Grace Smith
November 3, 2023

Employee engagement is a term used in human resources that denotes  how invested, inspired, and passionate workers are about their jobs and the organization they work for. Employee satisfaction and engagement are closely linked, complementary concepts; satisfied workers are more likely to be involved and engaged, and engagement is an excellent sign of satisfaction.  But the existence of either one is not a guarantee of the existence of the other. Consider this scenario: happy workers are more engaged at work, and engaged workers are satisfied and happy while working. 

Engagement is a sign of how motivated an employee is- it goes beyond just satisfaction with the level of pay or compensation the employee gets. An engaged worker will inevitably be invested in achieving the goals of the business. They comprehend the organization's objectives better and think about their personal contribution to the company’s success. Engaged workers feel appreciated within the company and attach greater value to their work.

What exactly is Employee Engagement?

Employee engagement can be understood as an organizational approach that creates the ideal workspace situation for every employee to give their best outcomes each day. Such an atmosphere produces employees devoted to their organization's aims and values, motivated to contribute to the success of the organization, and improves their sense  of well-being.

Employees who are highly engaged make full use of their energy, which means they willingly go beyond what is required of them in their position. These are the kind of employees who genuinely want to advance the business, which means they deliver excellent work and are motivated to constantly improve.

A highly engaged employee would be the one who offers to show brand-new employees around the workplace, the one who would stay late to complete a task, and lend a helping hand at work events even during off hours. .

The building blocks of an effective employee engagement strategy are collaboration and rapport between people and their employers. Leadership should set an example by adhering to the organization's fundamental principles, taking an interest in the business, promoting professional growth, and shaping each employee's goals to increase the level of engagement.

Why is Employee Engagement Necessary?

Retaining the best employees is one of the biggest challenges faced by many companies in the rapidly evolving business climate of today.

A recent study of over 600 American firms with 50 to 500 workers found that 63.3% of businesses believe that keeping employees is more difficult than finding new ones.

These enterprises are finding that employee involvement does not equate to employee happiness or satisfaction. Even though these ideas are related, they are not the same thing, and dedicating resources and effort for employee engagement is a valuable investment in this day and age.

All organizations must prioritize employee engagement because having useful strategies in place improves workplace culture, lowers staff turnover, boosts productivity, fosters better working relationships with clients, and has an overall positive influence on business profits.

The Value of Employee Engagement

Engaging the best employees in the workforce early on is essential to preserving the optimal quality of your final products or services.

Retaining top talent ensures that all the hard work that goes into keeping a company successful does not go down the drain, especially in an environment where having a steady career with one company is becoming less and less prevalent.

No matter how hardworking or generally well-suited an employee is to your business, if you don't factor in how to encourage their passions and individual requirements throughout their work life, their interest and the extent of engagement will drastically decline.

A significant problem for employers is that only a mere 36% of American workers are considered to be truly involved at work.

Management and leadership teams frequently ponder the significance of employee involvement. The following results attest to its beneficial effects on your business.

How Does Employee Engagement Increase Productivity

Organizations with higher levels  of employee engagement experienced a 21 percent rise in productivity, based on a meta-analysis by Gallup. Engaged employees are usually the most effective and efficient workers.

Longer lived careers 

87 percent of engaged workers are less inclined to leave their present employer. While over fifty percent of disengaged workers would contemplate leaving their employment  for a better offer, engaged workers are only 25% more likely to do so.

The absolute last thing you'd like to do after hiring a wonderful employee is to have to start over because they said goodbye for better opportunities. The best method to prevent that is through engagement.

Engaged workers = Better Profits

Prioritizing staff engagement doesn’t just save money;  it can also increase your business’ revenue.

Investing in keeping employees consistently engaged will pay off in the long run. Disengaged workers on the other hand lose business money.

The lost output caused by worker disinterest costs the economy of the U.S. between $483 and $605 billion a year. When it comes to hard cash, employees that are engaged are much more useful.

Need for Employee Engagement

People who feel a sense of connection to their company put in more effort, stick with the company for longer periods, and inspire others to strive for the same. Almost every significant area of your business is impacted by employee engagement, including sales, profit, client satisfaction, retention of staff, and  more.

According to research, 92% of business managers feel that motivated workers perform better, improving the team productivity and the results of their companies.

Conversely, employee disengagement can seriously harm a company's growth and profitability.

Of course, there’s no harm in admitting that it can be challenging to maintain employee engagement when you have no idea where to begin. Employee engagement tools can help you assess engagement levels and gain inisghts into employee sentiment and job satisfaction.

ThriveSparrow, an employee success platform offers a fitting solution to boost employee engagement. Seamlessly create customized surveys tailored to your organization's needs, and gain actionable data that empowers you to nurture a motivated and fulfilled workforce.

Screenshot of question banks in ThriveSparrow's Engage module

Elevate your employee engagement strategies with ThriveSparrow's Engage module. Sign up now for early access!

5 Engagement Statistics That an Employer Should Know

It's simple to make claims about employee engagement and how beneficial it is to your business, but do the statistics back up these claims?

1. Top 3 Employee Engagement-Leading Companies 

The best companies for employee engagement in 2022 were listed by Place to Work, a company that strives to create a better workplace atmosphere. The top three are as follows: 


Staff members believe that the company is trustworthy, that they care about one another, and that employees come first in all business decisions.


Workers feel the business acknowledges their spirit of independence and supports them. 

Wegmans Food Markets Inc

According to its workers, thanks to the company's numerous opportunities in career advancement and education, "employees can follow the American Dream" at Wegmans.

2. Engagement of Employees Improves Results 

A Gallup study shows that companies that have more engaged workers perform better than those that don't. The following findings were discovered by contrasting business divisions that show an increased degree of involvement with those that don't. According to its survey on staff engagement, with motivated workers:   

  • The work output will rise by 14%
  • 10% rise in customer reviews
  • 18% more revenue growth 
  • An increase in income by 23% 
  • Organizational involvement is boosted by 13%

3. Business divisions that are engaged are more successful.

The behavior of highly engaged company divisions result in 21% higher profitability, according to a Gallup survey. As per the same study, employees that are engaged are less likely to quit their jobs. 

According to the article, extremely engaged business departments achieve "59% fewer resignations" in organizations with high turnover rates and "24% fewer resignations" in organizations with low turnover rates.

4. Burnout and engagement must coexist.

According to a study by the Yale Center for Emotional Intelligence, one in five employees was extremely engaged but still in danger of burnout.

Although disengagement is frequently attributed to burnout, it makes sense that highly involved workers may also experience burnout due to overworking.

5. How can feedback fix this?

The secret to higher employee engagement is regular employee feedback.

69% of workers believe that if they feel like their efforts are appreciated, they will be inspired to work harder and be more engaged.

Similarly to this, over 85% of workers say that receiving regular business updates from management increases their motivation to work.

Ways to Improve Employee Engagement

No matter what the size or financial condition of the company is, maintaining employee engagement is always crucial. Employees are essential for the success of a company. Many businesses mistakenly believe that the products they provide are their greatest asset when, in fact, their employees are the ones that keep their engines going.

Appreciating employees regularly results in a committed, enthusiastic, and skilled workforce that will pay great dividends for businesses. No matter how talented a person may be, employers that do not support and encourage their personnel will not get the most from them. 

Here are some tips to develop employee engagement:

1. Take good care of your Employees

Employees will quickly understand that the company cares about more than  making money or expanding its market position only when management honestly demonstrates their concern for the employees.

Employees should get the feeling that the organization they work for cares about their welfare. This creates a team of individuals who also actively care about each other's well-being, which leads to increased levels of productivity, workplace satisfaction, and eventual economic gain for the business.

2. Stay in touch

Ensure that employees remain pleased with everything in their workplace by connecting through regular informal conversations and performance evaluations or appraisals. You can also ask them about the workplace atmosphere, opinions of their coworkers, and even their workload and routine tasks.

Employees may feel more at ease approaching their supervisors honestly and without bias when organizations demonstrate that they appreciate criticism and implement  suggestions.

3. Offer Mentorship 

Rather than just barking instructions or micromanaging their staff, efficient administrators  usually actively mentor and guide their subordinates in the organizations. This kind of encouragement helps maintain, inspire, and develop a brilliant workforce. They have the will to stay with the organization longer, are more positive about work, and are more motivated too.

Employees will consider themselves as a valuable asset and want to perform or try harder going forward,  if managers consistently work to encourage their teams. 

4. Let them Contribute Original Ideas

Employees should be encouraged to contribute their own thoughts and ideas. Employees want to feel that their ideas are valued equally to those of management and that they have a real impact on the success of the business. According to an old proverb, "No idea is ever a stupid idea".

Therefore, if you feel that an idea brought up by the team does not fit, do not immediately dismiss the idea. Rather, speak directly and honestly to the person and then provide an explanation of why you believe the concept may not work well for the current scenario the company is facing. Employees will probably avoid pitching in with their ideas in the future when they are terrified of being overlooked repeatedly, especially when their ideas are turned down without a reason.

5. Acknowledge your Employees

You should develop the practice of consistently praising or celebrating those workers who have performed admirably, whether it was on the job or in their own personal lives. Giving congratulations to staff members in front of fellow employees also  boosts their self-confidence.

Looking to Level Up Your  Employee Engagement Strategies?

If you are looking for a business solution that could reduce a great load from your shoulders and guide you in the right direction when it comes to employee engagement, then ThriveSparrow is the best place for you!

From top management down to the employee level, ThriveSparrow constantly gathers feedback and suggests mentoring when needed, while keeping an eye on the organization's overall mission. It also helps users quickly spot issues, investigate them, and suggest workable solutions.

Make sure your employees have a wonderful experience from recruitment to exit. ThriveSparrow employs proven techniques that foster employee engagement, boost morale, and create a healthy work environment.

ThriveSparrow plays a key role in implementing training initiatives that increase employees' skills and competencies, leading to better execution and performance across the organization. This involves organizing initiatives that promote employee growth and participation.