HR teams and company leadership face many challenges, but one in particular rises above the rest. Across all industries, employee engagement levels are strikingly low. But why is employee engagement more critical than the serious challenges businesses face, like return-to-work mandates? The answer is simple: Strong employee engagement can help solve recruitment and retention problems, along with other management challenges.
A Gallup poll covering the entire work year 2023 found shockingly low engagement levels. In the middle of the year, only 34% of US employees felt engaged in their work and workplace. Once the results were in for all of 2023, the number was slightly lower at 33%.
As these numbers show, employee engagement is a serious issue in the current workforce landscape. When you consider engagement’s impact on retention and recruitment, you’ll see why now is the time to improve engagement levels.
Understanding Employee Engagement
Employee engagement is the level at which employees feel committed to their jobs, employers, and workplace. Engaged employees are excited about their jobs, and this enthusiasm manifests in a willingness to go above and beyond the minimum requirements. They want their co-workers and the company as a whole to succeed.
It’s important to note this is not the same as employee satisfaction. Employees can be satisfied with their jobs without feeling engaged. The classic example is an employee who sticks with a job solely for the salary and benefits. These two important factors may cause them to report job satisfaction, but they’re not necessarily engaged. In fact, someone who sticks with a job simply because of the compensation may display the traits of a disengaged employee.
The signs of disengagement include workers feeling detached from their employers and having no connection to the organization’s mission or goals. Without engagement, employees will feel like they’re stagnating in their jobs. Ultimately, that’s why engagement is so crucial to organizational success. Engaged employees love their jobs and are passionate about helping the company succeed. On the other hand, a worker can be disengaged for only so long before they look for a new job.
Engagement’s Impact on Employee Retention
Studies reveal a strong link between employee engagement and retention. An earlier Gallup poll found that companies with stronger engagement levels experience 18% lower turnover rates than those with low engagement levels.
Since many employers struggle with low retention rates, there’s value in boosting their engagement levels. Here are a few ways to increase engagement levels:
Effective Communication
Engaged employees understand their company’s purpose and mission. Effective communication is the best way to ensure all employees are on the same page and working toward the same thing. Every manager should have an open-door policy to foster an environment of accessible communication.
Share regular updates on company news and achievements. This can be done in a company newsletter, group meetings, or organization-wide emails. However you communicate your message, provide a way for employees to submit feedback to keep the conversation going. Also, don’t forget employees with remote work or hybrid work arrangements. Even though they may not always be in the office, their work and achievements are equally important.
Recognition and Rewards
Engaged employees typically feel like their accomplishments are acknowledged. Celebrating success is always a morale booster, which also increases engagement levels. You can offer rewards for exceptional performance, but be sure to celebrate all achievements amongst the entire company. Establishing a reputation for valuing employee contributions can go a long way toward a more engaged workforce.
Career Development
A common refrain among disengaged employees is that they feel like they’re “going nowhere.” Provide career development opportunities with training programs and succession planning. A clear path forward helps employees envision a long future with your organization.
Strong Engagement Helps Recruitment
Before taking any of the above steps to improve engagement, survey the company to acquire baseline data. Once you start to see some results, rerun the study. Hopefully, you will see higher engagement levels because this can be a powerful recruitment tool.
Your engagement data is evidence of your company’s commitment to its employees. Sharing the results of your surveys on social media or job postings is one way to get the data to job seekers. Word-of-mouth and referral programs are other ways to spread the message. You can also reserve some time during candidate interviews to discuss strong engagement levels, showing a candidate you value your workers and employee development.
Measuring Engagement and Its Effects
Make your engagement surveys a regular activity. If you can continue to raise engagement levels over a sustained period, you’ll continue to see improved recruitment and retention. Here are some of the metrics to look for that indicate high engagement levels:
- Absenteeism and turnover rates: Low rates of absenteeism and turnover can indicate strong employee engagement.
- Productivity: Track metrics like sales, product quality, and employee efficiency. Positive numbers also indicate an engaged workforce.
- Employee Net Promoter Score (NPS): This standardized survey asks employees how likely they are to recommend your company to other job seekers.
Takeaway: Employee Engagement is the Key to Improving Recruitment and Retention
Employee engagement is multi-faceted. It leads to happier and more motivated employees, and its positive effects help solve serious issues facing company leaders and HR teams. Recruitment is more challenging than ever, but strong engagement levels can help attract top talent to your organization. Maintaining strong engagement then helps lower turnover rates, helping to solve nagging retention problems.
To reap the benefits of employee engagement, you first need to see how engaged your workforce is now. Adopt engagement strategies to increase engagement levels, and you will have the advantage of a highly engaged workforce. For more tips on workforce policy across a wide range of industries, follow MRINetwork.