The Link Between Employee Engagement and Company Performance: Exploring the Impact

Employees are an integral part of every organization. They play a significant role in how an organization functions and grows over time. If the employees at your organization are motivated enough to complete their tasks on time and with full dedication, your business will definitely grow faster than the companies where employees do not feel valued at work. Research shows that workplace recognition and performance-based rewards play an important role in boosting employee engagement in a company. With higher employee engagement comes better productivity and higher overall efficiency. 

As per a study, over 64% of employees are disengaged at their workplace, with 13% being actively disengaged. This is because companies pay very less attention to motivating their employees, appreciating them, and recognizing their work. However, this is something that must be avoided if you want your organization to grow faster. Employee engagement impacts the performance and success of your company. Let us first help you understand what employee engagement is all about:

What is Employee Engagement?

Employee engagement is a term used to describe the relationship between an organization and its employees. It refers to the level of dedication and enthusiasm an employee shows toward their company. Companies with higher levels of employee engagement often see less absenteeism, higher productivity, on-time completion of projects, etc. On the other hand, organizations with disengaged workers tend to get affected by more frequent resignations by employees, missed deadlines, more absenteeism, etc. 

Studies have shown that only a few companies really focus on boosting the engagement levels of their employees. This is the major reason why most employees feel less motivated and are disengaged at work. By promoting an appreciation and feedback culture and offering employee motivation rewards at the workplace, companies can increase employee engagement and accelerate their business growth.

Relationship Between Employee Engagement & Productivity

Employee engagement is directly related to the productivity of employees and hence, that of the organization. An engaged employee is far more productive than a non-engaged one. As per a study, companies with higher levels of employee engagement are over 20% more productive than others. The more an employee is engaged at work, the lesser resources you need to make them perform their best. 

Engaged employees feel valued at work and see their company’s success as their own growth. They relate their personal goals with the objectives of their organization and always go the extra mile to achieve the same. Engaged employees actually want to perform great at work. They are not among the ones who just wait for office time to pass. Along with following your orders, engaged employees will always take responsibility for a project they are working on and will put maximum effort into it. 

On the other hand, a disengaged workforce is more likely to be less productive at work. If you are not paying attention to improving employee engagement at your workplace, you are actually losing on a lot of things. Disengaged employees are comparatively less productive and are more likely to miss deadlines at work. This generally happens when employees do not feel valued at their organization and are not recognized for their work. 

Does Employee Engagement Impact a Company’s Performance?

Yes, employee engagement has a close relationship with the overall performance of an organization. When employees are engaged, they are motivated to put in maximum effort. As a result, the profitability and overall success of the organization gets affected in a positive manner. Employee satisfaction ultimately plays a significant role in customer satisfaction. When your workforce is engaged, they are more likely to deliver better services to your customers. This is how high employee engagement can result in better overall performance and higher customer satisfaction for your business. 

Unfortunately, the converse is also true, i.e. less engaged employees lead to less effective customer service and impact the overall performance of your business. For your company to be successful, you don’t only need to focus on your marketing strategies but also on the levels of employee engagement at your workplace. Higher the level of engagement, the better the performance of your company.

How To Boost Employee Engagement in Your Organization?

The most effective way to increase employee engagement at your workplace is to run an employee rewards program. Employee rewards and recognition programs can boost employee loyalty and encourage them to perform better at work. You can partner with reward companies like RewardPort to run employee rewards programs that align with your organizational goals. Appreciating each of your employees by providing them with rewards, incentives, workplace recognition, etc, can result in higher levels of employee engagement. With this, the overall productivity of your company increases, resulting in better company performance and higher profitability.