Why You Should Keep an Eye on Your Employee Engagement

Employee Engagement
Last updated
November 1, 2023

Research shows that many employees leave their jobs because they don't feel valued or supported, and thus, they become disengaged.

According to Statista’s report, 26% of employees quit due to a lack of support for their well-being, 31% due to a lack of meaningful work, and 39% because of uncaring leaders.

This proves that employees increasingly prioritize their well-being and meaningful work, making companies realize that treating them well is key to success. 

Because of this great resignation trend, the world is moving towards a more employee-centric workplace, and leaders are striving to create a supportive work environment where employees feel engaged and motivated to work. 

In this article, we’ll discuss why good employee engagement is important to your company’s growth. 

Why is Employee Engagement Important?

Your company’s success depends on its employees and the work they put into its growth. If they’re disengaged and unhappy, they won’t be willing to put much effort into their jobs, leading to sloppy work, costly errors, and delivery delays. 

On the other hand, happy employees tend to give their best to their jobs. Many big companies know this and focus on keeping their employees engaged. 

Companies such as Google, Microsoft, Adobe, and LinkedIn promote an employee-centric work environment and pay their employees well, making them feel valued and well-compensated for their hard work. As a result, they have a high retention rate and an almost unbreakable reputation.     

That’s why these companies consistently rank in the top 20 of Glassdoor’s Best Places to Work ranking. Google is known for its 20% Time rule that encourages employees to spend 20% of their work time on personal passion projects. 

Employee Engagement Long-Term Benefits

Aside from increased productivity and a high retention rate, keeping your employees engaged has many other benefits that can positively impact your company’s success in the long run. 

Here’s why good employee engagement is important for your company. 

Why employee engagement is important

Good employee engagement reduces employee turnover

A study by Bispebjerg University Hospital in Denmark found that 26% of survey respondents would quit their jobs, if economically possible, due to job dissatisfaction. 

Even if financial constraints prevent employees from quitting, being unhappy with their jobs and workplace conditions may lead them to “quiet quitting” - the practice of putting minimal effort into their jobs while continuing to work for the company. 

Unhappy employees are more likely to leave the company, resulting in a higher turnover rate. This forces the company to make new hires more often, which costs a lot of money and negatively affects productivity.  

On the other hand, happy employees tend to stay with the company for longer. It not only helps you avoid hiring and training costs but also allows you to keep top talent and employees who contribute to your company’s growth. 

📢 Employee engagement in numbers

According to research by Zippia, the average cost per hire in the United States is $4,700, and it takes 3 to 8 months for a new hire to reach their productivity peak at their new position.

Good employee engagement reduces retail loss

Research by ECR shows that boosting employee engagement in retail stores can result in a 9.8% decrease in waste, a 19.6% drop in lost profits due to items being out of stock, a 12.5% reduction in shrinkage, and a 9.5% decrease in cash losses.

That’s because engaged employees are more likely to follow best practices and store procedures, leading to fewer mistakes that may result in wasted products or cash loss. What’s more, engaged employees are also more attentive and compliant, so they’re more likely to report any issues and suspicious behavior. 

Simply put, good employee engagement leads to fewer in-store issues (such as theft, errors, or lost items) and a better customer shopping experience, which translates into lower losses and increased profits for the retail store. 

📢 Employee engagement in numbers

According to Gallup's State of the American Workforce 2017 report, engaged employees contribute to better customer relations. Engaged employees receive 10% higher customer ratings and 21% greater profitability.

Engaged employees are more productive

Engaged employees are naturally more productive. They tend to put their best effort into their jobs, leading to more quality work and better customer relations. They’re more likely to go the extra mile, providing top-notch customer service. 

This makes customers feel valued and increases the likelihood of them making a purchase, even if they didn't intend to do so in the first place. 

So, keeping your employees happy and engaged will naturally contribute to more efficient operations and increase your company’s overall production rate. 

📢 Employee engagement in numbers

According to research by Gallup, engaged employees are 22% more productive.

Better adoption of company initiatives

Engaged employees are more motivated to participate in company initiatives. 

Employees invested in their jobs will willingly and actively participate in team-building activities, brainstorming sessions, and idea collection initiatives because they feel connected to the company’s mission and have a deep sense of community. 

This creates a sense of unity and collaboration that facilitates the adoption of different initiatives, programs, and changes to the existing workflows.  

Engaged employees become brand advocates

Your employees represent your company (whether consciously or not) and have a direct influence on customer relationships and brand perception.

Employees who are engaged and happy at work often become strong supporters of your company. They become brand advocates who speak positively about the company, recommend it as an excellent place to work, and contribute to its positive reputation.

On the other hand, unhappy and disengaged employees can damage the image of your company due to their negative attitudes and interactions with the customers.  

Engaged employees are motivated to improve processes 

Engaged employees feel part of the company’s success, especially if they’re being recognized and awarded for their efforts. This sense of belonging and community motivates them to contribute even more to the company’s growth. 

Their desire to see the company thrive drives them to suggest ideas for process improvements, which may increase the productivity of internal operations and lead to the creation of profitable products and groundbreaking concepts. 

Often, the best ideas originate from the bottom - from individuals who know firsthand what works best in their day-to-day tasks and can easily spot inefficiencies in the daily processes. 

📢 Employee engagement tip

Make sure to collect all employee ideas (even those that may seem bad at first glance). To make the idea collection process easily manageable, use a digital suggestion box tool like Ideanote.

Increased profitability

Employee engagement is directly linked to company profitability because it leads to increased productivity, reduced turnover, and improved customer satisfaction, all of which contribute to higher revenues and profits.

Everything we've talked about in this article leads to one conclusion: better engagement means higher profitability. 

Investing in employee engagement strategies is a smart move for your company's long-term success because not doing anything to improve it will eventually lead to stagnant growth and, ultimately, decreased profitability. 

📢 Employee engagement in numbers

Gallup’s Q12 survey shows that engaged employees increase the company’s profitability by 23% and reduce shrinkage by 28%.

Ready to Boost Employee Engagement?

With fresh insights on employee engagement, here are some powerful steps you can take with Ideanote:

  1. Experience a Free Innovation Demo Session to discover how Ideanote can boost employee engagement in your organization.
  2. Discover how to Engage People effectively on our platform and foster an environment of innovation.
  3. Jumpstart your employee engagement journey today. Get Started Free with Ideanote and let your employees lead the way to innovation.