Why Employee Engagement is Essential

Exceptional employees equate to exceptional returns, right? Well, as easy as that sounds, it’s much more complex than that. To attract and maintain ‘exceptional’ employees, you much initially focus on employee engagement. Position engagement at the center of productivity and not a factor that should be merely considered. Ensure that this is not perceived as a social responsibility move, but rather something that is a core focus within the company. Here are 5 reasons why employee engagement is essential to achieving higher financial results.


Higher productivity leads to higher returns in profit. A key driver of productivity is through greater levels of performance that are achieved through employee engagement. Engaged employees will optimize their time to work, as opposed to being distracted by potentially negative aspects of their workplace. Disengaged employees become a cost in the business as salary and wages are wasted from their inefficiencies. There are also financial and time costs relating to training and development programs as companies will not receive its beneficial return if employees are not engaged in their work. So, the question stands – how do you achieve employee engagement? A key driver of motivation is through improving employee satisfaction. Investing in employee wellness by making small changes to your workplace can have an immediate effect in generating greater focus and drive. Such changes can involve making your office pet-friendly, offering mental health workshops and providing workplace fitness activities.

Staff turnover rate

An evident indicator of the impacts of employee engagement is through the staff turnover rate. As employees are more engaged, they will be more likely to take up projects and participate in meetings or social workplace events. This will also enable greater employee retention and reduce absenteeism. However, a lack of focus on employee engagement can be costly owing to a greater requirement for casual workers to fill in the positions of those who are not present at work. Further, retaining and development of new staff to cover for the employees that have left, also present great financial burdens to a company. A potential domino effect may occur, wherein the event one person quits owing to their lack of workplace satisfaction and low engagement, it encourages more people to do the same.

Organisational culture

Ensure that you are creating an organizational culture that allows employees to be themselves, so they can work their best – effectively and productively. A positive organizational culture also attracts potential candidates to want to work within your company if it is highly regarded for its high employee engagement. As an accelerating trend within workplaces, ‘diversity and inclusion’ is a key factor that enables the success of an organization’s corporate culture. A positive and inclusive work environment will be beneficial for the business’ reputation, where employees are more likely to post positive social media messages relating to the business.


Engaged employees will be able to communicate their thoughts more clearly and confidently. Employees will feel more empowered to voice their opinions or criticisms in inefficiencies within the workplace. Ensure a regular and continuous two-way communication across all levels of the company’s hierarchy, so employees know that they are being heard and being responded to their concerns and inquiries. The more a company is transparent with employees, the more employees will able to trust and demonstrate loyalty and greater organizational commitment. Employees who are highly engaged also have the confidence to represent the company when in dealings with clients, customers or partners.

Foster innovation

Greater participation by employees allows the fostering of new ideas from those in different departments and levels within the organization that enables various perspectives. A mix of contributions and discussions can stimulate new ideas and create efficiencies within the organization. Employees will develop a higher level of creativity owing to their increased involvement with their work, looking for ways to improve their business. Higher employee satisfaction is also driven by employees deeming that their ideas and contributions are being valued in the business and are considered into final organizational decisions.

No matter how large your organization may be, always measure your employees’ engagement levels and regularly check-in with your employees. Maintaining employee engagement is highly critical to enabling employee satisfaction, improving productivity and capturing profits.