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7 reasons why employee engagement is important for your company success

Employee engagement is regarded as one of the fundamental principles of ensuring organizational success. It helps in cultivating a sense of employee happiness, improved productivity, and boosted profitability. Without proper employee engagement, an organization will find itself stuck in the realms of unhappy, dissatisfied, and unengaged employees.

Managers all around the world are increasingly becoming aware of the overall importance of employee engagement and how it drives company success. As per a study report, it is estimated that around 34 percent of employees were engaged in the respective workplaces. If you wish to know more about employee engagement, it is important to understand the benefits of employee engagement.

What Does Employee Engagement Actually Mean?

Employee engagement can be regarded as a dedicated workplace approach that results in the right conditions for all members of a team or organization to offer the best outcomes every single day. Engaged employees are known to feel committed to the values and goals of the organization with an improved sense of well-being.

As per the definition of employee engagement, an engaged employee is focused, motivated, and present in the workplace and its commitments. Engaged employees will go up and beyond the respective job role. They understand that they have a specific purpose within the premises of the organization.

Employee engagement is used to refer to the employees who have more reasons to attend their workplaces and work beyond the concept of paychecks. They feel absorbed, invested, and devoted to improving the operations, interests, and reputation of the organization.

7 Reasons Why Employee Engagement is Important for Your Company Success

Employee engagement within an organization is based on the notions of integrity, trust, communication, and two-way commitment between the organization and its members. It is a dedicated approach that boosts the opportunities for ensuring company success. Here are some more reasons to support the cause of boosting employee engagement within an organization:

#1 High Employee Retention

When employees do not get an opportunity to harness the respective strengths, they do not feel challenged at all. Moreover, they might also not enjoy working. All of these are hallmarks of poor employee engagement. Under such circumstances, employees are more likely to leave the current company culture.

On the other hand, engaged employees do not find any reason to look anywhere else for work. In addition to improved retention of employees, the process can also help in retaining valuable customers for any business. As your employees will be happy, the clients will be satisfied in turn. Businesses can make use of relevant employee engagement tools for the best outcomes.

#2 Increased Productivity

In a study, it has been reported that disengaged employees can cost an entire nation around $450 billion every year due to loss of productivity. The major takeaway is that employees are known to be more productive when they remain satisfied with respective jobs.

Job satisfaction offers employees ample motivation as well as energy to go beyond and improve job performance. Eventually, improved efficiency leads to improved work quality, and, therefore, benefits the overall results for any business. Employees should feel enthusiastic about their work. Moreover, they should be motivated to come up with innovative ideas for boosting productivity.

#3 Improved Customer Service

Even with the advent of self-service shopping experiences and increasing workplace technology, customer services tend to be more significant than ever. When employees tend to be engaged, customers will be well-served eventually.

Engaged employees are known to take care of the respective jobs deeply. Therefore, they take care of the end customers also. It is a good sign for your business. It is estimated that 7 out of 10 shoppers will be spending around 13 percent more money with an organization offering bespoke customer services and experiences.

#4 Increased Profitability

Every organization out there would like to have more profits into their accounts every year. As per the latest research, it is revealed that organizations that are highly engaged tend to feature 21 percent improved profitability. When your company experiences instances of higher profitability, you can consider re-investing in activities and technologies that help in boosting employee engagement.

When you do so, it will help in preserving the overall profitability growth. Moreover, it will also aid in keeping your company on the upward trajectory. An engaged workplace is responsible for fueling business success throughout. A positive workforce attracts and retains customers. Ultimately, it helps in driving more profits and revenues.

#5 Better Adoption of Initiatives

A happy employee will always be a loyal employee. When employees feel engaged and motivated, they are effectively capable of coming up with new ideas and initiatives every now & then. They feel committed to the organization. Therefore, engaged employees will always look forward to thinking of ways that can benefit the entire organization.

When employees are satisfied with the respective company values and culture, they are more likely to be in the given position. Moreover, they will be committed to the employer in all possible domains.

#6 Improved Communication and Collaboration

When employees find that their work is valuable and meaningful to the company, internal collaboration and communication improve significantly. Motivated employees are more open to facing challenges and developing plans together as a team. It turns to deliver positive impacts on cross-departmental communications and meetings.

Developing engagement with the help of collaboration and communication is crucial to driving a business forward. Some instances can be the creation of a communication toolkit and designing an open office plan.

#7 Enhanced Company Culture

When the staff of an organization feel appreciated and valued, it leads to positive company culture. Employees look forward to experiencing fulfilling and empowering work cultures. They wish to work in a pleasant, healthy environment. There should be the presence of open communication without any conflicts. Missions and values should also be clear. In such a scenario, success is also rewarded.


Employees are the most crucial assets of any business. Therefore, it is imperative for businesses to pay attention to maximizing employee satisfaction and engagement on the go. With a happier workforce, you can guarantee ample business success.

Kevin Legara
Author: Kevin Legara