The Impact Of Employee Engagement On Productivity

by Kylee Stone Dec 2,2023

The People Strategy Leaders Podcast

with Srikant Chellappa, CEO

Employees who are engaged with their work and feel a sense of commitment to their employer are more productive. Their motivation goes beyond personal factors, making them more focused and driven than their disengaged colleagues. They are efficient and driven toward organizational success.

In this article, we will discuss the relationship between employee engagement and productivity and how they drive key business outcomes.

What is Employee Engagement?

Employee engagement is an approach at workplaces that motivates employees to stay committed to their organizational goals and to do their best at work. It can broadly be defined as the extent to which employees are invested in their job and put in the amount of effort that is needed to get a job done. Engaged employees are more motivated and productive than their counterparts.

The Link Between Employee Engagement and Productivity

Engaged employees frequently stand out as top performers, consistently surpassing their job requirements and going the extra mile. This heightened dedication directly translates to increased employee productivity and project success. A research by Gallup revealed that companies with higher employee engagement experienced 21% boost in productivity compared to those with lower engagement levels.

Don’t let low employee engagement levels impact your business. Download our step-by-step guide to understand and implement employee engagement surveys and boost your workforce productivity.

Employee Engagement Survey

How does Employee Engagement Increase Productivity?

Employee engagement has a direct impact on the key business outcomes of an organization. It helps in building a dynamic, focused, and skilled workforce that is ready to take challenges head-on. Furthermore, an engaged and happy workforce contributes to brand building and makes it more attractive to job seekers. The following points highlight the impact of employee engagement on employee performance.

Also read: How Can Leadership Drive Employee Engagement?

Satisfied And Happy Employees

There is no doubt that engaged employees are more productive than their counterparts but they are also more happy and satisfied with their jobs. They tend to be more diligent, motivated, and passionate about their work. Focusing on employee engagement helps you create a positive workplace culture that drives organizational success and employee productivity. When employees are satisfied with their job responsibilities, they put extra effort into what they are doing and improve their overall performance.

Improved Customer Experience

A customer-centric approach always adds value to an organization. Focusing on employee engagement helps you fill the gap between how the company treats its employees and how the employees treat their customers. Engaged employees tend to be happier and thus tend to provide a better customer experience. When the customers are happy with the service provided to them, it eventually leads to the success of your business.

Also Read: 7 Reasons why goal setting is important

Innovative Work-approach

Repetitive tasks lead to disengagement and loss of interest in employees. When you focus on employee engagement and design a challenging workflow for your employees, the way of approaching their workplace goals changes. Employees tend to use a more innovative approach to achieve their goals.

Better Employee Retention & Talent Acquisition

It is a known fact that the more an organization focuses on its employees’ happiness and satisfaction, the more loyal the employees are to the organization.

According to Gallup, organizations with highest performers have three things going for them:

(1) they have tenures of a decade or more in their organizations
(2) they are engaged in their work and
(3) they are in roles where the expectations of the job align well with their innate talents. Each variable affects outcomes on its own, but the highest performance comes from the combination.

When your organization focuses on employee engagement and satisfaction, it not only attracts quality talent for your company but also helps you retain your existing employees better.

Also read: Tips To Stay Engaged As A Remote Worker

Employee Engagement Increases Productivity

Employee productivity is important to any business. The more productive your employees are, the more successful you’ll be as a business. According to Gallup, highly engaged teams are 21% more productive and have 28% less internal theft than those with low engagement. Engaged employees are innovative and always have an idea or two about what they can do better. The quality of being collaborative and enthusiastic towards work, allows them to complete their workplace goals more effectively; which leads to increased workplace productivity.

Also read: What To Do When Your Engagement Initiative Fails?

Much research has shown the relationship between employee engagement and productivity. Organizations that are heavily invested in their employees reap multiple benefits. In the last two years, organizations have understood the importance of employee engagement in the workplace and have started focusing on inculcating engagement initiatives to increase employee productivity. By using employee engagement software, organizations can make a great impact on their workforce and can enhance their overall performance.

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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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