why is employee engagement important

Why is Employee Engagement Important?

The idea of employee engagement has attracted a lot of attention in today’s business environment. It explores the emotional commitment and connection that workers have with their work and their organization, going beyond the typical employer-employee relationship.

We shall get into the crucial query, “Why is employee engagement important?” in this post. In order to build a motivated, effective, and satisfied workforce, firms must understand the importance of employee engagement.

Why is employee engagement important: 19 Benefits

1. Lower Turnover

Unengaged workers are more inclined to seek employment elsewhere. Additionally, focusing on employee engagement can result in cost savings since it can cost between 50% and 100% of an employee’s annual compensation to replace them, not to mention the less noticeable effects on staff morale and productivity in significant cost savings for businesses.

2. Reduced Employee Stress

Employees who are less engaged are more likely to feel worried, and stress lowers engagement, creating a vicious cycle that can be challenging to escape.

The American Institute of Stress estimates that stress costs American firms $300 billion annually. Thus, reducing stress and increasing engagement result in advantages, shedding light on yet another justification for the importance of employee engagement.

3. Decreased Burnout

Burnout is a condition defined in part by a lack of motivation and an inability to connect with one’s work. Low engagement and unmanaged stress can cause burnout. A stunning 49% of employees reported at least some level of burnout in April 2021, according to McKinsey & Company. Enhancing employee engagement can assist in preventing employees from falling into that situation, from which it may be challenging to recover.

4. Increased Productivity

It should not be surprising that employees who enjoy their work put in more effort, and as a result, their employers gain. According to Gallup, engaged workers are 17% more productive, which has a significant impact on the organization’s profitability and longevity.

5. Greater Employee Commitment

Engaged staff members create more work and are generally more committed to the company’s future. This suggests that they are more likely to put time and effort into activities that have a big impact yet are challenging to evaluate. These can involve hiring new workers and creating more effective procedures.

6. Better Customer Service

Employees who are more engaged are more in line with the mission and objectives of the organization, which makes customer interactions more consistent.

Customers will likely notice their favorable sentiments concerning the business as well. Better customer experiences and increased customer loyalty are directly correlated with engagement.

7. Improved Collaboration

When workers feel a connection to their company and their teammates, they are more likely to form a sense of camaraderie and collaborate well with their coworkers. This in turn promotes peer participation, beginning a positive feedback cycle.

8. Lower Absenteeism

The ability of a corporation to carry out its objective can be severely hampered by absenteeism. Companies with strong employee engagement have 81% fewer absenteeism than those with low engagement, according to Gallup. This distinction clearly affects productivity and results.

9. Safer Workplaces

Since engaged employees tend to pay closer attention to their work and feel more empowered to voice concerns, they are less likely to take risks that can result in injury, which is why companies in the top quartile for engagement have a staggering 70% fewer accidents than companies in the bottom quartile. Accidents at work can have terrible results and put organizations at great financial and reputational risk.

10. Fewer Mistakes

Employees who are disengaged are also more likely to commit costly errors at work. If your employees don’t feel a feeling of dedication to the organization, they won’t be as driven to go above and beyond to ensure that their work is excellent and their roles.

11. Increased Sales

Sales are directly increased by 20% when staff are more engaged because they are more productive and more likely to develop lasting relationships with customers. That sum has the power to build or break a business.

12. Higher Revenue

Increased revenue results naturally from increased sales and productivity as well as lower costs due to personnel churn and blunders. According to research by Gallup, businesses with high employee engagement make 21% more money than their less engaged rivals.

13. Better Employee Health

Disengaged employees are more prone to have poor physical and mental health, which can further reduce productivity and raise costs for the company. On the other side, workers who are happy with their occupations are more likely to feel better and have the stamina to engage in wellness-promoting activities like exercise.

14. Higher Stock Prices

High employee engagement benefits for productivity and morale can benefit shareholders. According to Gallup, among publicly traded companies, those with the highest involvement had earnings per share that are 147% more than those of their less involved rivals

15. More Effective Leadership

The level of employee engagement is frequently influenced at the top. According to Gallup, employee opinions of their bosses might actually explain up to 70% of engagement differences. As a result, managers who are highly engaged can have a significant beneficial impact on the organization’s success.

16. Stronger Recruiting Platform

Customers love highly engaged staff, but they’re also a potent recruiting resource. Additionally, job seekers are more likely to form a favorable opinion of a potential employer when they perceive high levels of engagement.

Companies that prioritize employee health and happiness at work are likely to see favorable results across the board given the various advantages of employee engagement.

17. Makes Employees Loyal

Employee engagement activities can lead to loyalty, as employees feel emotionally invested in their work. However, loyalty is not solely influenced by engagement. Other factors include making employees feel appreciated, resisting micromanaging, and giving them the authority to make decisions independently.

18. Builds morale

High morale encourages employee loyalty by displaying commitment to their work and the company’s mission. Companies can increase morale by rewarding workers, soliciting their feedback, offering pertinent information, providing training, and providing a clear career path. Building employee morale and luring talent need being the employer that stands out.

19. Leads to Mutual Respect

Trust and employee engagement are critically dependent on respect. Respect is earned by managers that respect their people and give them the freedom to execute their jobs without interfering.

Employees should feel free to ask inquiries without being made to feel awkward. Frontline and remote employees deserve special consideration from employers who should have faith in their ability to accomplish assignments on schedule and take breaks as needed.


Employee engagement is a fundamental aspect that can have a big impact on an organization’s performance and growth, therefore it’s not just a trendy term. Motivated, creative, and committed people are more likely to be present at work.

They support a supportive work environment, which eventually results in increased output, more job satisfaction, and lower turnover rates. Every organization aiming for long-term success and prosperity should make understanding the value of employee engagement and actively striving to cultivate it a priority.

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