3 effective ways to improve employee engagement

The statistics around poor employee engagement within our workplaces have been raised by many industry commentators as a cause for concern.

Dr Peter Dry, an engagement and strengths-based leadership expert, is one such commentator, stating that the consequences of workplace disengagement are far-reaching and that there is an urgent need for organisations to address engagement issues and reclaim their financial potential.

What is employee engagement?

Employee engagement encompasses motivations and commitment to an organisation. It speaks directly to growth through enhanced productivity and job satisfaction, stronger talent retention rates and a sense of authentic purpose. Strategically, employee engagement is also a catalyst for greater innovation and creativity. In essence, it’s the secret ingredient that elevates a company’s performance to new heights.

Employee engagement might be considered a transformational value-added characteristic that sets a company apart in a fiercely competitive market. However, despite its transformative potential, creating an engaged workforce remains a formidable challenge. So, what steps do organisations need to take to improve employee engagement?

Why invest in employee engagement?

At its core, employee engagement revolves around cultivating a deep, personal connection between employees, their employers, and the work they do. This connection extends beyond practical work commitments, as it hinges on the tangible notion that an employee’s efforts directly contribute to personal growth, workplace improvements and organisational success.

According to the Experience is Everything report by PwC featured in Harvard Business Review, an organisation’s employee experience (EX) has been connected to how it delivers its customer experience (CX). Given changing workforce dynamics and the way technology makes it possible for companies, employees, and customers to stay connected, it’s time for leaders to recognise that EX is now the key driver of CX.

The engagement evidence is compelling

A sense of belonging not only fulfils employees’ fundamental needs but also serves as a source of inspiration for their work, ultimately leading to improved business outcomes. A study by prominent HR leader Qualtrics demonstrates a significant correlation between this sense of belonging and employee engagement.

According to its research, only 20 per cent of employees who do not feel a sense of belonging are engaged, whereas 91 per cent of those who do experience this sense of belonging are engaged. This striking difference is three and a half times more favouring employees who feel a strong sense of belonging.

According to the State of the Global Workplace: 2023 Report, a study by Gallup, only 21 per cent, or one in five employees, are truly engaged in their roles in Australian workplaces. This same research validates that half of the workforce has, at some stage, departed from a job either to remove themselves from their managers or to enhance their quality of life.

Considering these sobering statistics, why does the pursuit of an engaging work environment continue to be so challenging to find? Why do even the brightest of leaders sometimes falter when it comes to fostering engagement within their organisations? It is a highly complex challenge, but there are three fundamental building blocks that employers can employ to create workplace engagement. 

1. Provide clear communication

In both turbulent times and those of stability, clarity should be the North Star. Employees thrive when they have clear roles, defined responsibilities and a precise understanding of objectives. Ambiguity fosters speculation and disengagement; it makes employees feel insignificant and powerless.

2. Offer ongoing training and development

Employees are more inclined to stay and give their best when they sense growth. Offer practical training and development to nurture their skills. Organisations that implement this will not only boost productivity but also become a legendary figure in their eyes.

Today, digital tools have become an essential part of how people do their jobs, communicate and collaborate with their teams, learn job skills, and even receive recognition for their work. As organisations continue to upgrade and expand their technology infrastructures, they should deploy e-learning tools to ensure employees have all the skills and knowledge they need to be productive and grow in their careers.

3. Deliver authentic recognition

Organisations need to recognise and acknowledge exemplary work on a consistent basis because this is key to making employees feel valued. Yet, a TINYpulse report on employee engagement showed that only one-third of workers received recognition the last time they went above and beyond.

It is a great HR strategy to offer feedback regularly and address underperformance swiftly. An organisation’s ability to foster a culture of excellence through recognition will be pivotal in enhancing engagement and promoting a high-performance workplace.

Conclusion

Across the nation, employees are reshaping their relationship with work, from scrutinising pay and benefits and reclaiming work-life boundaries to seeking out organisations that actively demonstrate their values.

Ultimately, the path to improving employee engagement in Australian workplaces lies in these three foundational principles. By providing clarity, offering customised learning and development and delivering authentic recognition, organisations work towards the goal of having a more engaged and inspired workforce. This is the path to not only unlocking higher productivity but also to forge a lasting bond with their employees that will set organisations apart in a very competitive market.

Tony Maguire is the regional director for Australia and New Zealand at D2L.