Engagement is therefore not just a popular topic; it is a critical issue that keeps many leadership teams up at night. Identifying a lack of engagement and commitment is one thing; improving it is a different challenge altogether. Moreover, engagement often appears to be an intangible and difficult-to-define concept. However, there is good news: engagement can be defined, measured, and cultivated.
How Can You Recognise Engagement?
We are often inspired by exceptional achievements. Last summer in Paris, we once again witnessed the many compelling and moving stories that the Olympic Games bring us every four years. We saw winners and losers, joy and disappointment, determination and reflection. What we often do not see is how these results are achieved, not just the training regimens and schedules, but also the organisation behind them. Interviews with Dutch gold-medal teams in athletics, rowing, and hockey, as well as with disappointed judokas, occasionally reveal some of the underlying dynamics. What stands out most is the presence of highly engaged, committed individuals who consistently perform under pressure. It is truly inspiring to witness.
This type of behaviour is also present in the business world, though you won’t find those stories on prime-time TV. But they do exist: organisations that successfully launch new products time and again, achieve high customer satisfaction scores, or consistently outpace their competitors in growth. What enables them to move from one success to the next?
How Do You Define Engagement?
To answer that question, we must first take a closer look at the concept itself. We define an engaged employee as someone who is passionate about their work and fully committed to achieving goals and objectives. They are intrinsically motivated to perform at their best and continuously seek to develop their skills and knowledge. Such individuals are also more likely to think innovatively, take initiative, and feel a strong sense of ownership in the success of their organisation.
Engaged employees are not only more productive and effective in their roles, but they also tend to be more satisfied with their jobs and have lower absenteeism. In addition, they positively influence their work environment and organisational culture, foster stronger relationships with colleagues, and demonstrate greater loyalty to their employer. Their attitude and enthusiasm often have a contagious effect on those around them.
In short, engaged employees are energetic, committed, focused, and take genuine pleasure in their work.
How Significant Is the Impact of Engagement?
As mentioned earlier, the impact of engagement on a company’s key performance indicators has been extensively studied and even quantified. Research shows a direct, measurable correlation between employee engagement and organisational productivity. For example, highly engaged organisations experience 78% less absenteeism and 51% lower employee turnover. They are also 18% more productive and 23% more profitable. Those are substantial figures. (Source: Gallup)
Engaged employees are far less likely to leave the organisation, resulting in lower staff turnover. Your top talent stays. This brings stability and, importantly, helps retain valuable knowledge and experience. Moreover, an engaged organisation acts as a magnet, making it easier to attract new talent, especially in times of labour shortages. As a result, recruitment and selection costs are significantly reduced, less time is spent on hiring processes, and vacancies remain open for shorter periods.
Engaged employees are typically mentally healthy, optimistic, and driven. This contributes to lower absenteeism-related costs. Their vitality, dedication, and focus have a direct positive impact on productivity, and they influence those around them in a similarly positive way.
The Pain Points of a lack of Engagement
Highly engaged employees, teams, and organisations are often easy to recognise and are commonly acknowledged or even rewarded; such as being named “employee” or “team of the month.” But how do you identify underperforming teams?
As mentioned earlier, high absenteeism and turnover are clear indicators that something is wrong or can be improved. Likewise, low work quality and underwhelming products are important warning signs. Understanding the root causes behind these signals is essential. Is it due to excessive workload or a psychologically unsafe work environment? Poor work relationships or unclear responsibilities? Do employees lack autonomy, or are goals vague or poorly communicated? Perhaps there is weak leadership? There are countless organisational pain points that can reveal where things are going wrong and, more importantly, where improvements can be made.
The Importance of Employee Surveys
Before initiating any improvement process, it is essential to gain a clear understanding of what is going well, and what is not, within the organisation. An employee survey is a vital tool and an indispensable first step in this process. It is crucial to identify both areas for improvement and key strengths. Only when the right questions have been asked and answered can you begin building truly engaged organisations, teams, and individuals.
Would you like to learn more about how we foster engagement within organisations? Read more here or contact us to schedule an inspired conversation about people, teams, and productivity.