The Correlation Between Employee Engagement and Business Productivity

The Correlation Between Employee Engagement and Business Productivity

According to Gallup, engaged employees are “those who are involved in, enthusiastic about and committed to their work and workplace” – ( 

Employee engagement is crucial in the success and growth of any organization. When employees are engaged, they are fully committed to their work, motivated to go the extra mile, and aligned with the goals and value of the company. On the other hand, a lack of engagement can lead to decreased productivity, higher turnover rates, and a negative impact on the overall business performance. There is a very critical link between employee engagement and business success. Balance between both promotes positive work environment, fosters innovation and drive profitable business outcomes.

Employee engagement goes beyond mere job satisfaction, it reflects the connection employees have with their work and their commitment towards the organization. They become advocates for the company and its mission, to ensure success. 

Throughout this blog, you will uncover the significant ways in which employee engagement impacts your business and why it should be a priority for every organization.  

Importance of Employee Engagement

Statistics shows that 77% of employees believe that they do their best work when strongly engaged. Another 76% believe their productivity and efficiency is tied to an engaged culture ( 

Here are some reasons that back this figures:

Customer Satisfaction

Engaged Employees provide better customer service and are more attentive to customer needs. They have a positive attitude, which reflects in their interactions with customers. Satisfied customers lead to repeat business, positive word-of-mouth, and increased revenue.  As employees are more committed to their work, they are willing to go the extra mile to deliver high-quality results which enhances productivity.

Innovation & Creativity

Engaged employees are more likely to be proactive, take initiative, and contribute new ideas. They feel empowered to share their insights and perspectives, which fosters a culture of innovation and continuous improvement within the organization. When employees are engaged, they feel a stronger sense of loyalty towards the organization. They deliver ideas which provides the competitive edge over others in the industry.

Team Work & Organizational Culture

Engaged employees are willing to build stronger relationships with their colleagues, communicate effectively, and contribute to positive work culture. It enhances cooperation and synergy among employees. Employee engagement is also closely tied to a culture that values and promotes trust and open communication among employees. This, in turn, attracts top talent and drives long-term success.

How to Implement Employee Engagement Best Practices

Here are some best practices to foster employee engagement in an organization.

Effective Communication

Establish transparent and open communication channels. Regularly communicate organizational goals, strategies, and updates to keep employees informed and engaged. Encourage two-way communication, listen to employee feedback, and address their concern promptly. To promote communication, you need to ensure leaders and managers actively support employee engagement. Leaders need to be mentors who lead by example and demonstrate behaviors that align with organizational values.

Employee Appreciation & Professional Development

It is important to recognize and appreciate employees for their contributions and achievements. Companies need to implement formal recognition programs, and celebrate milestones and successes as a team. Along with that employees need to be provided with opportunities for growth and development. Conducting training programs such as workshops, and mentorship opportunities to develop their skills and knowledge. It will support their career progression and help them achieve their goals.

Empowerment & Work Life Balance

Companies need to empower employees to make decisions and take ownership of their work. Give them authority to exercise their creativity and problem-solving skills. It will encourage innovation and value-added ideas. Along with empowering employees, it is essential to promote work-life balance. Offering flexible work arrangements, such as remote work options or flexible hours, vacations to ensure employees don’t burnout.

Inclusive & Diverse Environment

Fostering an inclusive and diverse workplace where all employees feel valued and respected is vital. Companies need to embrace diversity of ideas, perspectives, and backgrounds. Implementing diversity and inclusion training programs and policies will promote equal opportunities for all.


The correlation between employee engagement and business productivity is undeniable. Investing in the initiatives is an investment in the success of the business. By creating an environment that values employee engagement, companies can unlock the full potential of their workplace, drive productivity, and achieve sustainable growth in today’s business landscape.



Jouany, V. (2023, June 2). 8 employee engagement statistics you need to know in 2023 [infographic]. Haiilo. 

 Lazic, M. (2023, May 20). 21 surprising employee engagement statistics you need to know. Find Best Law Jobs in the US in 2023.

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