen a growing focus on concepts like employee experience, employee satisfaction, and employee engagement. Traditionally, organizations motivated employees with rewards and benefits. While these perks generated short-term satisfaction, performance often declined once the benefits were withdrawn.

Seeking long-term motivation led to the rise of employee engagement. Organizations now embrace it because of the numerous benefits it offers. Various surveys and studies have shown that engaged employees are more productive, especially highlighted during the pandemic. Research indicates that 21% of people are more productive when engaged.

Benefits of Employee Engagement

  • Improved Productivity: Productivity and engagement are closely linked. Fully engaged employees give their 100% at work, leading to maximum returns and revenue for the organization.
  • Better Collaboration and Interaction: Engagement activities foster rapport among team members, creating a comfortable, cooperative, and cohesive work environment.
  • Increased Trust and Self-Satisfaction: Engaged employees feel trusted, which motivates them to deliver better results, leading to higher personal satisfaction.
  • Better Customer Retention: Satisfied employees serve customers better. Engagement ensures employees are in a clear state of mind to address issues, improving customer satisfaction and retention.
  • Positive Work Environment: Engagement sparks happiness, creating a ripple effect. Happy employees lead to happy teams, leaders, and ultimately, a positive organizational culture.
  • Market Recognition: A highly engaged workforce enhances organizational reputation. Engaged organizations are more attractive in the market and can attract top talent.
  • Alignment Towards Business Goals: Engagement activities help employees understand organizational objectives, fostering alignment across all levels to achieve common goals.

Employee engagement fosters a sense of belonging, encouraging employees to go the extra mile. It strengthens workplace culture and allows employees to express their thoughts and emotions freely. Disengaged employees can cost companies 20–25% of profits, while just 5% more engaged employees can increase operating income by 0.7% — a remarkable impact.

So, what steps are you taking to boost employee engagement in your organization? How are you creating a culture of engagement? As a first step, consider leveraging our Intranet Portal to consistently improve engagement and strengthen employee connections.

Explore our Intranet Portal and discover how it can help enhance employee engagement across your organization.