Top Benefits of Employee Engagement

Having engaged employees can lead to great rewards. But what are your team members looking for—and how can you inspire and motivate them?

Engaged employees provide numerous benefits.

  • 81% Lower absenteeism
  • 43% Less turnover (in low turnover organizations)
  • 23% Higher profitability 
  • 18% Higher productivity
  • 10% Higher customer loyalty and engagement

But the vast majority of employees lack passion or motivation.

Only 35% of U.S. employees are engaged.

The key to engagement lies with managers.

70% of the variance in team engagement is determined solely by the manager.

3 things employees want from their managers:

1. Growth and development opportunities 

2. Recognition and appreciation 

3. Communication and feedback 

Have continual conversations about development and performance. 

3x Increase in engagement among employees who receive daily feedback from their manager versus those who receive feedback once a year or less

Recognition for good work doesn’t have to be monetary.

55% Improvement in engagement by addressing employees’ need for recognition through nonfinancial means

Inclusive organizations increase employee engagement.

Nearly ¾ of employees who feel very included say they are entirely engaged.

How to increase engagement? Rethink your work philosophies.

Instead of Paychecks > Think about Purpose

Instead of Satisfaction > Think about Development

Instead of Bosses > Think about Coaches

Instead of Annual Reviews > Think about Ongoing Conversations

Instead of Weaknesses > Think about Strengths

Instead of Job > Think about Life


Sources: Gallup, 2021, Springworks, 2021, McKinsey & Company, 2020

Images by PM Images/Getty Images