Top 10 Business Benefits and Outcomes of  Employee Engagement 

Are your employees going through the motions, or are they truly invested in your company’s success? If you’re scratching your head over productivity, high turnover, or lackluster customer service, the answer may lie in engaging the benefits of employee engagement.  

Engaged employees aren’t just punching the clock—they’re committed to their work and the company’s overall mission. They’re driven to go above and beyond, and when you have a workforce that’s locked in, incredible things can happen for your business. 

By understanding why employee engagement is important for your team and customers, you can build a strategy and reap the benefits of high employee engagement! In this post, we’ll explore the key business benefits of employee engagement and how to take your workforce to new heights. Let’s get started.

What is Employee Engagement?

Employee engagement refers to the emotional commitment an employee has to their organization and its goals. 

When employees are engaged, they act like owners and put in discretionary effort that goes beyond their basic job duties. At its core, employee engagement is about creating an environment where employees feel motivated, valued, and connected to their work.

Why is Employee Engagement Important?

In today’s working world, employees want to feel enthusiastic and fulfilled in their roles. And employee engagement is one of the best indicators of employee satisfaction and productivity levels. 

Engaged employees are more productive, drive customer satisfaction, foster a positive workplace culture, and are a key factor in financial performance.

List of Top 10 Benefits of Employee Engagement 

Now that you understand why engagement is important for organizations, let’s explore the top benefits of employee engagement.

1. Increased employee productivity

When employees are engaged, they’re more motivated and invested in their work. This translates into higher productivity levels. Engaged employees are willing to go the extra mile, take ownership of their work, and consistently bring their best efforts to the table. In fact, employee engagement statistics reveal that companies with high employee engagement are an impressive 21% more profitable than those with low engagement.

Many organizations strategically create employee engagement programs with the key goal of increasing productivity. These initiatives often include regular feedback sessions, recognition programs, and opportunities for growth and development. By investing in the well-being and satisfaction of their workforce, companies can increase productivity and see the business benefits of employee engagement.

2. Reduced employee turnover rates

When employees are engaged and satisfied with their work, they are less likely to leave their jobs. This can have a significant impact on reducing turnover rates and the associated costs of recruiting, hiring, and training new employees. 

According to Gallup, low engagement teams can experience turnover rates that are 18-43% higher than engaged teams. On the flip side, disengaged employees are more likely to leave at their first chance. The cost benefit analysis of employee engagement can be staggering when you factor in the expenses related to replacing employees, including job postings, interviews, onboarding, and training, and lost productivity during the transition period.

3. Better external-facing customer service

Engaged employees go beyond expectations in their interactions with customers, leading to higher levels of customer satisfaction and brand loyalty. When employees feel a strong connection to their work and the company, they’re more motivated to provide exceptional service.

Companies can develop an employee engagement action plan to improve customer service. This plan should include strategies for fostering a customer-centric culture, providing ongoing training and support, and recognizing and rewarding outstanding service. 

By investing in employee engagement, companies create a virtuous cycle in which happy employees lead to happy customers.

4. Stronger team leadership

Leadership and management are the foundation of strong employee engagement. 

When employees feel like cogs in a machine, satisfaction, and engagement levels will plummet. On the other hand, when people know they are cared for, respected, and valued, they’ll show up to work with more motivation. 

How can strong leadership benefit employee engagement? Leadership teams can celebrate their employees with personalized employee recognition programs.

For example, employee recognition can include monetary awards like bonuses, raises, and even stock options. Some employers will go the non-monetary route and implement recognition programs where they publicly acknowledge their employees in the workplace, offer flexible work schedules, and provide mentorship and development options.

5. Enhanced company culture

Employee engagement and culture go hand-in-hand. When employees feel valued, supported, and connected to their work, they are more satisfied with their jobs and committed to the organization’s success. This, in turn, creates a snowball effect where engaged employees may even recommend other high-performers to join your organization. 

Implementing key best practices for employee engagement, like regular communication, recognition programs, and opportunities for growth and development, motivates and empowers employees. 

This positive environment not only makes the workplace more enjoyable for current employees but pulls in high-quality candidates drawn to companies with strong, supportive cultures.

6. Increased innovation and problem-solving

Engaged employees are more invested in their company’s success and are therefore more likely to contribute innovative ideas. When employees feel valued and empowered, they’re more inclined to think creatively, take risks, and suggest new solutions and improvements to products, services, or processes. 

They’re also more likely to speak up in meetings, collaborate with colleagues, and go the extra mile to solve problems. This can result in a steady stream of ideas to be tested and implemented, driving your company forward.

7. Improved quality of work

When employees feel invested in their roles, they will take pride in the quality of their work. 

Engaged employees have a stronger sense of ownership and accountability, which drives them to pay closer attention to details and strive for excellence in every task they undertake. This mission-driven focus stems from a genuine desire to contribute to the company’s success and a feeling of personal fulfillment. 

Engaged employees are more likely to double-check their work, ask the right questions, build optimized processes, and want to ensure that the final product meets or exceeds expectations. They are also more proactive in identifying and addressing potential issues before they become problems, further enhancing the overall quality of their output.

8. Reduced employee absenteeism

When employees are engaged and satisfied with their work, they’re less likely to take extra time off. 

Not only does absenteeism affect an employee’s overall performance, but it can cause problems within their own teams and leadership. Less absenteeism leads to smoother operations and less disruptions in workflow and work silos. 

Absenteeism in the workplace can have many different causes. It can occur due to personal reasons, stress and mental health, unsatisfactory work environment, lack of work-life balance and job satisfaction, and more. As an employer, it’s important to track absenteeism rates in the workplace and speak to employees that have consistently missed work days.

9. Improved business performance

When measuring the benefits of employee engagement there is a clear correlation between employee engagement and financial performance, with companies with high levels of employee engagement usually experiencing an increase in profitability and growth. 

There are a few different ways to measure ROI based on employee engagement. You can use the following measurement methods:

• Benchmarking surveys 
• Employee pulse surveys
• One-on-one conversations
• Analyzing historical and existing data 

With employment engagement metrics, you can track and measure the ROI of employee engagement to make informed decisions to leverage the business benefits of employee engagement.

10. Greater employee well-being

Improved work-life balance leads to higher levels of employee engagement and well-being in the workplace. 

It helps reduce stress, prevent burnout, and cultivates a positive culture. If you notice your employees are burnt out or there’s an increase in absenteeism, try implementing regular breaks, flexible work arrangements, clear expectations, paid time off (PTO), employee wellness packages, and limited overtime. 
A balanced employee is a happier, more engaged, and productive employee. With the help of employee well-being initiatives, you can leverage the benefits of employee engagement and productivity. Investing in well-being is not just good for them — good for business, too.

What is the Impact of Employee Engagement on Business Performance?

It’s no secret that highly engaged employees help move the needle in terms of business goals. Research conducted by Gallup showed that organizations with high employee engagement and satisfaction are more committed to producing higher-quality outputs. 

For instance, motivated employees help organizations improve customer and client relationships while improving organic growth, leading to a 10% difference in customer ratings and an 18% difference in sales.

How to Measure Employee Engagement

Employee engagement analytics are crucial for understanding how your employees feel in the workplace and learning how to improve employee engagement. 

Metrics help employers identify areas where engagement is excelling, is mediocre, and where it needs immediate interventions. 

Here are a few data collection methods to track the benefits of employee engagement programs:

• Quantitative data collection: This can include surveys and assessments to measure various aspects of engagement like job satisfaction, employee commitment, and alignment with company values.
  
• Benchmarking and trend analysis: With benchmarking, you can compare industry standards or historical data within your company. Analyzing trends reveals whether engagement is improving, declining, or stable. 
  
• Segment analysis: Analytics can be broken down into different segments within your organization: departments, teams, job roles, or demographics. This shows you which groups in your company have lower or higher engagement levels.
  
• Employee feedback: This type of feedback focuses on qualitative analytics from your employees. Sentiment analysis tools process open-ended responses and identify any concerns.
  
• Predictive analytics: You can use predictive analytics to forecast future engagement trends. This can include key business outcomes like productivity, turnover rates, and customer satisfaction.

How ContactMonkey Helps You With Your Employee Engagement Strategy

ContactMonkey’s internal communication tool allows you to create eye-catching, engaging communications that resonate with employees, send out easy pulse surveys to capture employee opinion, and track the way employees interact with your communications in order to drive continuous improvement. 

The benefits of employee engagement software from ContactMonkey begins with your communications. The drag-and-drop email builder allows you to create internal employee newsletters, notices, CEO updates, and more, all in minutes and all perfectly optimized for any device.  

Add in a pulse survey block to solicit direct employee feedback on engagement levels or satisfaction, choosing from emoji reactions, eNPS surveys, thumbs up/thumbs down surveys, and more. You can even enable anonymous commenting and get in-depth candid feedback that helps you understand where your engagement strategy is falling flat. 

And with internal email analytics, you can see exactly how your emails are landing on your in-depth campaign analytics page. With ContactMonkey, you’ll be able to see opens, link clicks, read times, and even get a full heat map that shows you where on the email your employees are clicking. 

With all this data at your fingertips, you’ll be able to see how tuned in your employees are, what they’re interested in, and how they interact with your newsletters, emails, and other communications. After all, understanding how engaged your employees are is the first step towards reaping the benefits of employee engagement.

Boost Employee Engagement and Take Your Business to the Next Level with ContactMonkey

Employee engagement is a powerful lever for driving business success. By investing in strategies to enhance engagement, you can achieve significant competitive advantages and create a high-performing organization. 

Consider implementing an employee engagement program tailored to your team’s unique needs and goals. And if you’re not sure how, an employee engagement tool like ContactMonkey lets you ask your team what those needs are. 

With ContactMonkey, your employee emails become an easy way to drive engagement, from helping you collect information through employee pulse surveys, to boosting employee recognition communications, to keeping employees informed about new initiatives and programs, and so much more.

Ready to take your company’s performance to the next level? Book a demo with our employee engagement experts today to learn our cutting-edge tools and strategies so you can reap the benefits of employee engagement.