👩‍💻 How to Boost Business Performance through Employee Engagement

Employee engagement is an approach made by a workplace to its employees, which focuses on how connected, motivated and involved people feel within their roles at a company. It’s a two-way commitment and communication between an organisation and its members, which is based on trust and care. The idea is that if a company’s employees feel engaged at work, it will increase the chances of business success, better results and genuine hard work. It’s meant to drive ideas and inspire others. An engaged organisation will usually have strong and authentic values, which are lived by every day. There’s a mutual respect and trust built between employers and employees where both ends expect the other to fulfil their commitments and promises.

In today’s climate, employee engagement is more important than ever. Firstly, people aren’t always willing to work in a job where they don’t feel valued, listened to or trusted, and secondly, it has become vital for real business success. An organisation is only as strong as its employees.

The link between engagement and performance

It’s no secret that better engagement = better performance. When employees are engaged at work, they are more motivated, focused and connected to their work, which directly boosts business performance.

Engaged employees tend to:

Have higher productivity and are more invested in their tasks and goals. Studies show that they can be up to 21% more productive than disengaged colleagues.

Better retention. People who feel valued and connected to their work are far less likely to leave. This reduces recruitment costs and preserves company knowledge.

More innovation. Engaged teams are more likely to contribute ideas, challenge the norm and drive change, which are crucial for business development.

Improved customer experience. Happy, motivated employees create better customer experiences – leading to higher satisfaction, loyalty, and revenue.

Lower Absenteeism. Engagement reduces stress and burnout, leading to fewer sick days and more consistent performance.

In the long run, disengaged employees can actually lead to more costs for the business. This could be because they often put in the bare minimum effort, leading to reduced output and slower progress on projects. They are also more likely to call in sick or mentally check out, which can lead to poorer customer service and impact team performance or morale. Most importantly, disengagement spreads. One demotivated team member can affect the energy of those around them. The last thing you want as a business is to create a toxic ripple effect, which creates wider cultural issues.

So what drives employee engagement?

Clear communication

Clear communication is essential for driving employee engagement because it builds trust, creates alignment of goals, and stimulates a sense of purpose. When people understand what’s expected of them, how their work contributes to wider goals, and feel heard in return, they’re more likely to feel motivated, connected and valued. It reduces confusion, empowers ownership, and strengthens the relationship between teams and leadership – making employees more invested in their work and the success of the business.

Recognition and purpose

Recognition and purpose are powerful drivers of employee engagement because they tap into two fundamental human needs: feeling valued and feeling meaningful. When employees are recognised for their efforts, whether through praise, feedback, or rewards, they feel seen, appreciated, and motivated to keep performing at a high level. It reinforces a sense of contribution and encourages a positive, productive culture.

At the same time, when people understand the purpose behind their work, how it connects to the organisation’s mission or impacts others, they’re more emotionally invested. Purpose gives everyday tasks meaning, turning “just a job” into something they care about.

Learning and development

Learning and Development drive employee engagement because they show your people that you’re invested in their growth – not just their output. When employees are given opportunities to upskill, explore new areas, or advance their careers, they feel more valued and connected to the organisation’s future. L&D also keeps work stimulating and prevents stagnation. Engaged employees thrive when they’re challenged and supported to improve. It builds confidence, boosts morale, and encourages long-term commitment.

Strong leadership

Strong Leadership sets the tone for trust, clarity, and purpose across the entire organisation. When leaders are visible and communicative, employees feel more supported and motivated in their roles. Good leaders inspire belief in the company’s direction, recognise team contributions, and create an environment where people feel empowered to do their best work. They lead by example and help individuals see how their work contributes to the bigger picture.

Inclusive and positive culture

An inclusive and positive culture makes people feel safe, respected and valued for who they are. When individuals can bring their whole selves to work, without fear of bias or exclusion, they’re more likely to contribute fully and stay committed to the business. A positive culture that celebrates diversity creates an environment where people genuinely want to be. Showing that you care about people’s identity proves you don’t just see them as a number; you value their ideas and respect their decisions.

How events and comms play a role

Hosting events and utilising creative communications is a really great way to enforce employee engagement. Internal comms campaigns can make sometimes boring and repetitive information seem more fun and engaging, and also can easily be rolled out through the whole business to create consistency between employees. Events and live experiences help build connections beyond the computer screen. Offering a space where employees can really connect with each other and learn about different areas of the business can encourage better understanding and, therefore, better performance. It’s also a great way to offer recognition to employees through awards or reward systems.

Practical tips for boosting engagement

Run regular feedback loops

Give your employees a platform to give their own feedback on their experience in the workplace. This allows employees to feel seen, heard and valued for their opinions. It’s also taking information directly from the source; you’ll get the most accurate representation of employee engagement from the employees themselves. Make sure to gather feedback from a range of employees, especially from a variety of levels, as their experiences could be vastly different from each other.

Celebrate wins publicly

Offering recognition to employees is so important to maintain motivation, commitment and boost morale. Everyone likes to be told they’re doing something well, so making an effort to recognise this, and publicly, is a great way to engage employees. It can also inspire others in the business to work harder in order to receive the same recognition.

Involve employees in decisions

Involving employees in decision-making is a powerful way to boost engagement because it shows trust, values their perspective and gives them a sense of ownership. When people are invited to contribute ideas and feedback, they feel more connected to the outcomes and more invested in the organisation’s success.

Create moments of shared experience

As mentioned, creating spaces for shared experiences, such as events, is a really effective way of engaging your employees. It facilitates a space where people can form better connections, learn new initiatives and come together as a team to create better outcomes.

When people feel valued, connected and supported, they bring more energy, ideas and commitment to their work, which directly fuels productivity, innovation and growth. On the flip side, disengagement doesn’t just hurt morale – it creates cultural and financial costs that ripple across the whole organisation.

By prioritising clear communication, recognition, leadership, learning opportunities and inclusive culture, businesses can create workplaces where employees genuinely want to thrive. And with the right mix of creative communications and meaningful live experiences, you can bring those values to life in ways that resonate deeply with your people.

The result? A stronger, more motivated workforce – and a business that’s built for long-term success.