the benefits of employee engagement

Understanding, Communicating, And Applying Employee Engagement Benefits In Your Organization.

Whether it's business as usual or your organization is in crisis, you'll have an advantage in understanding the benefits of employee engagement.

benefits of employee engagement

"Are your employees engaged?" asks the consultant. "Yeah, sure they are. Now can we talk about systems/strategies/goals/revenue instead?" replies the executive.

This isn't to place business leaders in a bad light, yet this is a common conversation in organizations. It highlights the tendency to focus on symptoms of an issue, rather than on root cause.

How Do We Know Employee Engagement Is The Issue?

It might not be. But, those areas of operational systems, growth strategies, organizational goals that support top line revenue and bottom line profit are all influenced by your organization's levels of employee engagement.

Choose Not To Take A Closer Look, And Your Risk Goes Up.

investigative analysis
financial analysis

"Shouldn't employees be engaged because they have jobs with our organization?" asks the CEO.

Woodruffe (2006) suggests that leaders of this type follow the outdated belief that money is the only source of motivation, and that issues of motivation or engagement can be erased by increasing salaries.

Beyond compensation, employee motivation is driven by the following (Pokorny, 2013):

  • Opportunities for collaboration
  • A participatory environment
  • An atmosphere that encourages social experiences
  • The alignment of personal and professional values

The Consequences Of Employee Disengagement?

overworked employee

By focusing on one motivator in money, and failing to recognize the many drivers of employee motivation, employee disengagement grows.

Disengagement should be of concern as, according to Gallup (2018), in comparison with companies of the lowest employee engagement, companies with the high employee engagement are:

  • 17% more productive
  • 21% more profitable

"Leave one wolf alive, and the sheep are never safe," said Arya Stark in Game of Thrones. This applies if you consider the wolf as employee disengagement and the sheep as your organizational goals.

3 Benefits Of Employee Engagement.

1️⃣ Your Employees' Well-Being Will Improve.

employee wellbeing

Research has supported a link between levels of employee engagement and the following employee qualities (Bailey et al., 2017; Crawford et al., 2010; Halbesleben, 2010; and Saks, 2006, as cited in Saks, 2022):

  • Attitudes
  • Behaviors
  • Performance
  • and, Well-being

Danna & Griffin (1999) as cited in Hauff (2022) define employee well-being as being multi-dimensional, encompassing positive and negative experiences of pleasure, displeasure, and health at work in job satisfaction, employee engagement, and various aspects of overall health.

Huettermann & Bruch (2019) found that what benefits employees, benefits the organization.

Attend to employee engagement and you'll be attending to the attitudes, behaviors, performance, and well-being of your employees.

2️⃣ Organizational Financial Performance Is Enhanced.

small business financial performance
small business accounting checklist

Whether you measure financial performance in terms of cost-cutting, revenue generation, or both, these are among the benefits of employee engagement.

Adarsh & B (2017) found that initial investments in improving the quality of service provided by employees through training and upgrades to technology might reflect unfavorably at first glance in the short-term as the impacts of this organizational focus present more significantly in the long-term.

In other words, patience, investment, and consistent commitment to employee engagement strategy are the ingredients necessary for positive results to be had.

3️⃣ Your Company Will Earn Competitive Advantage.

glass chess board

Gratton (2000) as cited in Burlacu & Mura (2019) suggests that the focus of leaders on supporting rarity, value, and inimitability enhances employee engagement, leading to improved firm performance, when sustained can lead to advantage over one's industry competitors.

What Are These 3 Areas?

  • Rarity - some form of innovation, organizational knowledge sharing, or proprietary element exists that is unique to your company.
  • Value - there is impact to the revenues, through sales, speed to market, or other area.
  • Inimitability - competitors might find difficulty in duplicating your organization's results whether because of their lack of innovation, personnel, or culture, or because of your protections of process.

Attend to the foundation and as employee engagement improves, so too will your pace and success beyond that of your competitors.

The Benefits Of Employee Engagement In Review.

Here's the shortened version of your benefits of employee engagement. Plan your organizational focus on supporting employee engagement and you'll find:

  1. Improved employee well-being
  2. Enhanced financial impact
  3. Advanced competitive advantage

Need An Employee Engagement Plan? I Can Help.

Each week, I schedule time to meet with leaders who want more engaged employees who:

✔️ Show up feeling strong of mind and body

✔️ Contribute ideas that support organizational goal achievement

✔️ Develop a culture that leads to competitive advantage

If that's true of you and your organization, let's talk.

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In health,

David Bohmiller

David Bohmiller, MBA, MS (he/him/his)
Founder, CEO and Consulting Executive
Inevitabl LLC

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Adarsh, A., & B., R. K. (2017). Employee Engagement, Customer Engagement and Financial Performance. CLEAR International Journal of Research in Commerce & Management, 8(9), 83-87.

Burlacu, N., & Mura, I. (2019). Employee Engagement Strategies Concerning Competitive Advantage Achieving. Ovidius University Annals, Series Economic Sciences, 19(1), 381-388.

Disengaged Employees Result in Lower Productivity, Gallup Report Says. (2018). Professional Safety, 63(2), 17.

Hauff, S., Felfe, J., & Klug, K. (2022). High-performance Work Practices, Employee Well-Being, and Supportive Leadership: Spillover Mechanisms and Boundary Conditions Between HRM and Leadership Behavior. International Journal of Human Resource Management, 33(10), 2109-2137.

Huettermann, H., & Bruch, H. (2019). Mutual Gains? Health-Related HRM, Collective Well-Being and Organizational Performance. Journal of Management Studies, 56(6), 1045-1072.

Pokorny, M. (2013). Getting to Know Your Employees and What Motivates Them. Employment Relations Today (Wiley), 39(4), 45-52.

Saks, A. M. (2022). Caring Human Resources Management and Employee Engagement. Human Resources Management Review, 32(3), 1-15.

Woodruffe, C. (2006). The Crucial Importance of Employee Engagement. Human Resource Management International Digest, 14(1), 3-5.

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