Why Employee Engagement Matters

By Nonnie Egbuna

The term “employee engagement” may have slightly different definitions, depending on who you ask. We define it as the level of emotional investment and psychological buy-in that an employee has towards their company. Maintaining employee engagement has always been a major pain point among people leaders, and doing so in a virtual or semi-virtual environment is significantly more difficult.

But prioritizing employee satisfaction and commitment will always be worthwhile. Here’s why:


Engaged teams are more profitable.

A study conducted by Gallup found that highly engaged teams — where employees are seen as “stakeholders of their own future and the company’s future” – produce profits up to 21% higher than those of less engaged teams. 


Engaged employees stick around.

The same Gallup study uncovered a 41% decline in absenteeism and a 59% decline in turnover in companies with high levels of employee engagement. This is not only crucial in helping you retain the best talent; it is also important for your bottom line, as onboarding new hires can cost approximately $5,000.


Engaged employees attract new talent.

It’s simple — when employees feel involved and supported in the workplace, they are more likely to want to spread the joy. 89% of workers at companies with effective employee engagement initiatives are more likely to recommend their company as a good place to work.


Besides being good for business, high employee engagement is inextricably linked to inclusive culture. Employees who are committed to their own success and to the success of their company are more likely to help foster an environment where everyone can thrive. It’s a win-win!





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