Does employee engagement improve business performance?


Yes, employee engagement does have a positive impact on improving business performance. According to Forbes, highly engaged teams show 21% greater profitability. Not only that, those who score in the top 20% of employee engagement experience a reduction of absenteeism of 41% and a reduction in turnover of 59%.

We know engaged employees are more productive, have better morale, and are more likely to stay with the company, which can lead to lower turnover and recruitment costs. They also have a positive impact on customer satisfaction, which can lead to increased sales and revenue long-term. 

What employee engagement means in 2023

McLean & Company defines employee engagement as “an overall sense of being energized by and passionate about one”s work and dedication toward one’s workplace”.

In 2023, employee engagement is likely to continue to be an important concept for employers, as engaged employees are more productive, motivated, and satisfied with their jobs. Companies may use various methods to measure and improve employee engagement, such as employee feedback tools, employee surveys, increased communication, and employee recognition. 

Why employee engagement is important 

Employee engagement is essential for a company’s overall success and growth. It touches every aspect of the business from onboarding, hiring, and reputation to financial performance, retention, and productivity.  Disengaged employees cost U.S. companies up to $550 billion a year. With that being said, if a company only cared about its ability to make money, and nothing else, it would want to incorporate employee engagement initiatives into its performance strategy. 

Employee engagement and business performance 

A crucial factor in business performance is employee engagement. Companies with engaged employees have better financial performance, increased productivity and customer satisfaction, improved safety, and employee retention. 

With 61% of employees saying they’re burned out, organizations need to do everything in their power to continue to foster a performance culture that doesn’t lead to overworking. This can be achieved by enabling employees to put time into improving their well-being at work and at home. When organizations can keep their employees engaged without pushing them to burnout, they have found the secret sauce to long-term high performance. 


High levels of employee engagement lead to better business performance. Engagement matters because it helps companies achieve more with what they have which can boost their competitive advantage in their industry. Engaged employees bring more to the table than those who are disengaged. Knowing how to maximize that value can make a huge difference for companies in today’s competitive landscape.

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