If multiple studies and surveys are to be believed, employers are suffering an engagement problem—and there’s no end in sight. Concerns existed even before the pandemic brought upheaval to the workforce by making working from home the norm. That fundamental change didn’t go away when COVID eased, as whether to make everyone return to the office full-time is still a subject of debate. Also, work/life balance was a challenge even before the pandemic, and the stress of managing work along with nonwork responsibilities has only become more pronounced. So, what can employers do?
Defining Engagement
Global analytics and advisory firm Gallup defines employee engagement as “the involvement and enthusiasm of employees in their work and workplace.” By focusing on engagement, employers can improve their employees’ connection to their work and their employer, thereby avoiding burnout.
Gallup has identified certain key drivers of employee engagement. One is a sense of purpose, and another is opportunities for development. A caring manager is also key to engagement, as are ongoing conversations and a focus on strengths.
A report from Gallup says that in addition to purpose and meaning, employees also want relationships, especially with a manager who can coach them to the next level.
The report says one of Gallup’s biggest discoveries on engagement is that the manager or team leader accounts for 70% of the variance in team engagement.
What Employees Think
Engagement software provider Bonusly teamed up with human capital analyst firm Lighthouse Research & Advisory to produce a 2024 report titled “Recognition, Performance, and Impact: New Data on the Value of an Engaged Workforce.”
The report includes responses from 1,077 HR and talent decision-makers, as well as 1,000 workers from across North America. The surveys were gathered from December 2023 to January 2024 from employers in various industries and of various sizes.
The research found that the frequency of recognition affects employee engagement. Employees who feel appreciated or recognized on a regular basis are five times more likely to be engaged, according to the report.
“While recognition isn’t the only factor in someone’s level of engagement, it’s clearly a key contributor,” the report says. “That’s likely why 67% of employers use some form of employee recognition and rewards technology today.”
Researchers asked what practices make the biggest impact on improving employee engagement, and the top three responses were manager one-on-ones and check-ins, recognition and rewards, and performance management.
“What’s most compelling is the fact that each of these aspects ties in directly with how managers connect and support their people,” the report says.
Why Engagement Matters
The Bonusly and Lighthouse research also addressed why engagement matters to employers. The researchers found that engagement drives impact in three key areas: culture, people, and business performance.
The report notes that highly engaged workplaces see benefits in areas like employee productivity, reduced safety issues, employee retention, employee performance, customer satisfaction, product/service quality, shareholder value, and revenue and profitability.
In addition to finding that employee recognition leads to engagement, the research notes that recognizing employees also connects to company performance.
“While we can’t say that employee recognition is the only factor that drives revenue, it makes logical sense for them to be connected: Employees that get supported and appreciated are more likely to perform better on the job, and that ultimately rolls up into overall company performance,” the report says.
Manager’s Role
The Bonusly and Lighthouse research stresses the importance of effective managers, noting that supportive managers can more than double employee retention.
The report says that manager support affects many areas that are important to employees, including workplace flexibility, recognition of a job well done, goal-setting and communication, and an inclusive team environment.
Managers don’t make just a positive impact. “The impact of a leader that is ‘just going through the motions’ is just as powerful in a negative way,” the report says.
Employees were surveyed on the subject, and 77% of those saying their workplace culture is functional and supportive had no plans to quit, while just 44% of those planning to quit within six months said the same, illustrating the importance of supportive managers.
Tammy Binford is a contributing editor.