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November 23, 2021

The Importance of Employee Engagement

By Adam Kemper.

Employee engagement should not be confused with employee satisfaction. While there is a correlation between the two, employee engagement involves much more than simply making sure your employees are happy.

What is Employee Engagement?

Employee engagement is the overall emotional relationship and commitment to the organization and its mission. When employees are actively engaged in the workplace, they have a strong connection to the organization, take pride in their work, and are committed to the mission and success of the organization.

Employee engagement is crucial to the overall success of your business. Employee engagement leads to higher retention, increased productivity, and better customer service, which in turn, results in higher profitability and happy employees.

Consider the following reasons why employee engagement is important.

Company Loyalty.

Employee engagement is critical to retaining top talent within your organization. When engagement is high, employees have a stronger connection to their job performance and the organization. Employees are more likely to cultivate meaningful and positive relationships with their colleagues and management. Engaged employees feel fulfilled by their work and believe in the impact of their contributions, leading to overall employee satisfaction and happiness. If employees are not engaged, there is very little incentive to stay. While this does not mean that a disengaged employee is actively looking for a new job, a disengaged employee is more likely to jump ship should the opportunity arise.

Increased Productivity.

Engaged employees perform at higher levels than disengaged ones. They are more motivated and focused. In turn, they work more diligently and effectively. This may also reduce absenteeism, boosting productivity. Some organizations may implement quota requirements or mandatory overtime policies to increase productivity. However, this type of productivity is only temporary and may not serve to positively and effectively increase employee engagement long-term.

Customer Satisfaction.

Engaged employees have a sense of ownership in the organization and take pride in their work. They are more likely to go the extra mile which leads to increased customer satisfaction and better business outcomes. Positive employee-customer relationships lead to loyal customers who return to the organization and ultimately promote business growth and increase revenue.

Profitability.

The success of your business is dependent on profits. There is no doubt that retaining employees, increased productivity, and higher customer satisfaction, increases profitability. Combined, all the benefits of employee engagement promote the profitability and success of your business, while simultaneously benefiting and promoting the success of your employees.

Looking ahead, employers would be wise to invest in employee engagement especially considering the drastic rise in remote workers. Engagement is important not only to retain the current workforce, but also to keep them motivated and productive. With remote work becoming the new normal for many, employees are no longer limited by their geographic location and have the freedom to work for anyone, from anywhere in the world. Fortunately, there are many effective strategies that can be implemented to engage remote workers.

Employees are an invaluable resource for organizations of all sizes in any industry and investing in your employees can have a tremendous impact on your business. Effective employee engagement requires an individualized and strategic approach.

The labor & employment attorneys at Kelley Kronenberg specialize in HR Consulting and have extensive experience in all areas of labor & employment law. Contact us to learn more about employee engagement and how it can benefit your business.

Click here to watch Kelley Kronenberg’s webinar, “How to Improve Employee Engagement and the Employee Experience“, moderated by Adam Kemper.


Adam Kemper is a Partner and Business Unit Leader at Kelley Kronenberg, focusing his practice on Labor & Employment Law.

Contact Adam Kemper at:
Phone: (800) 431-0574
Email: akemper@kklaw.com

DISCLAIMER: This article is provided as a courtesy and is intended for the general information of the matters discussed above and should not be relied upon as legal advice. Neither Kelley Kronenberg, nor its individual attorneys or staff, are responsible for errors, omissions and/or typographical errors – always seek competent legal counsel.