High levels of employee engagement are linked to increased productivity, enhanced team morale, high retention rates and better employee well-being, yet studies show that globally, only 23% of employees are actively engaged. Being proactive in championing employee engagement can have incredible benefits for business owners. In this guide, we’ll discuss the importance of employee engagement and outline some key strategies to boost engagement rates.
What is the impact of high employee engagement rates?
Employee engagement is centred on participation and involvement in work-related activities. Engaged employees take part in meetings, they care about the job they do and the people they work with and they strive to achieve company goals. Research indicates that highly engaged individuals are more likely to be happy, efficient and productive. Staff retention rates and levels of morale are also higher among engaged teams. In contrast, low employee engagement rates can contribute to a lack of team morale, high employee turnover rates and reduced profits. A 2024 Gallup report suggests that disengaged employees cost the global economy a staggering $8.8 trillion per year. Loss of interest, a lack of trust in the management and company values and feeling unappreciated can also trigger a ripple effect across teams and departments. If individuals are not engaged, others may start to notice the impact and the culture may change. Negativity can spread quickly.
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SubscribeWhat can employers do to boost employee engagement rates?
Globally, employee engagement rates are falling. The good news is that there are myriad ways to address issues and try to boost engagement rates among your team if you run a business. Your strategy should be tailored to your primary objectives, the problems you want to solve and the values and company culture you want to create and promote.
Asking employees for feedback
Encouraging your employees to provide feedback is an excellent place to start when trying to boost engagement rates. Using anonymous surveys, online polls, email questionnaires and interviews can help you gather information, find the answers to questions and collect ideas, opinions, thoughts and concerns. Take the time to analyse and evaluate responses and highlight strengths and weaknesses. Build on the positives and try to address the negatives promptly. Involve your team and use the feedback you receive to make decisions and implement adjustments or changes.
Rewarding your employees
Offering rewards enables employers to recognise achievements and encourage hard work and commitment. You don’t have to spend a fortune to treat your employees if they’ve won an award or come together to complete a project before a deadline. Simple things like buying a gift card, going out for dinner or putting some money behind the bar at the annual Christmas party can all help. Ask for ideas from your employees and track progress through an easy to use employee engagement platform and take inspiration from other companies and brands. You may find that your employees would appreciate an extra day off or an early finish on a Friday if they’ve worked overtime or they might want additional perks or bonuses if they hit a target, for example.
Creating a happy, productive workplace
Another important aspect is creating an inclusive, harmonious working environment. Define clear company values and draw up policies and procedures that align with them. Providing training for your employees can help to enhance working relationships, reduce the risk of conflict and instil respect, diversity and equality. It’s also beneficial to encourage open communication and foster a culture that makes people feel confident in expressing their ideas and opinions. Everyone should feel valued, regardless of their job title, salary or background. As an employer, it’s helpful to bring people together and promote collaboration. You can do this by organising regular meetings, encouraging social activities and facilitating team and group projects both inside and outside of the workplace. Adding a fun element to the working week can have a positive impact on mental health, morale and productivity.
Highlighting and addressing problems
Highlighting pain points is another important consideration when tackling low employee engagement rates. Does your team feel overworked, stressed or overwhelmed? Are people working longer hours than expected or taking on additional jobs due to staff shortages? Do employees feel undervalued or is there a disconnection between staff and the management? Listen to what your employees have to say and use feedback to find effective solutions. If stress levels are rising, for example, try to provide more flexibility and lighten heavy workloads. You may need to think about adding extra staff members during busy periods or adjusting working schedules to give employees more freedom outside of core hours. Stress, which resulted in 17 million lost working days in the UK in 2022/2023, can cause burnout. Burnout has a negative impact on both employers and employees.
Promoting health and well-being
A 2024 report by Gympass revealed over 90% of workers consider well-being as important as salary. As an employer, it’s crucial to understand the value of promoting health and well-being in the workplace. Taking good care of your team can boost productivity and morale while lowering the risk of health-related absences. Review your existing employee benefits package and consider making adjustments to support better health and well-being. You may wish to offer additional health benefits or add perks, such as access to therapy or discounts on gym membership, for example. Try to encourage your employees to make healthy lifestyle choices and be proactive in tackling common issues. If your employees are taking time off due to stress, or back pain is prevalent, for example, work together to find solutions.
Employee engagement has become an increasingly influential talking point among employers and workers. High levels of engagement can boost productivity and profitability while enhancing team morale, job satisfaction and well-being. There are many ways business owners can improve rates and champion employee engagement, including encouraging communication, asking for feedback and ideas, outlining key company values and promoting health and well-being in the workplace. It’s also beneficial to reward success and hard work and be proactive in tackling pain points. Working collaboratively with employees can help employers understand what matters most to their team and identify problems to solve.
