Employee engagement is the backbone of a company’s success. It reflects how involved and enthusiastic employees are about their jobs and workplace—when they are dedicated, they work better and produce more. Low engagement, however, costs the global economy $8.9 trillion, or 9% of global GDP by Gallup estimates.
High engagement sparks productivity, cuts turnover, and lifts business performance. But many companies struggle to keep it up, especially under pressure. That’s why we will look at the drivers of employee engagement with employee engagement statistics and strategies to strengthen it. To start, let’s define employee engagement.
What is employee engagement?
Employee engagement equals employee motivation plus the commitment to perform their work best. It’s not the same as employee happiness or employee job satisfaction. In this case, employee engagement means productivity specifically and a deeper connection to work, team, and organization overall.
Employee engagement is an employee’s involvement in their role and the goals a company aims to achieve.
Benefits of employee engagement
Engaged employees are more likely to show up, stay, and contribute, which translates to:
- Higher attendance rates, as engaged employees take fewer days off.
- Increased performance across teams.
- Stronger employee retention, especially in organizations with high turnover.
- Greater stability in low-turnover organizations, where engagement has an even stronger impact.
- More revenue for a company as, per the Gallup research, engaged teams are 23% more profitable than teams with low engagement.
What drives employee engagement?
Employee engagement is fueled by motivation and a sense of connection. Motivation, in particular, aligns with Dan Pink’s theory of autonomy, mastery, and purpose:
- Control over tasks and decision-making lead to better employee performance.
- Continuous learning and development opportunities keep employees engaged in the long term. Employees thrive when they do activities that offer growth in addition to matching their strengths. Research from Cambridge shows that confidence in achieving career objectives is one of the strongest drivers of employee engagement.
- Meaningful work and understanding how it contributes to organizational goals build up employee commitment. They can link personal meaning with broader impact.
In turn, a sense of belonging starts with trust in leadership and how they cultivate a positive workplace culture. Employees are more engaged when they see their leaders genuinely care about them. But only 28% strongly agree that leadership prioritizes their health and well-being, highlighting a critical gap that organizations need to address.
How to measure employee engagement?
According to the Gallup employee engagement statistics, 23% of employees globally are engaged, while 15% remain actively disengaged. Measuring employee engagement reveals how connected and motivated your workforce is. It’s not as simple as tracking turnover or performance, but the right approach gives a clear picture of engagement levels.
- Employee engagement surveys. The most direct way to measure engagement. Here, you can mix open-ended and scaled questions to get details. You can cover multiple aspects of the employee experience, including job satisfaction, leadership, culture, growth opportunities, and well-being, for example, “Do you feel a sense of purpose in your work?” or “Do you receive regular and constructive feedback from your manager?”.
- Net promoter score (eNPS). “How likely are you to recommend this company as a great place to work?” The score categorizes employees as promoters (9-10), passives (7-8), or detractors (0-6) and gives a numerical score to track overall mood.
- Absenteeism and turnover. High absenteeism and turnover are red flags. These metrics identify disengagement and problem areas that need attention.
- Focus groups and listening interviews. In addition to surveys, direct feedback from focus groups or interviews shows patterns in employees’ experiences. Focus groups surface broader themes while listening interviews reveal the personal stories behind them. Both are essential: groups highlight common challenges, and interviews provide depth. These discussions help uncover underlying issues because of interaction among participants that surveys may miss.
- Feedback culture. Encourage managers to regularly seek feedback from their teams. With two-way communication, employees feel heard and valued. The ongoing feedback loop brings to light difficulties, supports continuous improvement, and strengthens engagement by involving employees in decision-making and problem-solving.
Measuring employee engagement is like taking a pulse check on your workforce. Tools like employee surveys, eNPS, and turnover rates help you track engagement levels, while focus groups and interviews provide deeper insights. These methods give a clear picture of how employees feel, act, and connect with their work.
Improve employee engagement with Amy
Businesses with highly engaged teams see significant improvements in attendance, productivity, and retention. Cultivating a high level of employee engagement starts with meaningful development. Amy helps you get there. Our human potential platform connects employee development with business goals, making growth a natural part of work. With science-backed coaching, Amy equips leaders and teams with the skills to stay motivated, aligned, and productive. It plugs into your existing systems, offering personalized support that keeps employees challenged and committed.
When people feel valued and see their impact, engagement skyrockets. Improve employee engagement with Amy—where growth meets performance.