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Why Having Engaged Employees Is Good For The Business

Why Having Engaged Employees Is Good For The Business
Photo by Alex Kotliarskyi / Unsplash

Every business leader knows that high employee turnover can seriously harm an organization. When employees continually leave and must be replaced, this can hinder a company's output, cause significant financial strains, and negatively affect its working culture.

Aside from the considerable cost of hiring, recruiting, and training new personnel, regular resignations can lower the productivity among the remaining staff since they have to take on the workload of the departing employees. Overall morale also goes down because seeing colleagues leaving the company so often can create uncertainty and a negative mindset within the group.

Thus, as a business leader, you must pay attention to your employees' well-being, constantly finding ways to minimize turnover and improve retention. One effective strategy you can apply in your organization is to increase employee engagement, which refers to your employees' enthusiasm, dedication, and emotional commitment toward their work and your company.

Employee engagement is often proportionate to the involvement, motivation, and passion employees will exhibit in their work, and low engagement often results in decreased productivity and increased turnover. On the other hand, engaged employees care about their tasks and organization, making them more likely to stay longer to help the company achieve its objectives.

How To Increase Employee Engagement

In the past couple of years, nearly 50 million workers left their employers, primarily due to burnout and overall dissatisfaction with their jobs as well as the burden of responsibilities around child care or elder care. At present, employees might not be resigning as often as before, but it doesn't mean they remain in their jobs out of enjoyment.

A recent survey has revealed that 59% of workers are "quietly quitting," expressing a loss of interest in their current job despite still being employed by the company. Similarly, a separate study indicated that 68% of young adults mainly view their work as a means to earn a living rather than a vital component of their identity or personal fulfillment.

These numbers highlight the importance of employee engagement in the organization’s overall performance. Fortunately, your company has several options available in order to achieve this, and effective communication is one of them.

When employees have access to clear and timely information regarding your organization's plans, objectives, and updates, they feel connected and valued. You do this by holding team meetings, distributing relevant information through internal channels, and encouraging open communication between employees and management.

Recognition and rewards can also significantly boost employees' morale and engagement levels, so consider implementing employee recognition programs, offering incentives for achievements, and celebrating successes through various initiatives. If you want to lighten the mood further and add a touch of humor to the program, you can get great ideas from this list of 101 funny employee awards.

Aside from these, you can also increase engagement by investing in employees' professional growth, providing opportunities for development, promoting work-life balance, offering regular feedback and performance reviews, and building a solid and inclusive company culture.

Benefits Of Having Engaged Employees

All these adjustments would need considerable investment on the company's part, which is why some business leaders tend to overlook this or make it their least priority. However, they need to realize that the benefits work both ways because happy and engaged employees also bring many advantages to the company. Here are some of them:

  1. Improved Productivity

Engaged employees are more likely to be committed to their work, driving them to put more effort into their tasks, leading to higher productivity levels. These employees tend to complete tasks quicker and produce better quality work because they care about the outcomes. They are also more likely to show up consistently, reducing absenteeism while enhancing business stability and continuity.

2. Increased Employee Retention

Employees who feel fulfilled in their roles tend to have higher commitment levels to the organization and are less likely to leave for other job opportunities. This commitment stems from the satisfaction they get from performing their tasks, their positive relationships with their colleagues or superiors, and the respect and recognition they receive for their efforts.

3. Reduced Burnout Rate

Burnout is a state of chronic physical and mental exhaustion, often accompanied by cynicism and detachment from the job, which can affect employees’ concentration, productivity, and overall well-being, including their physical, emotional, and mental health. This can be significantly reduced when companies focus on job satisfaction levels because engaged employees are less likely to experience work-related stress and pressures due to their emotional connection and alignment with the organization's goals.

4. Better Teamwork and Collaboration

A positive work environment is one key aspect of employee satisfaction that can promote teamwork and collaboration. Satisfied employees tend to have a more constructive attitude that positively influences those around them, and this contagious and uplifting atmosphere not only fosters camaraderie but also encourages open communication, making it easier for team members to collaborate and exchange ideas.

5. Enhanced Customer Service

A happy and engaged employee creates a welcoming atmosphere for customers, making them feel more comfortable and fostering positive experiences. This is because they are more likely to express genuine enthusiasm and optimism, which customers can feel in their interactions. Moreover, the strong commitment and loyalty that engaged employees feel toward the organization inspires them to represent their employer in the best possible way.

6. Improved Innovation and Creativity

Innovation and creativity are fundamental to business growth and competitiveness, and employee engagement is a significant factor that can drive these because it prompts a deeper understanding of the business and its challenges. Aside from fostering a breeding ground for innovative solutions, engagement drives employees to show a proactive attitude, take initiative, and think outside the box to contribute to the organization’s success.


Daniel Jack

For Daniel, journalism is a way of life. He lives and breathes art and anything even remotely related to it. Politics, Cinema, books, music, fashion are a part of his lifestyle.