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Importance of Employee Engagement

by David Pinto


How to define engaged employees?

Employee engagement is a term used to describe the emotional commitment that an employee has toward an organization where he or she works. The concept of engagement is similar to that of loyalty; however, it differs in that an employee can be both engaged and loyal but not necessarily engaged and disloyal. Employee engagement is important to other factors, such as employee satisfaction and employee advocacy, as well as business outcomes.

Although no single definition of employee engagement exists, most experts agree that employee engagement means more than simply measuring employee satisfaction. It encompasses how employees feel about their jobs and how strongly they commit to their companies' goals.


Why is employee engagement important?


The benefits of employee engagement include:


Higher productivity

Engaged employees have higher levels of productivity and job satisfaction, so they’re more likely to be motivated, productive workers. They also tend to be more loyal and less likely to

leave their jobs in search of other opportunities than disengaged employees. An engaged workforce stays true to the company mission, and engaged employees lead to a successful business with customer satisfaction.


Lower turnover

Employee turnover is expensive for businesses, so when employees feel engaged in their jobs, you can expect lower turnover rates, which lead to lower recruitment costs and faster onboarding times for new hires. This also leads to greater professional development amongst employees, which further contributes to the company's success. Therefore, employee retention is better in engaged employees than actively disengaged employees.

In fact, a study by Schuler Research shows that companies with high employee engagement scores have a 30% lower turnover rate than those with low scores. Additionally, Gallup estimates that replacing an employee costs between 50% and 200% of their annual salary — so if your turnover rate is high enough, it could cost you tens of thousands or even hundreds of thousands per year in lost productivity and lost revenue!


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How to measure employee engagement

Employee engagement can be measured by analysing employee behaviour and business outcomes. It is important to measure levels of workplace stress, the company's goals and whether these are met, the company culture, and mental health within the company.

ELEFense can be used to measure employee engagement within business units since the behaviour of highly engaged employees greatly differs from disengaged employees. This can alert Human Resources departments in real time if there is a problem in employee engagement and employee communication, as well as company culture. These employee engagement statistics can then be used to give actionable insights into how to improve employee engagement and hence business success.


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This is more effective than employee engagement surveys since an employee engagement survey requires employees to be truthful in their answers, and this does not provide real time feedback on organizational performance.





Best ways to improve employee engagement

Work environment


Ensure that the work environment in the office is positive and ensures employee engagement and employee productivity. This will motivate employees to work towards the company's success.


Team building

Team building activities should encourage employees and connect employees with other employees to improve employee engagement and improve business outcomes. This should enable greater employee engagement and organizational success.


Employee feedback

Listening to what employees think about employee engagement is important to move the organization forward in the company's mission. Receiving feedback from employees about mental health issues, satisfaction regarding their current job, business strategy, and customer relationships encourages employees to actively be engaged in their jobs.


Welcoming new hires

When starting a new job, new hires should be introduced to the entire organization, and during the hiring process, it should be determined whether they align with the company's culture. This will ensure whether they are a good fit for the company. This will mean that new hires go into their job with a positive attitude. This will help to improve employee engagement further down the line.


Encouraging professional development

Highly engaged organizations consistently develop their employees' skills and encourage knowledge sharing amongst employees. Not only does this provide better business outcomes and company success, but it also makes employees feel connected with one another, improving employee engagement and employee loyalty.

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