Building a Culture of Commitment: Why Employee Engagement is Important

Employee engagement has become a non-negotiable for modern organizations, but what exactly makes it so vital?

At its core, engagement is about more than job satisfaction — it’s the emotional and mental investment employees make in their work. According to a comprehensive Gallup study involving 2.7 million employees across various organizations, there is a clear link between employee engagement and key performance outcomes. For example, Gallup’s findings show that highly engaged teams led to significant improvements in profitability, productivity, and the overall well-being of employees.

On the flip side, disengaged employees are costly. According to Gallup’s State of the Global Workplace: 2023 Report, disengaged employees cost the world $8.8 trillion in lost productivity (that’s equal to 9% of global GDP). If you don’t want to contribute to the trillion-dollar workplace problem, then we suggest that you read on!

In this article, we unpack the tangible benefits of employee engagement and explore strategies to cultivate it. With the right approach, businesses can build a more resilient, high-performing, and high-profiting workforce. Let’s dive in!

Addressing Key Employee Engagement Factors

The only way to answer why employee engagement is important is by underlining the importance of first evaluating it in your workplace. 

There are many benefits of employee engagement, however, when evaluating whether or not your company is an engaged workforce, there are certain concerns you’ll want to look out for and address if needed.

Organizations often face obstacles such as low morale, lack of recognition, unclear communication, and limited career development opportunities. If this sounds familiar, you don’t need us to tell you that these concerns can lead to disengagement, decreased productivity, and higher turnover rates.

Understanding these key engaged employee concerns is the first step toward creating a more supportive and motivating work environment. By identifying and addressing these issues head-on, companies not only have the potential to improve employee engagement, they can also implement more effective strategies that foster a culture of recognition, improve team morale, and ultimately drive better performance. 

Below we’ve shared some important factors that influence whether or not your employees are engaged in work and how platforms like Applauz can help resolve them through thoughtful employee recognition and feedback.

The impact of remote work

According to the U.S. Bureau of Labor Statistics, 1 in 5 workers are working remotely as of 2024. While 16% of companies operate fully remote, a whopping 98% of workers say they want to work remotely, at least some of the time. 

However, this shift to remote work has become a double-edged sword for modern workplaces. On one hand, remote work can boost engagement for some employees by offering flexibility, autonomy, and a better work-life balance. On the other hand, it can also lead to isolation, miscommunication, or a lack of connection with the company culture if not managed properly. 

Several challenges can influence remote employee engagement statistics such as communication challenges, a lack of collaboration, personal distractions, technology hurdles, an unhealthy work-life balance, and feelings of isolation. 

So how do you maintain employee engagement and collaboration in virtual environments? Some helpful employee engagement strategies for remote workers: 

• Foster open communication: Use regular check-ins, video meetings, and instant messaging platforms like Slack or Microsoft Teams to keep communication clear and consistent. 
• Provide recognition & rewards: Acknowledge achievements publicly and often to make remote employees feel valued and appreciated. Consider offering incentives or rewards for employees to recognize their peers or leadership.
• Encourage employees with a healthy work-life balance: Let your team know you respect boundaries to help prevent burnout and promote schedule flexibility.
• Offer professional development: Provide access to online training, workshops, and growth opportunities to keep employees motivated and excited about their jobs.
• Build virtual team connections: Organize virtual social events, team-building activities, or informal chat groups to strengthen team relationships. 
• Equip employees with the right tools: Remote workers don’t have access to the IT department so make sure your employees have the equipment and collaboration tools they need for success. 

Work-life balance

Employees’ well-being, productivity, and overall job satisfaction is all connected to a healthy work-life balance, which is a key employee engagement concern if you want a team of satisfied employees.

If you’re noticing that your employees seem stressed, burned out, or disengaged, there’s a high possibility that they may be struggling to balance their professional and personal lives. Conversely, a healthy work-life balance is marked by job satisfaction, loyalty, and a higher level of employee engagement. 

The difference between a healthy and an unhealthy work-life balance all comes down to whether or not employees feel their time and well-being are respected. 

Fortunately, HR managers can take several steps to promote a healthy work-life balance. For example, a clear boundary between work and personal time should be established by encouraging employees to disconnect after work hours.

Companies with robust health and well-being programs report up to a 21% increase in job performance. Flexible work schedules, access to mental health resources, and remote work or hybrid options can also improve overall employee well-being. 

Purpose and meaning

A shift in workplace demographics has ushered in an era where having a sense of purpose and meaning at work is ever more important. According to Deloitte’s 2024 Gen Z and Millennial Survey, the majority of Gen Zs (86%) and millennials (89%) say that having a sense of purpose is important to their overall job satisfaction and well-being.

Millennials currently dominate the workforce and Gen Z is not far behind (making up about 30% of the full-time workforce and even overtaking Boomers). This means that workplace expectations are changing and this new generation of employees is willing to reject employers who don’t align with their values.

If employees feel that their roles contribute to broader organizational or societal goals, they tend to represent engaged employees who feel more motivated and committed to their company. 

While purpose is subjective, HR managers can help foster a sense of purpose and meaning by clearly aligning individual roles with the company’s mission and regularly sharing how employees' work impacts the organization. For example, showing a customer support team how their interactions directly enhance the customer experience can be a great way to build a more loyal employee ecosystem.

Offering personal development opportunities — such as mentorship programs — or volunteer opportunities can also help employees grow in meaningful ways. For example, Salesforce increases employee engagement by offering employees seven paid days off annually to volunteer for causes they care about.

Ultimately, recognizing and celebrating employees' contributions reinforces the value they bring to the company’s purpose.

Recognition and appreciation

Recognition and appreciation make employees feel valued and motivated, which can improve employee engagement. When employees’ efforts are acknowledged, it boosts morale, encourages high performance, and fosters loyalty. Lack of recognition, however, can lead to disengagement and high turnover.

While a pay raise or job promotion may be the most universally accepted form of recognition, it’s not the only way to show employees that their efforts are appreciated. Plus, you want to set up a system that provides consistent recognition (not just during a review period).

HR managers can enhance recognition by implementing formal programs with an employee recognition and rewards platform like Applauz. Among many employee engagement-boosting features, Applauz offers point and badge incentives for acts of recognition that ultimately unlock a marketplace of rewards. 

Recognition platforms like Applauz are a useful tool in an organization’s toolkit because they encourage consistent recognition, foster an environment of engaged employees, and offer a measurable record of recognition and appreciation. 

Check out Applauz to learn more about how you can recognize and engage employees. 

Leadership and culture

Leadership and culture are key drivers of employee engagement because they shape the work environment and set the tone for how employees feel within the organization. Effective leadership fosters trust, communication, and alignment with company values, all of which enhance engagement. 

Put simply: The stronger and more positive your work culture is, the higher the collaboration and a sense of belonging.

Some strategies for enhancing a positive leadership environment include encouraging leaders to model healthy work habits—like taking breaks and disconnecting after hours. Additionally, HR can promote well-being initiatives, such as flexible hours or wellness programs, to create a culture that values professional and personal well-being.

Technology and tools

Having the right technology and tools to do the job directly impacts employee productivity, efficiency, and overall job satisfaction. Outdated or inefficient tools can lead to frustration and disengagement, while access to reliable, user-friendly technology empowers employees to perform at their best.

HR managers can foster work-life balance by providing employees with remote work tools, like video conferencing and employee engagement software, ensuring smooth collaboration from any location. Additionally, offering tech support and training helps employees feel confident using these tools. Promoting automation for routine tasks can also reduce workload, allowing employees to focus on meaningful work and maintain balance.

The Connection Between Employee Engagement and Company Culture

A positive, inclusive culture fosters a sense of belonging, purpose, and motivation, which in turn drives higher engagement. 

When employees feel aligned with an organization’s values and goals, they’re more likely to be committed, productive, and emotionally invested in their work. 

On the flip side, disengagement can erode the culture of a workplace, leading to lower morale, collaboration, and overall performance.

Leadership plays a crucial role in the connection between employee engagement and work culture. Leaders set the tone for what is valued and how employees are treated. Transparent communication, recognition, and support from leadership create a trust-filled environment that fosters engagement. 

When leaders actively promote a culture that aligns with their employees’ needs and values, it strengthens both the organizational culture and employee engagement.

At the end of the day, when it comes to culture and employee engagement, one is always influencing the other. 

Why an Employee Engagement Survey is Important

If you don’t measure engagement, how do you know where you stand as an organization? 

Regular employee engagement surveys provide valuable insights into employee satisfaction, motivation, and areas for improvement — that’s why employee engagement surveys are important.

Employee engagement surveys help organizations identify potential issues, like burnout or job dissatisfaction. To conduct employee engagement surveys means that you're showing your employees that their opinions are valued, fostering an environment of trust and open communication. 

Four levels of engagement can be measured by employee surveys: 

• Cognitive engagement represents an employee's mental investment in their work. 
• Emotional engagement represents an employee’s passion for their work. 
• Physical engagement represents an employee’s physical presence and energy levels at work.
• Social engagement represents an employee’s interest in building relationships within the workplace. 

Some key benefits of employee engagement surveys include the ability to: 

• Measure the effectiveness of employee engagement initiatives,
• Use survey data to evaluate if certain employee engagement levels could use more attention,
• Use survey data to drive targeted improvements, and boost overall morale. 

The Role Recognition Plays in Boosting Employee Engagement

Each form of recognition reinforces positive behaviors, builds trust, and fosters a sense of belonging. On a psychological level, recognition taps into fundamental human needs for validation and appreciation, which increases motivation and commitment. Some types of recognition in the workplace include: 

• Peer-to-peer recognition: Employees acknowledge each other’s contributions.
• Manager-to-employee recognition: Leaders offer praise and acknowledgment for exceptional work.
• Organizational recognition: Highlights employee achievements at a company-wide level.

In the end, though, when engaged workers feel valued and validated for their work, they’re more likely to be productive and loyal to the organization. 

For example, research indicates that 50-70% of an employee's perception of their work experience is shaped by their direct manager. This means that even small gestures of recognition from leadership can have a significant impact on employee morale and engagement. 

Recognition platforms like Applauz systematize recognition efforts by providing an accessible, transparent way for employees and managers to celebrate achievements. The Applauz platform offers a space for continuous, real-time recognition, ensuring that an employee’s contributions are consistently acknowledged. By streamlining employee recognition, platforms have the power to enhance company success and culture, strengthen team bonds, and make recognition an integral part of everyday work life. 

Check out how Applauz can help your company recognize employees on a whole new level.

Implementing an Employee Engagement Strategy

Implementing an effective engagement strategy requires a thoughtful, data-driven approach. Surveys have the potential to track employee experience so start by assessing your organization’s current engagement levels through surveys, feedback sessions, and performance metrics. Identify key areas for improvement, such as recognition, communication, or professional development.

Once you have insights, set clear goals and tailor initiatives to address specific needs within an effective engagement strategy. This strategy should address components including clear communication, recognition tactics, and an overall effort to encourage work-life balance:

• Clear communication including regular feedback, and opportunities for growth and development.
• Recognition programs to highlight achievements. 
• A healthy work-life balance to prevent burnout. 

By combining these elements in your employee engagement strategy, you can create a supportive, motivating environment where employees feel valued.

Before rolling out your engagement program, make sure to start it off right with clear goals.

Here are some examples: 

• Increase employee recognition: Implement a system where 80% of employees are recognized for their contributions at least once per month, improving morale and motivation.
• Improve communication: Ensure that 90% of employees feel they have open, two-way communication with their managers by introducing regular one-on-one meetings or feedback loops.
• Enhance professional development: Offer quarterly training sessions, aiming for 75% of employees to participate in at least one program annually to foster growth and retention.
• Boost employee satisfaction: Achieve a 15% increase in employee satisfaction scores within six months by improving work-life balance and offering wellness programs.

These goals help make your employee engagement efforts tangible and trackable, ensuring progress over time.

Before starting your employee engagement program, it’s also important to involve leadership and managers in these efforts to ensure consistency and accountability. Your goal should be to ensure that the program aligns with your company values. 

Don’t forget that technology plays a vital role in supporting engagement initiatives. Tools like employee surveys, recognition platforms, and collaboration software help organizations gather feedback, recognize contributions, and keep teams connected, especially in remote or hybrid environments. 

Introducing a structured employee recognition platform, like Applauz, can boost morale and foster a sense of appreciation among employees, especially since Applauz makes it super easy to automate recognition and track engagement metrics.

Finally, you want to continuously monitor employee engagement through analytics and adjust strategies as needed. To maintain your engagement program, regularly gathering and analyzing employee feedback is crucial for making data-driven improvements. To sustain momentum, make sure to celebrate successes and continuously evolve the program based on employee input and changing needs. 

Remember, an ongoing commitment to employee engagement will lead to long-term improvements in productivity, retention, and workplace culture. 

Build Employee Engagement Excellence with Applauz 

Fostering employee engagement is crucial for creating a thriving workplace where individuals feel valued, motivated, and connected to your organization’s mission. 

It’s been proven that highly engaged employees are more productive, innovative, and committed. This is especially important because high employee engagement levels directly impact the bottom line and cultivate a positive company culture. 

By capitalizing on the benefits of employee engagement, not only are you investing in employee satisfaction, but you’re also reducing turnover, improving customer satisfaction, and gaining a competitive edge.

To ensure your organization benefits from these outcomes, take the time to assess your current employee engagement strategies. Are your recognition programs meaningful? Do your employees feel heard and supported? If there’s room for improvement, now is the time to act. 

Platforms like Applauz make it easier to track the benefits of employee engagement and build stronger connections between teams and leadership. Start today by evaluating your initiatives, fostering open communication, and finding opportunities to elevate your organization’s employee engagement strategy for long-term success. If done with the right intention — and backed by the best tools — you’ll see the positive impact of employee engagement resonate throughout your entire company. 

Ready to build and maintain a workforce of engaged employees? Incentivize recognition and watch your engagement strategy skyrocket with Applauz Recognition.