[Part 1] Why Is Employee Engagement Important?

Gallup’s workplace engagement data show that engaged employees drive stronger business outcomes across every industry, regardless of company size or economic conditions.

Engaging Employees Leads To:

  • higher productivity and profitability
  • lower absenteeism and turnover
  • fewer safety incidents and quality defects
  • stronger customer loyalty

These outcomes are based on decades of research across industries and organizations worldwide. When comparing the most engaged teams to the least engaged, Gallup research reveals the clear benefits of employee engagement:

What Highly Engaged Employees Achieve More Of:

  • 10% higher customer loyalty/engagement
  • 14% higher productivity (production records and evaluations)
  • 18% higher productivity (sales)
  • 23% higher profitability
  • 70% higher wellbeing (net thriving employees)
  • 22% higher organizational citizenship (participation)

What Highly Engaged Employees Achieve Less Of:

  • 78% less absenteeism
  • 21% less turnover for high-turnover organizations
  • 51% less turnover for low-turnover organizations
  • 28% less shrinkage (theft)
  • 63% fewer safety incidents (accidents)
  • 32% fewer quality defects

*The above figures are median percent differences across companies in Gallup’s database. High-turnover organizations are those with more than 40% annualized turnover. Low-turnover organizations are those with 40% or lower annualized turnover.

What Are the Drivers of Employee Engagement?

Gallup identifies five essential elements that consistently drive engagement. Above all, Employee engagement grows when people feel connected to their work, valued for their strengths and supported by great managers.

Key Drivers Of Employee Engagement Include:

Purpose — Doing work that feels meaningful and mission-driven

Development — Having opportunities to learn and grow

Caring managers — Feeling supported by someone who genuinely cares

Ongoing conversations — Receiving consistent feedback and coaching

Focus on strengths — Being encouraged to use what you do best every day

Source: Gallup

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