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Employee Engagement Tool
Performance Evaluations
Conduct more complete employee reviews, increase feedback, and simplify management.
Employee Engagement
Facilitate better communication, stronger company culture, and a greater sense of purpose.
Talent Management
Achieve talent maximization through planning, execution, and culture-building.
Employee Performance Management
Kudos & Shoutouts
Employee Surveys
Employee engagement… We hear a lot about it—increasingly so, year over year. It’s clearly important and top of mind for most businesses, but what exactly do we mean when we talk about employee engagement? Why is it so important? How is HR involved? And most importantly, what can organizations do to improve employee engagement over time?
Let’s explore, in comprehensive detail, everything about employee engagement—from an HR and overall business perspective.
I. What is employee engagement?
Employee engagement is a critical Human Resources (HR) concept that describes the level of enthusiasm and dedication employees feel towards their job. Engaged employees have a higher mental commitment and emotional connection to their work, their team, the organization, and its overall goals.
Employee engagement is a key indicator of a healthy and productive workplace—one where employees feel connected and valued in their roles and to the company overall. With higher engagement, employees care more about their work, the people, and the performance of the company.
Generally, engaged employees are not just going through the motions or working for a paycheck, but are:
- Genuinely interested in their work
- More actively involved in the company
- Motivated to contribute to the organization’s success
- More likely to positively affect the company culture
- Less likely to leave the organization for another job
What is employee engagement not?
As important as defining what employee engagement is, it is equally important to clarify what employee engagement is not. Employee engagement does not necessarily mean employee happiness, satisfaction, or well-being.
Yes, engaged employees are typically happier and more satisfied with their roles and company, but the terms are not synonymous. While HR is heavily involved in defining, measuring, and improving all things people-related, employee happiness does not necessarily translate to being productive or involved.
Likewise, employee satisfaction is intertwined with engagement, but not exactly the same. By definition, satisfaction implies the bare minimum. Satisfied employees might show up, do the work, and rarely complain, but again, that does not make them “engaged.” Ultimately, a satisfied employee isn’t enough. HR must strive for more to reap the true benefits of engaged employees.
Finally, employee engagement also does not equate to employee well-being. Employee well-being evaluates far more of an employee’s life, including stress management, mental health, burnout, and more. A variety of HR resources and initiatives designed to increase employee well-being can, in turn, increase employee engagement.
1 in 5
employees were highly engaged and still at risk of burnout
source: Yale Center for Emotional Intelligence
Levels of employee engagement
Highly engaged employees
Akin to brand advocates, these employees not only hold a very favorable opinion of their company, but are likely to speak highly of it to family, friends, and colleagues.They are more likely to inspire and encourage other employees to the benefit of the entire company.
Moderately engaged employees
This next level of employees view their organization in a favorable light, but something is holding them back from full engagement. It could be something about the company, their manager(s) or team, or job duties and expectations. Ultimately, these employees are less likely to seek more responsibilities and may experience spells of underperforming.
Barely engaged employees
These employees feel largely indifferent toward their company. They may or may not have major issues, but typically lack the intangibles of highly engaged employees and often coast through. Barely engaged employees are a high turnover risk.
Disengaged employees
This final and lowest level of engaged employees likely have a negative opinion of their workplace. They are disconnected from the organization’s mission, values, goals, and future. They lack commitment to their role and responsibilities. It’s important to recognize, understand, and address these employees to avoid spreading their negative impact on other employees.
81%
of executives strongly agree that highly engaged employees perform better and are more productive than low or average engaged employees
source: Harvard Business Review
II. What is the importance of employee engagement?
Employee engagement means feeling connected to the company, its mission, co-workers, and clients. Engaged employees do more than “show up” for work–they put real effort into helping the whole company succeed.
85%
of U.S. workers are NOT ENGAGED in the workplace—a number that has increased steadily for several years
source: Gallup’s State of the Global Workplace 2023 report
More than an ideal to strive toward, employee engagement is essential for running a successful business. As long as we’re dealing with human workers instead of robots, people need to care about the work they’re doing, where they do it, and how they do it. Without engagement, inattention and indifference lead to wasteful mistakes.
Companies with engaged employees show better results when compared to those that do not, including
source: Gallup Employee Engagement Survey 2023
14%
Increase in productivity
23%
Increase in profitability
10%
Increase in customer ratings
13%
Increase in organizational participation
18%
Increase in sales
Why is employee engagement so important?
Minimize turnover
Workers who feel connected to their job and their colleagues are less eager to find jobs elsewhere. Reduce turnover by putting your people first.
Increase productivity
Motivated workers are more alert and energized, going beyond the bare minimum. Disconnected workers may show their discontent by things like “quiet quitting.”
$8.8
trillion in lost productivity is the cost companies face due to disengaged employees.
source: Gallup’s State of the Global Workplace 2023 report
Boost innovation + creativity
For all its impressive potential, AI can’t replace human logic and experience. When they’re engaged, your employees have the insight to identify inefficiency and problem-solve.
Improve profitability
What if your whole team worked as hard as the peak performers at your company? Engaged workers “go big” until it’s time to go home, and they return to go big again tomorrow.
Ensure better customer service
Customers can be hard to satisfy, and they’ll notice when your staff doesn’t seem to care about the company’s reputation. In industries like HR software, customer service has to be excellent.
4x
Good company culture, leadership initiatives, and higher employee appreciation can increase revenue by up to 4x.
source: Forbes
Key areas where HR can improve employee engagement
Managers might affect the day-to-day of their direct subordinates more, but HR staff is uniquely positioned to boost employee engagement throughout the company and for the long-term. Here are just a few of the areas where HR can make a huge impact.
READ: People Over Policy: HR’s Vital Role in Employee Engagement
Communication
Use multiple channels and stay connected throughout the employee lifecycle. HR staff needs to communicate clearly, but you also get to set the tone for workplace communication. Keep messages simple while also friendly, and stand behind your words with meaningful action.
Recruiting
Use a human-first approach to recruiting and hiring to make connections from the beginning of the first interview. Some employers treat applicants and new hires like they’re easily replaceable, which doesn’t encourage feelings of job security or loyalty.
Onboarding
Instead of just checking off required paperwork, use this time to make a PACT with new employees. Your company’s relationship with employees should be mutually beneficial, and onboarding should explain to new workers “what’s in store for them.”
Training
When employers provide only the bare minimum training to staff, it suggests a culture of “good enough.” You can change how workers think about training with meaningful learning programs, ongoing professional development, and cross-training to strengthen the whole company.
53%
of HR executives say good onboarding increases how engaged employees are
source: G2
Performance
Pep talks and bonus incentives have their place, but more is needed to boost performance. Different workers need different types of guidance and motivation. Build a strategy to move beyond traditional HR reporting and empower your company with more actionable insights.
Recognition
Specific and timely kudos make your employees feel “seen” and appreciated. Make sure your leaders understand the importance of employee recognition for engagement and productivity.
80%
of people felt learning new skills would make them more engaged at work
source: Udemy
Retention
It’s tragic to hear about preventable problems in exit interviews or while offboarding. Conduct stay interviews to get ahead of turnover and protect high-performers. Identify pain points and issues before they escalate. Set expectations and listen carefully to feedback and concerns.
Technology
The right tools make every job easier, and that’s even more true with HR software. Simplify engagement and talent management with NetEngage. Empower your team with greater access to self-service portals and automation that reduces annoying mistakes on payroll.
87%
Engaged workers are 87% less likely to leave their company than unengaged employees
source: HubSpot
Career growth
Help employees set their own SMART goals. (Specific, Measurable, Achievable, Relevant, and Timely). The review process feels less arbitrary when it includes professional development and coaching toward the employee’s own goals.
Employee well-being
Go beyond traditional benefits by developing a wellness program with mental health resources. Employee Assistance Programs (EAPs) connect your workers with legal services, relationship counseling, childcare, and financial services.
29%
Only 29% of employees are happy with career advancement opportunities
source: SHRM
Company culture
Use HR surveys to create a culture of employee feedback. People want to have their voices heard, and your employees have valuable insights to offer. Be prepared to reconsider your priorities and policies when confronted with new information.
READ: People Over Policy: HR’s Vital Role in Employee Engagement
89%
of employees working for companies with wellness programs are engaged and happy with their job
source: Wellable
III. HR’s growing role in employee engagement
Employee engagement makes a night-and-day difference in the culture and performance of a company. Work-life balance is impossible when employees feel miserable and unappreciated. When workers are motivated and energized, it’s easier to solve problems. Engaged employees feel like they’re doing a good job and making a difference.
Who is responsible for employee engagement?
Everyone at your company plays a role in employee engagement. We all have opportunities to motivate and inspire each other, and everyone has a degree of responsibility for their own attitude.
That said, HR carries the largest share of responsibility for company-wide engagement. Without the authority and influence of HR, individual workers have only a limited influence on their peers.
DISCOVER: The Future of HR: New Roles Emerge to Boost Engagement and Retention
How can HR improve employee engagement?
HR staff have the unique ability to learn about the average employees and communicate directly with the CEO and upper management. Here are just a few of the ways HR can encourage and inspire employee engagement.
Effectively measure engagement
How do you know your employees are feeling engaged and motivated? “I know it when I see it” is true sometimes, but that doesn’t give you measurable data for month-to-month and year-over-year trends. Use multiple indicators that you can track over a longer period.
Performance management
Collect the right data from performance management reviews. Schedule regular 1-1s and performance reviews that include clear objectives and goals to achieve better employee engagement. Always establish expectations and plan a timely follow-up.
READ: 7 Must-Haves for Successful Employee Review Process
Manager effectiveness
Follow team performance and other key metrics for manager effectiveness. You can’t have an effective and motivated team as long as your leaders and coaches are ineffective. Even small things like frequent one-on-one meetings help employees feel valued.
58%
of employees say complacent leadership is the top reason they feel disengaged
source: Zippia
Retention
Unhappy, disengaged workers are more eager to find jobs elsewhere. Test different HR strategies to reduce turnover, especially equal pay and industry-standard raises. Things like upskilling and mental health are more important than ever in the workplace.
HR data
Track KPIs for individuals and teams. By leveraging actionable insights, HR professionals can:
- Make data-driven decisions that positively impact the organization’s bottom line
- Proactively address critical HR challenges and optimize workforce performance
- Streamline processes and reduce admin burden, freeing time for strategic initiatives
- Foster a positive company culture and attract and retain top talent
- Drive growth while reducing labor cost by aligning HR strategy with company objectives
LEARN: HR Analytics: What do Data & Reporting Mean for Human Resources?
Provide better technology + tools
Help employees feel empowered with mobile-friendly self-service portals. Integrate compatible software that automates the most tedious, repetitive tasks.
READ: Don’t Fear HR Automation, Embrace It to Create Better HR Processes
Promote 1-on-1s between managers and employees
Schedule frequent meetings between employees and their managers to set, measure, and track employee goals. Workers will feel more engaged when they see themselves achieving their own goals. Productivity and KPIs still matter, but regular meetings should be a two-way conversation.
85%
of employees take more initiative when they receive feedback in the workplace
source: Zippia
Communicate clearly and consistently as HR
Use multiple communication channels and be consistent. Make sure policies are updated in the employee handbook, Format your communication with clear subheadings, short paragraphs, and other best practices for HR comms.
Make onboarding more comprehensive
Sets the stage for success by using HR software to avoid common onboarding mistakes. Make new hires feel connected, going beyond the bare minimum. The onboarding process demonstrates many things to new employees for the first time.
91%
of employees that received a consistent employee experience reported higher engagement levels
source: Kincentric
Develop and deliver on HR initiatives
More so than other departments, HR addresses employee engagement directly. DEI initiatives give everyone a voice. Develop HR initiatives that reflect the unique priorities of your workforce, and make sure that your words are backed up with meaningful action.
Increase recognition and incentives
Use a combination of public and private recognition to celebrate achievements. Promote a culture of encouragement and appreciation, especially at the team and supervisor level..
Foster professional development + continued learning
You can’t offer everyone a promotion or guaranteed raise, but you can provide ongoing learning and training for professional development. An LMS makes it easy to provide continued learning programs.
Connect with employees on what they care about most
What are the top priorities for your employees? What causes are they passionate about? A workplace giving program connects your company with a favorite charitable cause, while others will be more motivated by perks that help their families.
DISCOVER: Employee Perks: 15 Emerging Trends Your Company Should Consider
Create a less stressful and more enjoyable work environment
Insufficient and unclear communication creates confusion. HR staff can change the mood as well as the company culture. Too many spontaneous, half-baked HR activities can add stress for workers.
IV. Keys to meaningful employee recognition
Employee recognition and appreciation can make a big difference in motivating workers. Managers and employers tend to assume that salary, benefits, and work-life balance are the biggest reasons for good workers to quit. However, a majority of employees report that “not feeling valued by their organization” is a top-three reason for leaving a job.
52%
of employees report that “not feeling valued by their managers” would be a top reason to quit
source: Business Insider
Compared to the cost of raises and other financial incentives, simply showing appreciation for employees is a no-brainer. Employee recognition provides a meaningful boost to morale and company culture.
What is employee recognition?
Most companies recognize employee achievements sooner or later. But employee recognition should be a much bigger part of company culture.
Make a habit of giving kudos to the workers who go above and beyond expectations. Show appreciation for those who perform the less glamorous, usually thankless tasks. Some workers may earn additional certifications, and others deserve thanks for merely sticking with the same company, year after year.
Employee recognition doesn’t always have to come from the employer (or even the manager), but it gives positive reinforcement to encourage achievement. The ability to give public recognition from one employee to another can go a long way as well.
Retain top talent
Nobody wants to stay where they aren’t appreciated. While employers can’t offer a steady stream of promotions and raises,employee recognition provides a sustainable way to celebrate your most skilled and talented staff. Show that their effort and achievements are appreciated.
Increase employee engagement
Given the national trend toward disengagement, individual employers have an opportunity to stand out by making their workplace more supportive. Recognition and encouragement make workers feel more engaged and less invisible.
18%
of employees are “actively disengaged,” compared to just 30% of workers who feel “positively engaged”
source: Gallup
Encourage high performance & productivity
Productivity has an immediate, measurable impact. Workers may have different reasons for going above expectations, but the results deserve recognition. Some jobs don’t always include opportunities to “shine,” but you can recognize achievements in safety and consistency.
Improves company-wide awareness
As long as they aren’t in direct competition, workers are generally supportive of each other. They want the company to succeed, but they aren’t typically aware of high performers in distant departments. Employer recognition boosts the visibility of workers who might not be socially extroverted, but their productivity sets a good example for peers.
1/3
Less than a third of workers have recently received (within the last year) recognition or praise for good work
source: Gallup
Promotes positive work environment
Popular terms like “quiet quitting” and “bare minimum Monday” reflect a jaded feeling among workers. It’s easy to underestimate the importance of little gestures like expressing gratitude. Employee recognition is a powerful way to set a more positive tone in your company culture.
19%
Only 19% of black employees and 21% of hispanic employees strongly agree that they receive a similar amount of recognition as other team members
source: Gallup
How to recognize employees
Public recognition
Public recognition gives co-workers, friends, and family a chance to congratulate your hardest workers. You can choose an “employee spotlight” or recognize a specific achievement on the company’s social media. Large awards might warrant a press release to local media. The downside of public recognition is that it needs to be used somewhat sparingly. Many of the employee achievements that deserve a “thank you” don’t really warrant a press release or social post. Company meetings can include a few employee recognitions and awards, giving the recipients a little publicity within the office.
Private recognition
Even when you aren’t shouting praises from the rooftops and street corners, you can still give a meaningful “thank you” in private. Ideally, managers and team leaders should already be making a habit of encouraging their teams regularly. Even without anything particularly praise-worth, it is helpful to check in one-on-one and see how they’re doing personally. Higher-ups can also reach out to congratulate high achievers in a more meaningful way.
40%
of employees rank managers as the group that has the most impact on them recognition-wise
source: Nectar
5 keys to meaningful employee recognition
Be specific and timely
Generic thanks like “keep up the hard work” can feel impersonal and insincere. Tell workers exactly why they’re being recognized. Don’t delay the recognition for months, or the reward will seem disconnected from the original achievement. Specifics are helpful when recognizing workers publicly, essentially letting others know how to earn similar recognition.
Recognize employees in multiple ways
Small treats and kudos can be as simple as candy or a gift card, but bigger achievements should earn proportionally bigger rewards. For greater impact, don’t forget to acknowledge the same achievement in multiple ways.
78%
of employees would be more productive if they were recognized more frequently
source: Nectar
Make it easier for employees and managers
Recognition can be awkward, especially when there’s no formal process. Managers should be vigilant for achievements that warrant kudos, incorporating them into performance reviews. Employees shouldn’t be “put on the spot” to respond or participate in award recognitions.
When the recognition process becomes a welcome and more familiar routine, it becomes easier for everyone. Detailed reporting software should make it easy to see which employees have been especially productive.
Provide context
When awards seem unjustified, they can brew resentment and jealousy. Workers in other departments may not understand the criteria for recognition. Provide context for special recognition, including transparency about the selection process.
Routine performance reviews can include an invitation for workers to nominate their colleagues for specific kudos. When an employee has made a positive impression on the rest of their department, the compliments from coworkers can be rewards on their own.
52%
of employees have employee recognition programs at their company
source: SHRM
Connect achievements to the bigger picture
Kudos provide an opportunity to remind everyone of the big picture. Hard work and productivity helps out everyone, and you can connect those dots as part of the recognition.
Sometimes recognition might come from an external customer who commented on their exceptional service. With this, you can emphasize how the whole company benefits from loyal, invested customers.
V. How do you create a culture of employee feedback?
HR surveys are one of the best tools for measuring and tracking employee engagement, while also establishing and promoting a culture of employee feedback. When used correctly, routine surveys can track the employee experience, identify problems, and open up new channels for communication and accountability.
Engagement often affects productivity, but it’s possible for a highly productive worker to be miserable and eager to leave. Surveys allow you to measure changes in this rather subjective personal judgment.
Using HR & engagement surveys
A survey is a more modern and active way to solicit employee input. Employee surveys collect feedback from workers, usually in response to specific questions. They can be submitted on paper or electronically, though like most of HR, online surveys are increasingly the norm.
Surveys can poll workers on recent changes, new proposals, and brainstorm ideas. More general questions about employee satisfaction and motivation can serve as “climate” or “pulse” surveys.
Open-ended fill-in-the-blank questions can capture meaningful qualitative data, but rigid scales like “rate from one to five” make it easier to compare changes over time. Some of the most meaningful information comes from seeing how employee satisfaction changes over the years.
44%
of employees that change jobs or participate in quiet quitting cite lack of input and engagement as a contributing factor.
source: WorkTango
Timing and frequency
When companies decide to measure engagement, too many rely on questions added to a lengthy annual review. In order to identify changes in a timely manner, engagement surveys should be used a few times a year, ideally in a quarterly cycle.
You probably have one or two primary goals with surveys, like collecting feedback on a new policy, but try to plan ahead for the big picture. Properly managed surveys can accomplish several things at once for HR—eliminating the need to send out multiple surveys (which can easily cause feedback fatigue).
5x
Administering surveys 4 to 5 times a year has been proven to provide optimal results
source: Quantum Workplace
Different types of surveys should be used at different times.
- Reviews and 1-on-1s with team leaders can include a few short rating questions
- Broader surveys about the overall company culture should be less frequent
- When training on new policies and procedures, survey workers to explore their thoughts and test their comprehension of the training material
- When new initiatives strive to improve the company culture, it’s good to compare employee survey results from before and a few months after the new program
95%
of employees who say their leaders take effective action on survey results are highly engaged
source: Quantum Workplace
Tips for creating HR surveys
Align with leadership
Everyone will get frustrated if your survey fails to align with the priorities of management. Make sure your targeting metrics that matter for leadership, and they’ll be more open to changes that target improvement in those areas.
Keep it short and simple
Don’t make surveys so long that they become a distraction from daily tasks. Your routine engagement survey should be short enough to complete in 5 to 10 minutes.
Answers will be less reliable on long, tedious surveys—and some workers will just skip them altogether. Try to avoid multi-step and open-ended questions. Simple number-rating scales will provide useful data that’s easier to compare later.
Too many questions and frequent surveys can lead to fatigue and rushed, inaccurate answers. Skipping questions and avoiding questions can be a sign of disengagement, which might also lead to turnover.
20%
abandon rates for surveys that take more than 8 minutes to complete
source: Office Vibe
Involve employees in design and analysis
Surveys can open channels of communication before they even begin. Choose a couple of workers who can help you design the questions. Representatives from different departments can anticipate how employees might respond to different questions.
Explain the purpose of your survey (and make sure you’ve clearly defined the purpose for yourself). If results are surprising, then employee representatives may be able to explain the disconnect.
Choose the right questions to ask
Make sure the survey focuses on metrics that you can actually address, so workers don’t feel ignored. Think critically about your own bias and the mindset of employees.
- Are certain assumptions baked into your questions?
- Will employees be afraid of causing problems if they answer honestly?
- Are you prepared to take action to correct problems identified?
Ensure anonymity and confidentiality
Employees won’t be honest if they’re afraid of negative consequences. Unfortunately, it’s very hard to ensure anonymity when you administer surveys internally. Paper surveys are time-consuming to implement and impractical with remote or hybrid workforces.
Always follow-up and share results
You can’t be expected to act on every single response. Nevertheless, just sharing the results of surveys will help employees feel heard. Without providing too much detail, you can assure participants that you’re taking action based on employee feedback.
You may not want to provide specific averages on the answers to different questions, since workers might adjust their personal answers in response to the averages. Try to make real changes in response to survey feedback, and employees will appreciate the visible effort.
Only 25%
of employees believe their organization takes effective action based on the feedback they provide through surveys
source: TINYpulse
Communicate early and often
Some surveys and feedback have no visible impact on the company. From the employee perspective, those surveys feel like a waste of time. Communication from HR can set realistic expectations and make employees feel more engaged with the survey process.
READ: Top Ten Tips for Improving HR Communication
- Expectations: Be honest with workers about the goals and scope of surveys. Don’t set unreasonable expectations by floating the possibility of new benefits or massive changes.
- Transparency: Update employees throughout the process and share the cumulative results. What departments had the highest participation rate? Has the average engagement gone up or down?
- Follow-up: Get buy-in from managers about making changes in response to survey feedback. Highlight when changes are being made in order to improve engagement.