Why Is Employee Engagement Important?

 

 

(Jouany & Makipaa, 2023)

 

Employee engagement is an HRM concept that describes the level of enthusiasm and commitment an employee has toward their job (Smith, 2022). Employee engagement can also be described as the relationship between an organization and its employees. High levels of employee engagement indicate strong relationships between the organization and its employees, whereas low levels of employee engagement indicate poor relationships between the organization and its employees (Postelnyak, 2023). Regardless, employee engagement is critical to a company's success, given its link to employee job satisfaction and morale (Smith, 2022).  

Engaged employees care about their jobs and the performance of the organization and believe that their efforts can make a difference. They are in it for more than just the paycheck and may consider their well-being linked to their performance at work. Engaged employees are also likely to be highly productive and higher performing and often display a greater commitment to an organization's values and goals (Smith, 2022).

                                 

(Qualtrics.xm, 2023)

 

There are many benefits to employee engagement that makes it an important component of HRM. These include:

 

Improves Employee Loyalty

Employee engagement and loyalty are closely related. When employees are highly engaged in their work, they are emotionally invested. This then naturally helps to foster loyalty to the organization in an employee. Other ways to improve loyalty in employees include making them feel appreciated, resisting the urge to micromanage them, and giving them the authority to make some decisions independently (Herman, 2022).

 

Reduces Employee Turnover

Engaged employees are highly satisfied in their jobs and rarely look for other job opportunities. As such, organizations with an engaged workforce can achieve up to 59% lower employee turnover, depending on the overall turnover rate of the organization (Herman, 2022). According to Lee et al. (2017), Longo & Mura (2011), and Bhattacharya (2015), employees will stay in an organization if they are satisfied with their job.

 

Enhances Productivity

Higher productivity and efficiency are some of the main benefits of an engaged workforce. Engaged employees often believe strongly in the organization's vision and mission. This attitude makes them work harder and proactively to reach their goals, which in turn leads to increased productivity (Herman, 2022). According to De Simone et al. (2018), when employees are satisfied with the organization, they will do their best, and this will increase the performance of the organization as a whole.

 

Increases Customer Satisfaction

Employee engagement will improve not only employee satisfaction but also customer satisfaction. Engaged employees are more aligned with the organization's vision and mission, meaning their interactions with the customers are more on-brand. This improves customer satisfaction and also customer loyalty over time (Emeritus, 2022).

 

Improves Employee Health

Disengaged employees are likely to suffer from negative physical and mental health, which can affect their productivity and efficiency. Engaged employees, on the other hand, are more likely to experience increased well-being and energy for wellness-promoting activities like exercise (Emeritus, 2022).

 

Contributes to a Happier Home Life

According to the results of a Kansas State University study (2009), engaged employees are more satisfied and happier with their home life. Researchers looked into how positive work experiences affect family life and found out that engaged employees have better moods and report a more fulfilling family life (Herman, 2022).

 

Conclusion

Due to its importance, employee engagement is attracting a huge deal of attention from employers across industries. Many employers are finding new and innovative ways to engage employees and improve morale and productivity. Ultimately, engaged employees are a powerful tool to increase performance and revenues and position the company for many years of success.

 

References

Bhattacharya, Y., 2015. Employee engagement as a predictor of seafarer retention: A study among Indian officers. The Asian Journal of Shipping & Logistics, pp. 295-318.

De Simone, S., Planta, A. & Cicotto, G., 2018. The role of job satisfaction, work engagement self-efficacy and agentic capacities on nurses' turnover intention and patient satisfaction. Applied nursing research, pp. 130-140.

Emeritus, 2022. Why employee engagement is important in today's workplace: 16 benefits. [Online]
Available at: https://emeritus.org/blog/why-employee-engagement-is-important-benefits/#:~:text=Employees%20who%20are%20disengaged%20with,and%20increase%20an%20organization's%20costs.
[Accessed 26 April 2023].

Herman, M., 2022. Why is employee engagement so important? Top 20 benefits. [Online]
Available at: https://www.lumapps.com/employee-engagement/benefits-of-employee-engagement/#:~:text=Employee%20engagement%20refers%20to%20an,as%20well%20as%20customer%20loyalty.
[Accessed 26 April 2023].

Jouany, V. & Makipaa, M., 2023. 8 employee engagement statistics you need to know in 2023 (infographic). [Online]
Available at: https://haiilo.com/blog/employee-engagement-8-statistics-you-need-to-know/
[Accessed 26 April 2023].

Kansas State University, 2009. Employees who are engaged in their work have a happier home life. s.l.:s.n.

Lee, T. W., Hom, P., Eberly, M. & Li, J., 2017. Managing employee retention and turnover with 21st-century ideas. Organizational dynamics.

Longo, M. & Mura, M., 2011. The effect of intellectual capital on employees' satisfaction and retention. Information & management, pp. 278-287.

Postelnyak, M., 2023. Why is employee engagement important for your company? [Online]
Available at: https://www.contactmonkey.com/blog/why-is-employee-engagement-important#:~:text=Through%20in%2Ddepth%20analytics%2C%20ContactMonkey,of%20employees%20are%20actively%20engaged.
[Accessed 26 April 2023].

Qualtrics.xm, 2023. Employee engagement at work: Definition, and examples. [Online]
Available at: https://www.qualtrics.com/experience-management/employee/employee-engagement/
[Accessed 26 April 2023].

Smith, T., 2022. What is employee engagement? Definition, strategies, and examples. [Online]
Available at: https://www.investopedia.com/terms/e/employee-engagement.asp#:~:text=Employee%20engagement%20describes%20the%20level,be%20productive%20and%20higher%20performing.
[Accessed 26 April 2023].