{"id":13058,"date":"2024-08-06T11:42:17","date_gmt":"2024-08-06T15:42:17","guid":{"rendered":"https:\/\/thediversitymovement.com\/?p=13058"},"modified":"2024-08-13T15:30:12","modified_gmt":"2024-08-13T19:30:12","slug":"why-does-employee-engagement-matter-people-productivity-profits","status":"publish","type":"post","link":"https:\/\/thediversitymovement.com\/why-does-employee-engagement-matter-people-productivity-profits\/","title":{"rendered":"Why does Employee Engagement Matter? People, Productivity, and Profits"},"content":{"rendered":"<p><button id=\"listenButton1\" class=\"responsivevoice-button\" type=\"button\" value=\"Play\" title=\"ResponsiveVoice Tap to Start\/Stop Speech\"><span>&#128266; Listen to this article<\/span><\/button>\n        <script>\n            listenButton1.onclick = function(){\n                if(responsiveVoice.isPlaying()){\n                    responsiveVoice.cancel();\n                }else{\n                    responsiveVoice.speak(\"In the modern workplace, employee engagement is the difference between an average year and an outstanding one. Among similar companies, those with motivated, enthusiastic workers simply perform better. For too long, leaders failed to connect the feelings and attitudes of individual workers, the quality of their work, and the organization\u2019s success. Today, future-focused organizations understand that employee engagement is inextricably linked to a healthier bottom line.\u00a0 This shift in corporate attitudes is gaining ground. As Deloitte researchers state in the 2024 Global Human Capital Trends report, \u201cWorkers and leaders aren\u2019t looking to make work more human at the expense of business outcomes and priorities, but as a path toward improving business outcomes and priorities.\u201d\u00a0 Considering the powerful correlation between worker morale and professional performance, it\u2019s no wonder that senior executives rank employee engagement among their top global business strategies. Higher Employee Engagement Leads to Higher Profits According to Gallup, organizations with highly engaged employees are 23% more profitable than those with low morale. In one year, beverage giant Molson Coors saved more than $1.7 million in safety costs by strengthening employee engagement. Efforts to address morale at a start-up facility enabled Caterpillar to realize a $2 million increase in profits and a 34% higher customer satisfaction rate.\u00a0 In another study, Microsoft researchers reported a correlation between higher employee engagement and better stock performance. According to the tech giant\u2019s Work Trend Index Special Report, the stock of companies with high employee engagement performed 200% better than companies with low engagement. The study analyzed more than 3 million workers at 226 global companies that trade on U.S. stock exchanges.\u00a0 Employee Engagement Explained It\u2019s helpful to define employee engagement to understand why it is such a powerful driver of organizational success. More than job satisfaction, employee engagement is the mental and emotional connection that individuals feel toward their job, their team, and their workplace. Engaged employees are not just working for a paycheck. They are genuinely interested in their work, committed to the success of their colleagues, and motivated to help the organization succeed. Actively engaged employees take pride in their work, strive for excellence, and inspire their team to deliver high-quality outcomes. Each achievement leads to another, translating to greater individual career success and job satisfaction.\u00a0 Unengaged employees, by contrast, might be neutral in their attitude about work. They might not feel any particular connection to the organization or passion for their work, yet they appreciate a steady paycheck and benefits. Unengaged workers complete their assigned tasks, but aren\u2019t particularly interested in stretch assignments or putting in extra effort. They might be described as \u201cquiet quitting,\u201d not looking for another job but doing only the bare minimum to keep their current one.\u00a0 Actively disengaged employees are unhappy at work and demonstrate their feelings through negative behavior. They might complain, gossip about their colleagues, perform substandard work, or fail to accomplish tasks at all. They don\u2019t expect to work for the organization much longer and are likely looking for another job. Actively disengaged employees are particularly toxic in workplaces, and not just because other employees wind up redoing shoddy work. Negative attitudes toward the company and leadership can spread throughout a team, straining professional relationships and workplace morale.\u00a0\u00a0 In its most recent survey, Gallup found that only a third of U.S. workers were engaged, roughly half of employees were not engaged, and 16% were actively disengaged. However, at organizations that prioritized people-first strategies to increase employee engagement, 70% of employees were engaged. These high-engagement companies reported 14% higher productivity than those with low engagement. How Does Employee Engagement Affect Productivity? Considering the description of engaged employees, it\u2019s not surprising that job performance improves in lockstep with morale. Engaged workers care about their work and will go above and beyond their job description when necessary, leading directly to higher productivity. However, it\u2019s worth exploring the various ways that highly engaged employees perform better themselves and bring out the best in their colleagues. 1. Employee engagement and innovation Engaged employees feel a sense of ownership of their work, making them care about the quality and success of everything they touch. Knowing that their contributions are valued and respected, they feel empowered to test new ideas and suggest different strategies. This creative spirit drives innovation, resulting in better products, processes, and services that improve productivity and client satisfaction. In addition, their willingness to embrace change, enables engaged employees to be more agile and resilient in the face of change and volatility.\u00a0 2. Employee engagement and collaboration Highly engaged workers align their personal goals with organizational objectives and work in concert with their team to accomplish them. This focus on group achievement promotes the sharing of knowledge and the free-flowing exchange of new ideas and different perspectives, leading to better problem-solving and excellent outcomes. Strong communication and mutual support results in better teamwork, greater efficiency, and stronger professional relationships. 3. Employee engagement and customer satisfaction Going above and beyond extends to the customer service that engaged employees provide. They understand the importance of caring for customers and meeting their needs. Receiving a personalized experience results in higher customer satisfaction and greater loyalty. Gallup has quantified these outcomes, reporting that companies with highly engaged employees have 10% greater customer loyalty and 17% higher sales.\u00a0 4. Employee engagement, retention, and absenteeism Lower absentee and turnover rates are also associated with higher workplace morale. Employees who feel connected to their work and their employer are roughly 50% more likely to remain with the company, reducing turnover costs and the disruptions associated with replacing personnel. Engaged workers are also 78% less likely to call in sick, contributing to higher productivity. 5. Employee engagement and well-being Finally, no conversation about engagement is complete without considering employee well-being, because people can\u2019t do their best work unless they are mentally and physically healthy. When employees feel cared for and supported by their leaders and managers, they reciprocate with greater enthusiasm and dedication to their work. It\u2019s no wonder that organizations with high employee engagement also invest in people-first programs like mental health support, professional development, work-life balance initiatives, and wellness activities. \u201cAdvancing mental health and psychosocial safety at work may call for a significant organizational change in a company\u2019s culture, including a shift in leadership mindset,\u201d says WPO President and CEO Alan King. \u201cOn their own, employees can only do so much to move the needle if not actively empowered by the employer.\u201d Senior executives have the power to shape workplaces where individuals flourish. And, considering the clear bottom-line advantages, they have a responsibility to improve organizational outcomes by increasing employee engagement. To create \u201cwin-win\u201d solutions to business challenges, organizational leaders must prioritize human-centric strategies and inclusive actions that generate feelings of well-being, boost employee engagement, and result in greater productivity and economic growth. To increase employee engagement, leaders must adopt a holistic approach to employee well-being and empower individuals to be their authentic selves. The Employee Engagement Growth Model is a framework that enables organizations and leaders to boost the effectiveness of teams while inspiring enthusiastic, motivated, and committed employees to do their best work. Contact us today to learn more. Amber Keister is a Content Strategist at The Diversity Movement. She has spent more than 20 years as a journalist for publications throughout the South. Connect with her on Linkedin.\", \"US English Male\");\n                }\n            };\n        <\/script>\n    <\/br><br \/>\n<span style=\"font-weight: 400;\">In the modern workplace, employee engagement is the difference between an average year and an outstanding one. Among similar companies, those with motivated, enthusiastic workers simply perform better. For too long, leaders failed to connect the feelings and attitudes of individual workers, the quality of their work, and the organization\u2019s success. Today, future-focused organizations understand that employee engagement is inextricably linked to a healthier bottom line.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This shift in corporate attitudes is gaining ground. As Deloitte researchers state in the<\/span><a href=\"https:\/\/www2.deloitte.com\/us\/en\/insights\/focus\/human-capital-trends\/2024\/human-performance-new-ways-of-working.html\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">2024 Global Human Capital Trends<\/span><\/a><span style=\"font-weight: 400;\"> report, \u201cWorkers and leaders aren\u2019t looking to make work more human at the expense of business outcomes and priorities, but as a path toward improving business outcomes and priorities.\u201d\u00a0 Considering the powerful correlation between worker morale and professional performance, it\u2019s no wonder that senior executives rank<\/span><a href=\"https:\/\/www.gallup.com\/workplace\/285674\/improve-employee-engagement-workplace.aspx\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">employee engagement<\/span><\/a><span style=\"font-weight: 400;\"> among their top global<\/span><a href=\"https:\/\/www.shrm.org\/topics-tools\/tools\/toolkits\/developing-sustaining-employee-engagement\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">business strategies<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2>Higher Employee Engagement Leads to Higher Profits<\/h2>\n<p><span style=\"font-weight: 400;\">According to <\/span><a href=\"https:\/\/www.gallup.com\/workplace\/285674\/improve-employee-engagement-workplace.aspx\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Gallup<\/span><\/a><span style=\"font-weight: 400;\">, organizations with highly engaged employees are 23% more profitable than those with low morale. In one year, beverage giant Molson Coors saved more than $1.7 million in safety costs by <\/span><a href=\"https:\/\/www.shrm.org\/topics-tools\/tools\/toolkits\/developing-sustaining-employee-engagement\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">strengthening employee engagement<\/span><\/a><span style=\"font-weight: 400;\">. Efforts to address morale at a start-up facility enabled Caterpillar to realize a $2 million increase in profits and a 34% higher customer satisfaction rate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In another study, Microsoft researchers reported a correlation between higher employee engagement and better stock performance. According to the tech giant\u2019s <\/span><a href=\"https:\/\/www.microsoft.com\/en-us\/worklab\/work-trend-index\/the-new-performance-equation-in-the-age-of-ai\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Work Trend Index Special Report<\/span><\/a><span style=\"font-weight: 400;\">, the stock of companies with high employee engagement performed 200% better than companies with low engagement. The study analyzed more than 3 million workers at 226 global companies that trade on U.S. stock exchanges.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-13060 size-large lazyload\" data-src=\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1786157300-1024x540.jpg\" alt=\"Laptop, success or happy employees fist bump in celebration of sales goals or target at office desk. Support, mission or woman celebrates partnership growth, team work or achievement with worker\" width=\"1024\" height=\"540\" data-srcset=\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1786157300-1024x540.jpg 1024w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1786157300-300x158.jpg 300w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1786157300-768x405.jpg 768w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1786157300-1536x810.jpg 1536w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1786157300-2048x1080.jpg 2048w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1786157300-600x316.jpg 600w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/540;\" \/><\/p>\n<h2>Employee Engagement Explained<\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s helpful to define employee engagement to understand why it is such a powerful driver of organizational success. More than job satisfaction, employee engagement is the mental and emotional connection that individuals feel toward their job, their team, and their workplace. Engaged employees are not just working for a paycheck. They are genuinely interested in their work, committed to the success of their colleagues, and motivated to help the organization succeed. Actively engaged employees take pride in their work, strive for excellence, and inspire their team to deliver high-quality outcomes. Each achievement leads to another, translating to greater individual career success and job satisfaction.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unengaged employees, by contrast, might be neutral in their attitude about work. They might not feel any particular connection to the organization or passion for their work, yet they appreciate a steady paycheck and benefits. Unengaged workers complete their assigned tasks, but aren\u2019t particularly interested in stretch assignments or putting in extra effort. They might be described as \u201cquiet quitting,\u201d not looking for another job but doing only the bare minimum to keep their current one.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Actively disengaged employees are unhappy at work and demonstrate their feelings through negative behavior. They might complain, gossip about their colleagues, perform substandard work, or fail to accomplish tasks at all. They don\u2019t expect to work for the organization much longer and are likely looking for another job. Actively disengaged employees are particularly toxic in workplaces, and not just because other employees wind up redoing shoddy work. Negative attitudes toward the company and leadership can spread throughout a team, straining professional relationships and workplace morale.\u00a0\u00a0<\/span><\/p>\n<p><strong>In its most recent survey, Gallup found that <a href=\"https:\/\/www.gallup.com\/394373\/indicator-employee-engagement.aspx\" target=\"_blank\" rel=\"noopener\">only a third of U.S. workers<\/a><\/strong><span style=\"font-weight: 400;\"><strong> were engaged, roughly half of employees were not engaged, and 16% were actively disengaged.<\/strong> <strong>However, at organizations that prioritized people-first strategies to increase employee engagement, 70% of employees were engaged. These high-engagement companies reported 14% higher productivity than those with low engagement.<\/strong><\/span><\/p>\n<h2>How Does Employee Engagement Affect Productivity?<\/h2>\n<p><span style=\"font-weight: 400;\">Considering the description of engaged employees, it\u2019s not surprising that job performance improves in lockstep with morale. Engaged workers care about their work and will go above and beyond their job description when necessary, leading directly to higher productivity. However, it\u2019s worth exploring the various ways that highly engaged employees perform better themselves and bring out the best in their colleagues.<\/span><b><\/b><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-13061 size-large lazyload\" data-src=\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1336273804-1024x683.jpg\" alt=\"High angle view of a diverse group of architects, young African American man and his female colleague of Mongolian ethnicity working together as a team in their office, drawing some schematics and exchanging ideas\" width=\"1024\" height=\"683\" data-srcset=\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1336273804-1024x683.jpg 1024w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1336273804-300x200.jpg 300w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1336273804-768x512.jpg 768w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1336273804-1536x1024.jpg 1536w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1336273804-2048x1366.jpg 2048w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/iStock-1336273804-600x400.jpg 600w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/683;\" \/><\/p>\n<h3>1. Employee engagement and innovation<\/h3>\n<p><span style=\"font-weight: 400;\">Engaged employees feel a sense of ownership of their work, making them care about the quality and success of everything they touch. Knowing that their contributions are valued and respected, they feel empowered to test new ideas and suggest different strategies. This creative spirit drives innovation, resulting in better products, processes, and services that improve productivity and client satisfaction. In addition, their willingness to embrace change, enables engaged employees to be more agile and resilient in the face of change and volatility.\u00a0<\/span><\/p>\n<h3>2. Employee engagement and collaboration<\/h3>\n<p><span style=\"font-weight: 400;\">Highly engaged workers align their personal goals with organizational objectives and work in concert with their team to accomplish them. This focus on group achievement promotes the sharing of knowledge and the free-flowing exchange of new ideas and different perspectives, leading to better problem-solving and excellent outcomes. Strong communication and mutual support results in better teamwork, greater efficiency, and stronger professional relationships.<\/span><\/p>\n<h3>3. Employee engagement and customer satisfaction<\/h3>\n<p><span style=\"font-weight: 400;\">Going above and beyond extends to the customer service that engaged employees provide. They understand the importance of caring for customers and meeting their needs. Receiving a personalized experience results in higher customer satisfaction and greater loyalty. <\/span><a href=\"https:\/\/www.gallup.com\/workplace\/285674\/improve-employee-engagement-workplace.aspx\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Gallup<\/span><\/a><span style=\"font-weight: 400;\"> has quantified these outcomes, reporting that companies with highly engaged employees have 10% greater customer loyalty and 17% higher sales.\u00a0<\/span><\/p>\n<h3>4. Employee engagement, retention, and absenteeism<\/h3>\n<p><span style=\"font-weight: 400;\">Lower absentee and turnover rates are also associated with higher workplace morale. Employees who feel connected to their work and their employer are roughly <\/span><a href=\"https:\/\/www.gallup.com\/workplace\/285674\/improve-employee-engagement-workplace.aspx\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">50% more<\/span><\/a><span style=\"font-weight: 400;\"> likely to remain with the company, reducing turnover costs and the disruptions associated with replacing personnel. Engaged workers are also 78% less likely to call in sick, contributing to higher productivity.<\/span><\/p>\n<h3>5. Employee engagement and well-being<\/h3>\n<p>Finally, no conversation about engagement is complete without considering employee well-being, because people can\u2019t do their best work unless they are mentally and physically healthy. When employees feel cared for and supported by their leaders and managers, they reciprocate with greater enthusiasm and dedication to their work. It\u2019s no wonder that organizations with high employee engagement also invest in people-first programs like mental health support, professional development, work-life balance initiatives, and wellness activities.<\/p>\n<figure id=\"attachment_13062\" aria-describedby=\"caption-attachment-13062\" style=\"width: 300px\" class=\"wp-caption alignleft\"><img decoding=\"async\" class=\"wp-image-13062 size-medium lazyload\" data-src=\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/New_Alan_Headshot-300x200.jpg\" alt=\"Headshot of Alan King\" width=\"300\" height=\"200\" data-srcset=\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/New_Alan_Headshot-300x200.jpg 300w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/New_Alan_Headshot-1024x683.jpg 1024w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/New_Alan_Headshot-768x512.jpg 768w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/New_Alan_Headshot-1536x1024.jpg 1536w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/New_Alan_Headshot-2048x1365.jpg 2048w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2024\/08\/New_Alan_Headshot-600x400.jpg 600w\" data-sizes=\"(max-width: 300px) 100vw, 300px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 300px; --smush-placeholder-aspect-ratio: 300\/200;\" \/><figcaption id=\"caption-attachment-13062\" class=\"wp-caption-text\">Alan King<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">\u201cAdvancing mental health and psychosocial safety at work may call for a significant organizational change in a company\u2019s culture, including a shift in leadership mindset,\u201d says WPO President and CEO Alan King. \u201cOn their own, employees can only do so much to move the needle if not actively empowered by the employer.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Senior executives have the power to shape workplaces where individuals flourish. And, considering the clear bottom-line advantages, they have a responsibility to improve organizational outcomes by increasing employee engagement. To create \u201cwin-win\u201d solutions to business challenges, organizational leaders must prioritize human-centric strategies and inclusive actions that generate feelings of well-being, boost employee engagement, and result in greater productivity and economic growth.<\/span><\/p>\n<p><strong>To increase employee engagement, leaders must adopt a holistic approach to employee well-being and empower individuals to be their authentic selves. <a href=\"https:\/\/landing.thediversitymovement.com\/employee-engagement-workshop\/\" target=\"_blank\" rel=\"noopener\">The Employee Engagement Growth Model<\/a> is a framework that enables organizations and leaders to boost the effectiveness of teams while inspiring enthusiastic, motivated, and committed employees to do their best work. <a href=\"https:\/\/thediversitymovement.com\/contact\">Contact us today<\/a> to learn more.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><em><a href=\"https:\/\/thediversitymovement.com\/team\/amber-keister\/\"><b>Amber Keister<\/b><\/a> <span style=\"font-weight: 400;\">is a Content Strategist at The Diversity Movement. She has spent more than 20 years as a journalist for publications throughout the South. Connect with her on <\/span><a href=\"https:\/\/www.linkedin.com\/in\/amberkeister\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Linkedin<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the modern workplace, employee engagement is the difference between an average year and an outstanding one. Among similar companies, those with motivated, enthusiastic workers simply perform better. For too15<\/p>\n","protected":false},"author":13,"featured_media":13060,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60],"tags":[],"tdm_type":[92],"class_list":["post-13058","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employee-experience-organizational-culture","tdm_type-articles"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why does Employee Engagement Matter?<\/title>\n<meta name=\"description\" content=\"Employee engagement matters because it leads to higher profits and productivity. 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