Employee Engagement : Why Is It Important For Organizations?

by Kylee Stone Apr 13,2021

The People Strategy Leaders Podcast

with Srikant Chellappa, CEO

According to Gallup, only 33 % of American workers are engaged in their jobs, 52% were “just showing up,” and 17 % described themselves as “actively disengaged“.

You all must have heard about the term employee engagement numerous times in various HR blogs, articles, or research. This is because it is important and is crucial for an organization’s success. It has been a constant topic of discussion among HRs and senior leadership for eons now. But during COVID times, when everyone started working from home, it became even more crucial. Let us take a look at some of the benefits to understand why it is important.

Also Read: 5 Employee Appreciation Ideas For Your Remote Team

But What is Employee Engagement? 

Often the term “employee engagement” is used interchangeably with employee satisfaction or happiness, but they aren’t the same. It is not only the level of satisfaction or happiness that one has at work; it is more than that. Engaged employees are committed to their job, intrinsically motivated, perform their best, and go above and beyond their call of duty. An article on Forbes defines employee engagement precisely and simply as the ‘emotional commitment that an employee has towards the organization and its goals’.

Employee Engagement Improves Employee Retention

One of the key reasons why employee engagement is the buzzword for all HRs is because it improves retention. It is a no-brainer for anyone that engaged employees tend to stay with an organization for a longer period of time. It reduces employee turnover and the cost of employing and training new employees. Employee disengagement is one of the major causes why organizations lose out on their best employees, and it often creates a domino effect.

As per Gallup, ‘engaged and thriving’ employees are 59% less likely to leave their jobs, so organizations must keep their employees engaged.

Also Read: Looking To Be An Effective Leader? Here’s How

Engaged Employees Are More Productive 

Engaged employees are more productive when compared to their disengaged counterparts. They will work faster in lesser time and make fewer mistakes, thus saving on business hours and money. They are interested in the work they do and feel a sense of pride in doing so. Not only this, they have a high level of commitment and go the extra mile to get the job done. This improves the productivity of the employees and the organization.

Reduced Absenteeism At Work

Harvard Business Review reports that absenteeism is 37% more in disengaged employees. Disengaged employees don’t feel a sense of responsibility towards the organization, and they do not think twice before taking leaves. When an employee quits the organization, it is easy to fill the position. But when an employee remains absent, it is difficult to do so, and at the same time the organization has to make sure the work is completed.

Also Read: 5 Best Tips To Reduce Employee Turnover

Higher Levels Of Customer Satisfaction

In the words of the great Richard Branson – “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.” Customer satisfaction is directly related to the engagement levels of the employee. The more engaged an employee is, the more satisfied, committed, and happy the employee is at work. They align their personal and professional goals to the organizational goals, and work hard to provide a better customer experience.

More Innovation At Work

Employee engagement helps in channeling out the best from the employees. An engaged employee does more than their role calls for. They continuously work on improving the products and services of the organization. It leads to fresh and new ideas and innovation at the workplace.

Organization Grows Financially

Increased productivity and efficiency of employees impact the overall profits for the organization. The latest research trend shows that highly engaged organizations are 21% more profitable than their peers. In turn, the organization should take active steps to invest part of the profits in employee engagement activities. This will help the organization to have consistent employee engagement and profitability.

Also Read: 360 Degree Feedback:The Benefits and The Challenges

Employee Engagement Improves Job Satisfaction

The ultimate goal of employee engagement is to improve employee job satisfaction. Although employee satisfaction and employee engagement might sound synonymous, they are different. Employee satisfaction is simply how happy or satisfied employees feel while at work. Employee engagement directly impacts the job satisfaction. A satisfied employee looks forward to going to work every day and feels enthusiastic about the same. They feel a greater connection with the organization and work efficiently, increasing productivity.

Want to know how Engagedly can help you with employee engagement? Then request for a live demo.

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Kylee Stone

Kylee Stone supports the professional services team as a CX intern and psychology SME. She leverages her innate creativity with extensive background in psychology to support client experience and organizational functions. Kylee is completing her master’s degree in Industrial-Organizational psychology at the University of Missouri Science and Technology emphasizing in Applied workplace psychology and Statistical Methods.

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