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Employee engagement: What is it and why should you care?

January 19, 2024
neon sign reading 'this must be the place'

By now, every manager has heard that employee engagement is… kinda important. However, the true bottom line meaning of this term, which is sometimes used quite elusively, often gets lost.

The truth is that employee engagement does have a significant impact on a business, its employees, and its productivity. So, what are the benefits of employee engagement?

What is the definition of employee engagement?

Employee engagement is the genuine commitment and connection of employees with their work and the business they work in. An engaged employee feels they are on a mission, and they care about their work beyond a paycheck or a promotion. In other words, it’s an active alignment of values.

Creating a work environment which supports employees and where workers feel connected with their roles, teams, and organisation, will increase employee engagement. To learn more, read our blog post ‘how to improve employee engagement in 7 simple steps’.

What are the benefits of employee engagement?

There are many benefits that are linked to employee engagement — by definition, engagement describes employees who are healthier, happier, and more fulfilled. According to an extensive Gallup study, for example, employee engagement is connected to higher profitability and safety. Here are some of the most prominent advantages of a highly engaged workforce:

1. Increased productivity

As the UK continues to plummet in productivity, businesses have been struggling to keep up. When it comes to employee engagement, there is a clear link with productivity, according to studies. They also show higher customer satisfaction, and even work efficiency — so improving employee engagement in your workplace really could be the answer to low productivity.

2. Reduced absenteeism

Absenteeism is the practice of regularly, and with no valid reason, staying away from work. This can be due to many reasons, such as high stress or a lack of interest in the job. However, it’s clear that highly engaged employees are less likely to be regularly absent from work — 81% less likely, to be precise, according to the Gallup study above. When you consider how absenteeism affects businesses — missed deadlines, reduced employee morale, and increased workloads — investing in engagement is even more important.

3. Enhanced performance

Essentially, every business works to improve its performance, and employee engagement could help tackle this challenge. Research shows that engaged employees perform better on an individual level, but also as a team.

4. Lower employee turnover

When employees feel aligned with their work and the company they work for, they are less likely to look elsewhere. According to the Gallup study, organisations with highly engaged employees had 59% less employee turnover, proving the link.

5. More creativity

Engaged employees are also more creative, according to research. As creativity fosters innovation and entrepreneurship, it’s essential for every business to nurture it. Creating an atmosphere that encourages engagement will also be translated into better creativity among teams.

Want to learn how Thrive can help you with employee engagement? Book a demo with us today.

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