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How Employee Engagement Affects Productivity?

Wednesday, March 24, 2021
Author: Business Consultants, Inc.

How Employee Engagement Affects Productivity?

A recent study conducted by Harvard Business Review Analytic Services and sponsored by Quantum Workplace found that 92% of respondents agreed that highly engaged employees perform better and are more productive than employees with average or low engagement.1

In the same study, respondents have confidence in the business value of employee engagement. More than half (56%) agree their organization has achieved positive ROI from its investments in employee engagement.2

"Engagement equals discretionary effort, which equals higher business outcomes for the same amount of dollars. It is ROI at its finest - the best possible return on investment for your human capital."
Heather Whiteman, People Analytics Professor, Haas School Of Business, University Of California, Berkeley

Another study that surveyed 1,000 employed American adults showed that when people feel like they belong at work, they are more productive, motivated, engaged, and 3.5 times more likely to contribute to their fullest potential.3

Recent research from Betterup shows that if workers feel like they belong, companies reap substantial bottom-line benefits: better job performance, lower turnover risk, and fewer sick days. Experiments show that individuals coping with left-out feelings can prevent them by gaining perspective from others, mentoring those in a similar condition, and thinking of strategies for improving the situation.4

According to a new meta-analysis of 1.4 million employees conducted by the Gallup Organization organizations with a high level of engagement do report 22% higher productivity.

Employees who are engaged with their job and employer are more productive because they are motivated beyond personal factors. They are more focused and more motivated than their disengaged counterparts. This means they work more efficiently and with the success of the organization in mind.5

In 2012, Gallup conducted a meta-analysis using 263 research studies across 192 organizations in 49 industries and 34 countries. Within each study, Gallup researchers statistically calculated the work-unit-level relationship between employee engagement and performance outcomes that the organization supplied. Researchers studied 49,928 work units, including nearly 1.4 million employees. This meta-analysis further confirmed the well-established connection between employee engagement and nine performance outcomes:6

  • customer ratings 10%
  • profitability 22%
  • productivity 21%
  • turnover -25% in higher turnover industries, and -66% in lower turnover industries
  • safety incidents -48%
  • shrinkage (theft) -28%
  • absenteeism -37%
  • patient safety incidents -41%
  • quality (defects) -41%

This study shows beyond a reasonable doubt, that employee engagement is not only good for employees' wellbeing and satisfaction but also overall company performance and bottom line.

12020 Employee Engagement Trends Report How America’s Best Places to Work Engage & Retain Top Talent, accessed 2 Feb 2021, 2Quantum workplace 2020, Harvard Business Review Analytic services, accessed 2 Feb 2021
3Karyn Twaronite 2019, Harvard Business Review, accessed 2 Feb 2021,
4Evan W. Carr, Andrew Reece, Gabriella Rosen Kellerman, and Alexi Robichaux 2019, Harvard Business review, accessed 2 Feb 2021,
5Accessed 2 Feb 2021,
6Susan Sorenson 2013, Gallup, accessed 2 Feb 2021,

 

For more about this topic, download our latest book "Engage Your Employees in Valentine's Day" for FREE:

E-Book: Engage Your Employees in Valentine's Day

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