What is Employee Engagement

We all hear about employee engagement day in and day out, especially in the wake of the Great Resignation. But what is it really? How do HR leaders develop and execute a robust engagement strategy? How can brokers support their clients in their engagement endeavors? We’re answering these questions and more to help you drive better business outcomes and employee experiences this year. 

What is employee engagement? 

Employee engagement is the connection employees feel towards all things work: their projects, teammates, leadership and organization as whole. It helps organizations measure how committed employees are to their work and overall business goals. The more engaged an employee is, the more committed they are. 

What are examples of employee engagement? 

Company values are the beliefs and principles that drive your business and overall mission. When employees share these values, they work more symbiotically with each other towards the company goals. While you can’t force your employees to share your values, you can increase motivation by creating an elevated day-to-day experience through engagement and small, achievable goals. 

Engaged employees feel a deep sense of commitment and purpose to their jobs and organizations. This is driven by leadership, culture, development, inclusion and self-government. Examples of cultivating these engagement drivers might look like implementing an new recognition system, a new training program or giving employees more autonomy in their day-to-day. 

Employee engagement benefits 

Employee engagement levels in the U.S. have declined in recent years with only 32% of employees engaged and 17% of employees actively disengaged as of 2022. Disengaged employees cost companies $450 billion annually due to low productivity, absenteeism and high turnover. Therefore, implementing an engagement strategy reduces burnout and stress in turn increasing productivity, retention and ambassadorship. 

Engaged employees are not only more committed to their organization, but are also: 

• Better team players 
• Have more positive attitudes 
• Increasingly motivated 
• More likely to think outside the box 
• Perform better 
• Collaborative 
• Give and receive constructive feedback 

Relationship between engagement and retention 

We mentioned that increased engagement equals increased retention, but why? Employee retention refers to the practices that companies use to keep their employees engaged and committed to staying with the company. Engaged employees feel more connected to not only their work, but their team, company and leaders as well. They form more meaningful relationships in the workplace and are therefore more likely to stay with that organization. This reduces overall turnover and the steep costs associated with it. 

Employee engagement and retention are two of the most important factors in any business’s success. Focusing on these two elements will help ensure that staff remain motivated, dedicated and productive. Again, employee retention is the measure of how long employees remain with an organization. When employees are engaged — that is they feel connected to their work and the organization overall — they are more likely to stay at a company longer, leading to increased loyalty and improved performance. Without it, a lack of engagement can lead to low morale, high turnover rates and reduced productivity. 

Both retention and engagement factors can be measured through surveys, interviews or focus groups. Employee engagement software can help businesses gain insight into job satisfaction levels among their staff. We’ll touch upon this briefly below. 

The first step in creating an environment where employees are engaged and retained requires businesses to invest in developing meaningful relationships between workers and managers. This could involve regular meetings or activities designed to build trust and improve communication. 

Ultimately, the key to successful employee retention is creating an inclusive workplace environment that values and rewards the contributions of each individual. Having an effective employee engagement and retention strategy in place will help your business create an environment of trust, communication and reward. By implementing these practices, businesses can ensure their teams are engaged and motivated to stay with the company for the long-term. 

Why is an employee retention program important? 

No matter the size of the business, employer-led programs for retaining employees are a worthwhile endeavor. Having one can help create a positive work environment, reduce turnover, and improve overall job satisfaction among your team. When you view your staff as an investment in the future success of your company and prioritize meeting their needs, everyone wins. 

How to Improve Employee Engagement in the Workplace 

Employee engagement doesn’t just happen on its own. Organizations must determine their employees’ pain points, understand what will influence their unique workforce and define specific initiatives to prioritize as a part of their engagement plan. 

Start by thinking big picture – what does your organization value? What is your mission? Then, survey your employees to understand their values and attitudes towards the company. From there, you can pinpoint specific engagement goals you want to work towards. 

Whose job is employee engagement? 

Employee engagement begins at the executive leadership level. They are responsible for setting the organizational culture, articulating the vision and generating buy-in at all other levels. Additionally, managers are equally responsible for creating an engaged team of employees as they work with them more directly. 

It’s important that leaders take a look at their management style. Gallup explains it like this: “[Managers are] either an engagement-creating coach or an engagement-destroying boss, but both relationships affect employee behavior.” By taking a “coach” management style, employees feel empowered to take on challenges knowing they have someone in their corner cheering them on and acting as a sounding board. On the other hand, the “boss” mentality to management is more transactional; tasks are handed out and results are reported back leaving little room for a deeper manager-employee relationship. 

This coaching mindset to management should be reflected at the leadership level as well. Many things within organizations trickle down from the top, especially company culture. When leaders act as coaches, managers are more likely to adopt that mentality too, leading to a more engaged workforce as a whole. 

Leaders of successful and productive businesses take an active role in creating a positive and motivating environment for staff. They demonstrate respect and recognition of their employees’ ideas, efforts and achievements. These leaders communicate openly and frequently — not just during annual performance reviews. They hold regular meetings where everyone has a chance to share their thoughts and concerns freely and openly. 

Leaders should also ensure that their staff have access to the resources they need to do their jobs effectively. This includes providing adequate training as well as up-to-date tools and technology to help them work more efficiently. As effective employees tend to direct themselves, if they request certain tools and technology to complete their job, it’s probably a good idea to listen. 

Leading by example and taking a proactive approach towards employee engagement can go a long way in creating an environment where staff feel valued, respected and motivated — resulting in better retention rates and improved performance over time. 

What are the drivers of employee engagement? 

Before you can gather employee feedback and implement new engagement activities, it’s important to understand what affects an employee’s feelings towards their work. From the leadership level to the team level, there are many influencers driving engagement (or lack thereof). 

• Sense of leadership: Employee engagement levels start at the top of an organization and trickle down. C-Suite leaders set the tone, vision and culture and managers help implement that within their teams. Is your company culture fostering the engagement you want? Has the right vision been communicated properly throughout the organization? An employee’s sense of leadership directly impacts where they see the future of the organization going, and whether they picture themselves there. 
• Sense of team: How an employee feels about the team they are on directly impacts their feelings towards work as well. What team dynamics are at play? Are team members collaborative or competitive? Are managers fostering diversity and inclusion? It’s important to make sure the culture envisioned at the leadership level has been properly implemented at the team level. 
• Sense of responsibility: Employees who have ownership over their work, feel their day-to-day aligns with their expectations and understands how their work impacts the business overall are more likely to have job satisfaction. When an employee doesn’t feel responsible for their work or large-scale business outcomes motivation and productivity decrease drastically.  
• Sense of self: Employees who have say over what their day-to-day looks like and have a healthy work-life balance are more engaged. It’s important for managers to empower employees to take control of their work and foster a sense of autonomy. This not only creates a healthier work environment but reduces stress and burnout. 
• Total rewards: While feelings towards work, teammates and leadership are key engagement drivers, total rewards might be the most important. Culture and goals aside, if an employee doesn’t feel they are compensated fairly, they will not be motivated or engaged. A strong total rewards package should show the organization cares for employees’ physical and mental health and safety via fair pay, PTO plans, core and ancillary benefits and more.