The Importance of Investing in Employee Engagement

Monday, December 16, 2019

The Importance of Investing in Employee Engagement

It may seem obvious that employee engagement is an important factor for a well-performing organisation. But what does this term actually mean and how can it positively influence your organisation?

We speak of ‘employee engagement’ when talent understand and are committed to the values ​​and objectives of an organisation, and when they are passionate and motivated to achieve its goals.

An engaged workforce does not come easy. It’s a two-way street where an organisation must do its best to involve its employees and where employees themselves decide how much commitment they show in return. It’s a symbiotic relationship where both the employer and the employee support each other; if one side fails to support the other, engagement will quickly diminish.

How Important is Employee Engagement?

According to a survey conducted by Hays among employers in Australia, 83% of respondents believe that employee engagement is important to their organisation.[i]

Given the current financial environment and the lack of appropriate skills in many major economies, employers must increase their existing investments in human capital and engagement is an important aspect of such investment.

The four most important benefits of employee engagement are:


1. Employee Retention

Engaged employees are 87% less likely to leave.[ii]

In a market with a shortage of suitable candidates, the competition for experienced professionals will increase. Various independent studies have shown that engaged personnel are less likely to be tempted by offers from your competitors.

Moreover, employees who derive meaning and significance from their work are more likely to stay with the organisation.


2. Increased Productivity and Innovation

According to the Workplace Research Foundation, the chance of above-average productivity is 38% more likely with engaged employees.

Studies show that engaged employees are five times more likely than disengaged employees to say that their organisation is committed to bringing innovative products and services to the marketplace.[iii]

The same research confirms that disengaged staff actually act as a handbrake on an organisation’s efforts to accelerate productivity and innovation.


3. Better Results and Higher Profitability

Companies with engaged employees achieve better results than those without engaged employees, up to 202%.[iv]

According to a Gallup poll, companies in the upper quartile of engaged employees, compared to the lower quartile, are 22% more profitable and have 10% higher customer ratings.[v]

A Harvard Business Review also concluded that an engaged workforce has a positive influence on business and financial performance.[vi]


4. Proactive Workforce

Highly engaged employees are willing to go the extra mile. They are more likely to work outside of normal working hours when necessary, they are more helpful towards customers or colleagues and overall more willing to go beyond expectations.

In addition, the absenteeism rate for highly engaged staff appears to be lower than for disengaged employees. In the UK for example, engaged employees take an average of 2.7 sick days per year; the disengaged take 6.2 days.[vii]


Despite the benefits listed above, independent studies indicate that only 40% of employers believe their staff are engaged.[viii]

If you would like to learn more about how you can invest in your human capital and engage your talent via a native mobile app, visit our website and download Qualee today!

Power your people. Every day.

- Charley Caroline Zuidinga

  COO, Qualee Technology

[i] Hays: “Staff Engagement: Ideas For Action.”

[ii] Corporate Leadership Council: “Driving Performance and Retention Through Employee Engagement.”

[iii] InSync: “Unleash the Productivity and Innovation Within”

[iv] Dale Carnegie: “Training Course for Driving Employee Engagement”

[v] Gallup: “Employee Engagement Drives Growth”

[vi] Harvard Business Review: “The Impact of Employee Engagement on Performance”

[vii] Gallup: “Employee Engagement: How to Build a High Performance Workforce.”

[viii] Edelman: “State of Employee Engagement”

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