10 benefits of engaged employees within an organisation

By Indeed Editorial Team

Updated 15 November 2022

Published 2 May 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Prioritising employee engagement is a common strategy that businesses use to improve retention rates and boost productivity. Employee engagement means business leaders and managers actively work towards increasing the happiness and involvement levels of their staff. Knowing how to effectively engage employees can improve work-related outcomes for both you and your team members. In this article, we explore the various benefits of engaged employees and why promoting employee engagement is essential to the long-term success of your businesses.

What is employee engagement?

To understand the benefits of engaged employees, let's first look at what employee engagement means. To engage employees is to improve their working conditions and incentivise and promote active involvement. One strategy for achieving employee engagement is to align the ideals of your team with those of the wider organisation.

Some companies encourage employees to act naturally and be themselves so they can use their individual strengths. Engaging employees in such a way can positively affect their well-being, which positively impacts productivity, performance and retention. Here are a few ways to promote employee engagement:

  • Delegate additional responsibilities to enable employees to take on new challenges and evolve in their careers.

  • Offer rewards to employees whose contributions directly impact the company in a positive way.

  • Foster a sense of community amongst your team members and regularly hold events that boost morale.

Benefits of engaged employees

Here are some of the benefits of engaged employees that you can expect to see if you decide to change the way you interact with your staff:

1. Improved productivity

Improved engagement typically means increased commitment, focus and a desire to impress leaders, meaning that when engagement levels rise, productivity follows. This investment of time and effort on the part of the employee, accompanied by positive feedback, can give them a sense of pride to work for the business. Employees who put the entirety of their effort into their role are much more likely to feel that they are contributing to the entire organisation. You can further engage people by challenging more senior, qualified professionals and encouraging those who are less engaged to participate more.

Related: 20 fun team meeting ideas to boost engagement and productivity

2. Increased customer satisfaction

Engaging employees can help them have more positive interactions and involvement with clients and customers. If your employees' engagement is visible to customers, the level of passion and commitment on display may impress them, affecting their perception of your business and brand. Increasing customer satisfaction leaders to customer retention, and ultimately, more profit.

3. Increased employee retention

Showing support to your staff and demonstrating a commitment to their personal and professional development can make them more likely to remain with the company long-term. Employee retention is a primary area of concern for employers, because if a high performing staff member leaves, others may follow suit. Working to increase engagement ensures employees remain happy, focused, motivated and more likely to stay with the business.

Related: How to have an effective staff meeting (with tips)

4. Enhanced company culture

By making employee engagement a deliberate part of your company culture, you are showing that employee well-being is one of your core values. Employees often respond positively to this, particularly if leaders frequently ask for feedback regarding work-life balance. Happy employees often model good behaviour, which promotes a productive work culture.

Related: What are intrinsic rewards and how to use them at work?

5. Contribution to innovation

Engaging employees, and making them feel more involved, also allows them to think more creatively to solve problems. Innovation keeps companies competitive, so consistent engagement can help you keep your advantages in the marketplace.

6. Better employee relations

When leaders create engagement procedures that manage talent and promote open communication, team members may be more likely to view them more favourably. This trust in management can lead to a healthy work environment, and communication can help you identify factors that contribute to employee disengagement. Here are examples of strategies to improve employee relations:

  • Team building: You can organise activities that bring workers together.

  • Career development: You may propose career advancement options to help employees reach their own professional goals.

  • Conflict management: Design procedures that can help resolve issues between two employees or between an employee and manager.

  • Employee appreciation: Make a habit of acknowledging and rewarding the good efforts of your employees, such as through a salary bonus or gift card.

  • Workplace safety: It's advisable to take measures to guarantee that the workplace is emotionally and physically safe for employees.

7. Healthier employees

To improve employees engagement, it's important to consider their emotional and physical health. You can do so by providing ways for them to stay healthy and feel happier while at work. To foster emotional wellness, you can include plants and natural lighting in the workplace, as this can help people feel energised. Demonstrating your availability to listen and support team members when they are experiencing stress can also improve emotional well-being at work.

You can support the physical well-being of your employees by offering doctor visits in the office, onsite vaccinations, paid sick leave and health insurance. To encourage physical exercise, you can create and sponsor an employee sports team or create fitness challenges employees can complete and track in an app. Workplaces with on-site gyms may consider offering flexible time during the workday for employees to use the facilities. If your workplace has an onsite cafeteria, choosing healthy food vendors can help employees stay both physically fit and mentally engaged with their work.

Related: What is management and how can managers excel at work?

8. Happier personal lives

Providing a work-life balance gives employees more peace of mind and helps reduce their stress levels. Happy employees bring fewer work-related concerns home at the end of the day, so they are more likely to have better quality time with their family and friends. This helps them be more productive when they come back to work.

9. Positive public reputation

As a leader, you have the opportunity to provide flexibility, professional development and equality in a respectful environment. All these efforts are part of a long-term investment that contributes to better results in the workplace, but they can also impact how outsiders view your organisation. If others know that your company achieves positive results because it treats its employees well, this can help you secure new clients and achieve respect in your community.

Related: 8 strategies to help you lead by example in the workplace

10. Attracting valuable talents

Engaging employees involves respecting employees, creating comfortable environments and encouraging diversity. Such an environment can attract the additional talent you want to recruit for your team. If people start to recognise your company as an exciting and engaging place to work, you may start to receive enquiries from people pursuing a job opening with you.

Tips for communicating with disengaged employees

If you have disengaged employees, you may wonder how to approach them. Here are some tips to help you communicate with disengaged employees:

Identify the cause of their disengagement

The first thing to do when employees show signs of disengagement is to speak to them and find out the cause. Simply entering into a dialogue with the disengaged person may re-engage them slightly, as some people don't voice their grievances on their own unless they're asked. Once you understand the problem, you can discuss possible solutions with the employee and work towards getting the person re-engaged.

Create a development plan

Following on from your initial meeting with the disengaged employee, it's important to then create a development plan. This helps to re-engage your employee and encourages their personal and professional growth. Having a development plan in place with various goals also allows you to measure the employees' progress. A development plan may include short, mid and long-term goals and a time frame to work within. If the employee doesn't make sufficient progress, you can then implement further corrective action.

Hold them accountable

To make a development plan effective, it's imperative that you hold your employee accountable if they don't meet their targets. Without accountability, there are no consequences to failure, making it a more common occurrence. With accountability, you can empower your employees and encourage them to do better work. If they understand they are responsible for the success or failure of something and they are to be held personally accountable, they are much more likely to apply their full effort.

Take disciplinary action

It's best to reserve this for last-resort scenarios, as positive reinforcement is more effective than punishment when attempting to engage employees. If you are struggling with a particularly stubborn employee who refuses to engage, it may be necessary to take them through your usual disciplinary procedures. A verbal warning can suffice most times, but it's important to have counter-measures ready if employees don't respond to your engagement initiatives.


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