What are the Benefits of Good Employee Engagement?


[aa_subtitle_display]Do you know that only 32% of workers in U.S. are actively engaged in their jobs?

Engagement and well-being are important for employee performance. You may be surprised to know that most organizations make the mistake of evaluating only engagement whereas others focus only on well-being. It is best when companies focus on both engagement and well-being.

Organizations may be able to benefit when they add well-being to their engagement programs. When companies focus just on the engagement processes they may miss opportunities to improve employee performance and productivity.

Real Benefits of Employee Engagement


Engaged employees are top performers of any organization, as they are willing to put in the extra effort to achieve organizational goals and objectives. Employees who are engaged have lower absenteeism and are motivated. This leads to increased productivity.

These employees are the real assets of the organization as they contribute towards the success of the entire team.

The more engaged the employee is the more efficient they become. They are also driven to succeed in whatever work they do. Research has proved that organizations with higher levels of engagement are 43% more productive than organizations that have low levels of engagement.

Job Satisfaction

Research proves that if employees are more engaged with the organizations their level of job satisfaction increases significantly. Engaged employees are satisfied with their job and choose to invest in the success of the business.

These employees have a high level of loyalty and commitment towards the organization.

When employees are satisfied with their jobs they tend to play a key role in the organization. They become ambassadors of the company and actively promote the brand, mission and strategy of the organization.

Recruitment and Retention

Retaining good employees is important for the success of any organization. Engaged employees lower the risk of turnover for the company. Recruiting and training new employees is costly and organizations may be able to reduce this cost when they actively engage with their existing employees.

When employees are engaged they are most likely to stay put with the organization, as they have become more loyal. Organizations that have engaged employees may also be able to attract good and qualified recruits for various positions. The employees may recommend the organization to friends and relatives and the positive word-of-mouth can help attract talent.


Organizations that have highly engaged employees tend to have higher profitability levels. When employees are engaged they become more efficient and productive and this can have a positive effect on the bottom line of the business.

A study has found that companies that have highly engaged employees see 26% higher revenue per employee. Apart from becoming more efficient and productive, engaged employees help lower operating costs. This can positively impact the profit margin of the business.

If you want the employee engagement initiatives to be successful, you need to tailor them to the unique needs of the organization. Companies can create an environment that fosters engagement by making use of PEO tools and techniques. This can help companies experience all the benefits that engagement offers in a cost effective manner.