How Does Employee Engagement Affect Business Results?

According to a survey, organizations that rank in the top 25% for employee experience have twice the return on sales as those in the bottom quartile. 

82% of employees at high-performing businesses are "highly" or "moderately" engaged, compared to 68% in low-performing companies.

How Does Employee Engagement Affect Business Results? 5 Key Factors

Employee engagement is the degree to which employees feel connected to the organization and the work they do. Commitment and drive are important components in employee engagement, and they occur when employees are connected with the company's values and goals. Employee satisfaction is also influenced by resources, openness, and effective communication.

Employee Engagement and Productivity

Employee productivity is critical for any firm since it leads to improved profitability. Unengaged employees are 18% less productive than engaged coworkers, according to a Gallup study.

Employees who are engaged are frequently driven for reasons other than monetary gain. They are dedicated to the organization's mission and believe they play an important part in achieving its goals. 

Engaged employees are more productive, with organizations with a high degree of engagement claiming a 22% increase in productivity. 

Employees that are engaged form stronger connections with team members, which leads to better, more effective collaborative efforts and fosters a feeling of connection that helps employees feel unified with the same goal. 

This increases an organization's overall productivity and helps employees solve obstacles that often hinder creativity. 

Must Read: Employee Engagement Explained: Understanding its Importance in the Workplace (

Employee Engagement and Absenteeism

Every year, absenteeism costs businesses a large amount of money. 

What factors contribute to absenteeism? While there are several reasons why employees avail frequent leaves, let's check the most common ones:

1. Employee Disengagement - An employee who is disengaged from their job and their organization is more likely to miss work.

2. Burnout and low morale - Increasing workloads without recognising employees' contributions causes stress and a general sense of unappreciation. Employees may feel justified in taking more time off as a result of this.The good news is that organizations with strong employee engagement might experience a considerable drop in absence. 

Employees who are enthusiastic about their professions are less likely to skip work due to job-related stress, which can be costly.

Absenteeism reduction benefits both an organization's financial line and its personnel. Absences are typically reduced because employees are less anxious, stressed, and burned out at work.

In case you missed it:How to Drive Employee Engagement and Productivity with Real-Time Informative AI-driven nudges (

Employee Engagement & Retention

Employee engagement increases retention rates, which improves a company's financial performance. This is owing to the cost reductions involved with replacing staff who depart. High engagement can lower turnover since engaged people are less inclined to leave their employment.

This assists organizations in avoiding the costs of turnover associated with the recruitment and onboarding of new personnel, loss of productivity, and the consequences of disengagement on performance.

Employees who are engaged are more loyal to the organizations for which they work and are more likely to stay in their positions.

Highly engaged individuals are less likely to leave their organization, while companies with high employee engagement have reduced turnover rates.

Due to the expense of replacing staff and the loss of efficiency, high turnover creates considerable performance losses for businesses. 

Fact: It costs firms six to nine months of an employee's salary to replace them. 

Also read: Future-ready Leave and Attendance Management System for HR - HONO

Employee Engagement and Customer Satisfaction

Employees who are engaged in their employment are significantly happier than those who are disengaged. And happy staff mean happy consumers. These satisfied clients are more inclined to do business with the company again.

Employees that are engaged take pride in their job. When employees take pleasure in their profession and have a sense of purpose, they are better equipped to serve consumers and give a higher level of service.

Employees that feel valued and appreciated are more likely to interact with consumers and to go above and beyond for them. This results in a great client experience and high levels of satisfaction.Providing a great experience for the customer is critical to customer retention, and staff engagement has a significant impact on customer retention. Superior service not only improves client retention, but it also develops favorable attitudes towards an organization and can increase its reputation with future consumers. 

Positive customer evaluations and word-of-mouth recommendations that emerge from excellent customer service may raise awareness and respect for a company's brand and help it stand out from rivals. 

Benefits of an Engaged Workforce

  • Employees that are engaged are self-motivated.
  • Have a firm grasp of their responsibilities
  • Recognise the importance of their work and concentrate on future training and growth
  • Feel as if they are a part of the community—that is, the organization

How to Engage Your Employees? 5 Ways to Improve Employee Engagement

1. Encourage two-way communication

The first criterion for promoting employee engagement is to keep employees informed. Organizations that are secretive and only provide information on a "need-to-know" basis would most certainly have lower employee engagement rates. 

When workers understand how corporate actions will affect the workplace or how they should handle circumstances, they gain trust.

2. Encourage Community Involvement

An organization is essentially a community in which each member performs a specialized role while also serving the community as a whole. Any engagement activity, from organizing a large yearly event to just taking a team out to lunch, may serve to foster this community feeling among your employees. 

Regardless of the organization's structure, it is preferable to maintain a degree of equality and impartiality in which everyone feels essential to the community.

3. Recognise Excellent Work

Two out of every three employees believe they do not receive adequate appreciation for their efforts. As a result, most employees will not perform to their full ability and may engage in undesirable behavior. Furthermore, highly trained and skilled staff is continuously on the lookout for greater opportunities. As a result, it is prudent to foster a recognition-rich workplace in which outstanding performance is recognised with benefits and incentives. A few encouraging words and a certificate of recognition may go a long way towards making people feel valued for their efforts. 

4. Invest in Personal Development

This is part of the human capital management nurturing phase. Every human asset you acquire should be nurtured and polished in order to contribute to the organization's long-term success. 

You are not only investing in the future of your firm by operating a customized training programme or supporting further education for your personnel; you are also fostering a sense of loyalty among your employees.

5. Develop a Sense of Purpose

Although a large salary is important, when an employee has an emotional connection to your business, they will be able to give a larger personal commitment and do considerably more. 

One method to accomplish this is to communicate to your staff the significance of their contributions. Tell them how it is assisting the organization in meeting its business objectives. Simply said, organizations must begin to make their staff feel important.

How to conduct employee engagement surveys and enhance employee engagement? We have the solution for you.

You can easily measure sentiment and reactions, run feedback surveys, and enjoy real-time response monitoring and reporting with HONO Pulse, all driven by our powerful AI-backed technology.

What exactly is HONO Pulse? 

HONO Pulse is a powerful employee engagement tool that helps businesses connect with their employees, understand their needs, and improve their overall well-being. The platform offers a variety of features, including seamless survey distribution, robust data analysis, and actionable insights.

The primary goal of HONO Pulse is to help organizations improve their employee engagement efforts. By leveraging the tool's features, businesses can gain valuable insights into employee sentiment, needs, and concerns. This information can then be used to make informed decisions about how to improve the employee experience.

Feel free to contact our team of experts here for additional information or to schedule a demo. Let's take employee engagement at your firm to the next level with HONO Pulse!

Frequently Asked Questions

1. What are the benefits of employee engagement?

The benefits of employee engagement are numerous, both for businesses and employees. For businesses, the benefits include:

  • Increased productivity
  • Lower turnover rates
  • Improved customer service
  • Increased innovation
  • Enhanced brand reputation

For employees, the benefits of engagement include:

  • Greater job satisfaction
  • Increased sense of belonging
  • Improved well-being
  • Increased opportunities for advancement

2. How to improve employee engagement in an organization?

There are many things that businesses can do to improve employee engagement. Some of the most effective strategies include:

  • Providing clear and consistent communication
  • Giving employees a sense of ownership and control over their work
  • Offering opportunities for learning and development
  • Creating a positive and supportive work environment
  • Recognizing and rewarding employee contributions

3. What are the challenges of improving employee engagement?

There are a number of challenges that businesses face when trying to improve employee engagement. Some of the most common challenges include:

  • Lack of time and resources
  • Lack of leadership commitment
  • Cultural barriers
  • Individual employee differences

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Senior Industry & Consulting Leader, Rajesh Padmanabhan Appointed As Chairman, HONO

Senior Industry & Consulting Leader, Rajesh Padmanabhan Appointed As Chairman, HONO

Senior Industry & Consulting Leader, Rajesh Padmanabhan Appointed As Chairman, HONO