The 10 Critical Factors of Employee Engagement in 2024

Gone are the days when employees cared more about their monthly salary than their well-being at work. 

Nowadays, employees want to get a sense of fulfillment and accomplishment from their jobs instead of dreading the idea of spending 8 hours of their day doing something they dislike. 

Companies that don’t understand this shift in their employees’ perspective will struggle to keep their employees emotionally attached to their jobs and, as a result, productive and efficient. 

That’s why understanding the key factors that influence employee engagement is crucial to helping you keep your employees from disengaging, burning out, and leaving the company. 

So, here they are. 

10 Critical Factors that Influence Employee Engagement and Motivation

People are your main asset. If you don’t meet their expectations and fulfill their needs, they will quickly disengage. And as a result, their productivity and performance will drop. 

Here are a few key things you must keep in mind at all times to improve employee engagement within your company. 

Think of these terms as your go-to employee engagement glossary that decodes the secret behind keeping your employees engaged. 

Work Environment

The number 1 factor of good employee engagement is the work environment. And we’re not talking about keeping a ping pong table in the office or organizing a pizza Friday. 

We’re talking about providing employees with a comfortable work environment where they feel safe, valued, and appreciated. If you don’t, they’ll quickly lose enthusiasm for their job, even if they like their roles. 

Creating a positive work environment involves prioritizing the well-being of your employees. 

This mostly means fostering an atmosphere where employees feel safe expressing their ideas and concerns without fear of reprisal, setting clear expectations, and keeping communication transparent. 

Fair Pay Structure

While employees care more about their well-being at work than the money they receive at the end of the month, salary is still an important component of employee satisfaction at work. 

According to Pew Research Center, low pay was the number 1 reason employees quit their jobs in 2021. 

This ties mostly to job security and financial stability, but it’s also a strong factor in how valued employees feel. If they don’t feel adequately rewarded and recognized for their hard work, they’ll resign to doing the bare minimum just to get paid. 

Unfair pay among employees is another significant factor contributing to employee disengagement. 

When an employee discovers that a colleague with the same job title is earning a higher salary, it can make them feel disrespected and become a trigger for disengagement, quiet quitting, or leaving the company altogether. 

Strong Company Culture

Keeping your employees engaged goes beyond providing them with the latest equipment, great pay, and other tangible benefits. It’s also about fostering a company culture that makes them feel part of a community with shared goals and interests. 

To keep your employees engaged, you must create a culture that enables them to keep learning and growing. Most of the time, this can be done by encouraging your employees to ask questions, participate in team-building activities, and chat with colleagues.  

The key is to show your employees that you genuinely care about them instead of treating them like robots just here to work.

Transparent Communication

When employees are feeling stifled at work, it leads to burnout and disengagement. And by stifled, we mean not feeling safe enough to express their concerns, ask for help, or seek clarification when confused. 

This fear of speaking up is common among employees, mainly due to bad management and general distrust among coworkers. Open and transparent communication can be an effective antidote to this stifling atmosphere. 

Transparent communication fosters trust and reduces misunderstandings and feelings of isolation. By openly communicating with your employees, you empower them to voice their concerns, collaborate effectively, and ultimately contribute to a healthier, more engaged work environment.

Culture of Innovation

Innovation drives your company forward, and making your employees a big part of this process is a great way to keep them engaged. 

A culture of innovation encourages employees to contribute their ideas without fear of being judged, ignored, or losing their jobs. It promotes creativity and problem-solving, strengthening teamwork and each employee's individual sense of accomplishment.  

To cultivate a culture of innovation within your company, establish a platform for employees to share their ideas and suggestions. 

Whether through a digital suggestion box or an idea management tool like Ideanote, the key is to make it easy for everyone to contribute their ideas whenever inspiration strikes.

Meaningful Work

Research shows that employees care more about doing meaningful work than any other aspect of their jobs, such as salary, rewards, or benefits. Employees who feel that their work is meaningful tend to be more engaged, satisfied, and motivated. 

But what is meaningful work? It’s a sense of accomplishment and fulfillment that comes with our jobs. When we feel like what we do doesn’t make sense, we quickly stop feeling enthusiastic about our jobs. But when we feel we’re making an impact, we get a sense of fulfillment and reward that keeps us engaged. 

So, making work meaningful is a key factor in boosting employee engagement. This means being transparent about the company’s mission, vision, and goals, as well as providing regular feedback, giving employees autonomy to do their jobs, and offering opportunities for professional and personal development.  

Strong Leadership & Good Management

DDI's Frontline Leader Project found that 57% of employees leave their jobs because of their boss. This isn’t really a surprise - we all know how having a terrible boss can contribute to frustration at work. Consequently, bad management also contributes to disengagement among employees. 

On the flip side, great managers can turn even the most disengaged employees into highly motivated workers. But what is good management? 

For starters, good managers prioritize transparent communication, actively listen to employees, and encourage them to ask for support and feedback. They also genuinely care about their employees’ well-being instead of overworking them and disregarding their needs. 

By creating a company culture that cares for and values its employees, you can foster a motivated and engaged workforce that is more likely to be productive and committed to the organization's success.

Feedback & Recognition

Employees want to be recognized for their hard work. Lack of recognition can contribute to disengagement by making employees feel unappreciated, useless, and disrespected by the company. 

Similarly, if you never provide feedback and constructive criticism to help your employees grow, they might feel disregarded and even afraid to ask for help when they’re struggling. This can quickly lead to underperformance and resentment. 

The best way to prevent this is to foster a company culture and management style that supports employee growth with open communication and continuous feedback. It’s also a good idea to implement an employee recognition tool. 

Employee Growth

According to a survey by Pew Research Center, 63% of employees who quit their jobs in 2021 did so due to a lack of growth opportunities. In 2023, employees no longer come to work just to collect their paychecks. They want to develop their skills, advance their careers, and grow professionally and personally. 

Investing in skill development training, providing mentoring and coaching to employees, allowing employees to take on new roles, and promoting internally are a few practical strategies companies can use to help employees grow within the company. 

Diversity, Equity, Inclusion & Belonging 

Diversity and inclusion are not just about "fitting in" with societal requirements. They’re critical for creating an environment where everyone feels valued, heard, and has equal opportunities. This means consciously creating a team where everyone’s ideas, talents, skills, and unique perspectives matter. 

Companies embracing Diversity, Equity, Inclusion, and Belonging (DEIB) recognize that diverse perspectives enhance creativity and problem-solving and lead to a culture of innovation. 

In fact, Deloitte’s study found that embracing DEIB leads to a 53% increase in productivity, a 46% increase in competitive advantage in the industry, and a 39% increase in innovation.