Engagement and Motivation: The Keys to Organizational Success

Dec 21, 2023 | Employee Engagement, HR Trends

Employee engagement and motivation are more than HR buzzwords—they are the pillars of organizational success. Engaged employees feel deeply invested in their company’s vision and play a critical role in driving its objectives forward. They aren’t just satisfied with their jobs; they take their organization to the next level by continuously enhancing their contributions. Meanwhile, when employees lack engagement, the company will suffer in numerous ways, from low productivity to high turnover.

In this post, we’ll explore the intricate interplay between employee engagement, motivation, and organizational outcomes. We’ll then discuss actionable strategies for fostering a culture where motivated employees thrive, looking at real-world examples highlighting the transformative power of genuine engagement. Here you’ll discover the blueprint to harnessing the full potential of your workforce and ensuring sustainable organizational success.

Table of Contents

1. The Transformative Power of Engagement

2. Strategies for Fostering a Motivated and Engaged Culture

The Transformative Power of Engagement

Engaged employees having a meeting
Credit: RDNE Stock project/Pexels

How can we conceptualize engagement? In a nutshell, engagement describes employees’ level of commitment to their organization, ability to identify with their company, job satisfaction, and level of energy in their work.

A lack of employee engagement has serious implications for a company’s success:

  • Decreased productivity
  • High turnover
  • Lower quality of results
  • Diminished workplace morale 
  • Poor workplace relationships
  • Higher prevalence of safety incidents
  • Loss of profits and competitive advantage

Companies with high engagement can have 43% less turnover than those with low engagement. On the individual level, disengagement can result in frequent absenteeism, low energy, and a pessimistic attitude, contributing to these broader issues. According to Gallup, just 33% of U.S. employees (and 23% globally) are engaged. Meanwhile, 59% of people are just showing up—and 18% are actively disengaged. And those actively disengaged employees are 42% more likely to be actively looking for a new job. Disengagement increases stress at work, too, Gallup asserts.

This can mean that a disengaged employee loses 34% of their salary. However, organizations that follow best practices in motivating employees can reach 72% engagement. That’s a huge leap—and it can deliver a major competitive advantage.

The Many Benefits of Motivation and Engagement

Engagement plays a vital role in driving a company’s business strategy forward. “Not only does engagement have the potential to significantly affect employee retention, productivity, and loyalty, it is also a key link to customer satisfaction, company reputation, and overall stakeholder value,” says the Society for Human Resource Management (SHRM). “Increasingly, organizations are turning to HR to set the agenda for employee engagement and commitment to establish a competitive advantage.”

Engaged employees have a passion for learning and growing, SHRM emphasizes. They have an optimistic outlook that drives them to focus on solutions. They’re dedicated, team-oriented people who go above and beyond to help their organization excel. Additionally, they have higher levels of job satisfaction. As a result, organizations with high engagement have the following advantages over those with low engagement:

  • 81% lower absenteeism
  • 64% fewer safety incidents
  • 41% improvement in product quality
  • 23% higher profits
  • 18% higher productivity

Numerous studies have linked engagement to various dimensions of organizational success, from financial performance, increased productivity, and customer satisfaction to skill in carrying out tasks. Research has found that employee engagement significantly boosts energy and enthusiasm as well. Let’s examine a couple of case studies showing the benefits of increased engagement.

Real-World Success Stories

The beverage company Molson Coors found that employees with high engagement were five times less likely than disengaged employees to be involved in safety incidents, reports SHRM. And they were seven times less likely to experience safety incidents that resulted in lost work time. By increasing engagement, they reduced safety-related costs by $1,721,760 in a single year.

Caterpillar, the producer of construction equipment, saved $8.8 million annually by improving engagement at one European facility, SHRM adds. Retention advantages, reduced absenteeism, and the need for overtime work resulted in enhanced efficiency and cost savings.

What are some specific tactics that companies have used to enhance engagement? Salesforce boosts engagement through a commitment to giving back to the community. The company supports causes employees care about by offering paid volunteer time and matching donations. They also offer employee groups centred on common identities to promote equality and camaraderie in the workplace.

Hilton, which has ranked as the #1 on Fortune’s list of best places to work, pursues novel strategies for boosting engagement, Forbes notes. For example, it has an immersion program that allows senior leaders to work hand-in-hand with staff at hotels to learn about their challenges. This gives leaders firsthand insights on how to strengthen engagement. Plus, this program itself enhances motivation by connecting people at different levels.

Strategies for Fostering a Motivated and Engaged Culture

Employees working and fostering a motivated and engaged culture
Credit: fauxels/Pexels

Often managers don’t recognize the true drivers of engagement, say Daniel Stein, Nick Hobson, Jon M. Jachimowicz, and Ashley Whillans in Harvard Business Review. In turn, they fail to implement strategies that enhance employee motivation and engagement.

We’re going to delve into some actionable strategies that genuinely foster engagement throughout the workplace. Together, they form a roadmap for strengthening engagement, motivation, and organizational success.

Connect Employees’ Roles With What They Care About

Help employees find more meaning in their daily work. “Consider revamping job descriptions to connect an employee’s work directly to the organization’s mission, generating meaning and purpose,” say Stein and coauthors. Holding town halls and small-group discussions about how employees contribute to the organization’s purpose can also deepen their commitment, they note.

Leverage Transformational Leadership

Transformational leadership can dramatically improve employee motivation and engagement. Following these principles will allow you to cultivate transformational leadership in your work:

  • Inspire people with a compelling vision. 
  • Fill people with a belief in their abilities.
  • Tap into what naturally motivates people to do their best work.
  • Encourage innovative thinking and creativity.
  • Build strong bonds of trust with your team by acting with integrity.
  • Promote continuous learning and growth by coaching employees on a daily basis.

Transformational leaders help people discover the intrinsic rewards of their role, like the chance to build skills and do meaningful work. They empower people to take on greater responsibility, finding their own solutions to problems. In these ways, transformational leaders also nurture a positive work culture, which further enhances engagement.

Increase Their Autonomy

Stein and coauthors also found that enhancing autonomy bolsters engagement. For instance, they say, Netflix allows employees to make strategic choices without getting pre-approval from management. The company also allows for unlimited vacation time, which it doesn’t track. This increased autonomy reinforces trust and creativity, causing engagement to rise.

Strengthen Social Cohesion

According to SHRM, social cohesion is an important contributor to engagement. Having at least one close work friend strongly promotes engagement, Gallup notes. Social cohesion emerges from a strong work culture with healthy relationships, which increases workplace morale. When people have genuine friendships with their colleagues, they’ll feel more engaged and team performance will grow stronger. Holding work events like social lunches can create opportunities to build these ties.

Foster a People-First Culture

Creating a people-first culture means putting employees’ needs first. Because they feel truly valued as people, they become more driven to help their company excel. Offering generous benefits, time off, developmental support, and gratitude for their efforts all help shape this work culture.

Have at Least One Meaningful Conversation Per Week

Gallup advises “having one meaningful conversation with each employee once per week that focuses on recognition, collaboration, goals and priorities, and strengths.” These conversations can significantly bolster employee engagement. Managers should share frequent feedback throughout the week as well to help employees stay engaged.

Monitor Metrics Like Absenteeism

As mentioned above, engagement can lower absenteeism by as much as 81%. So, look to absenteeism as a barometer for engagement. If absenteeism is decreasing from the previous quarter, employees are likely becoming more engaged. 

Monitor concrete outcomes (like the percentage of KPIs and deadlines met) to assess motivation and engagement, too, says Gallup. Also, track participation in training programs and in group collaborations. Finally, survey employees on how meaningful they find their work and whether they would recommend your company to a friend (known as employee net promoter score).

Use Quality Software Solutions

Performance management solutions help employees stay focused on the right goals. Engagement rises as they track their own progress toward key benchmarks. You can also use feedback-sharing tools to offer constructive suggestions and praise.

Enhance Skill Variety Used on the Job

Employee motivation and engagement tend to rise as people practice a wider range of skills on the job. In fact, one study found that skill variety is the single biggest contributor to engagement. Using diverse skills makes work more interesting and intellectually challenging. Plus, it creates more opportunities to learn and allows people to discover their intrinsic interests, say Stein and coauthors. Consider rotating tasks or even roles to make work more varied and engaging.

Ask for Their Opinions

Knowing their opinions count serves as a key driver of engagement, Gallup says. Yet just 3 in 10 employees feel their opinions matter. Asking for employee input regularly will convey your belief in their ideas and boost engagement. 

As you implement these strategies, continuously measure engagement as well. Design surveys based on a clear definition of engagement. Decide on what you want to learn from the surveys, like key drivers of engagement or what would make work feel more meaningful. By gaining this clarity, you’ll get more relevant results, say Peter Cappelli and Liat Eldor in HBR. According to Gallup, asking about 12 specific points will help you assess engagement as accurately as possible. These points include receiving recognition and having someone who encourages an employee’s growth, among others.

By leveraging these strategies, you’ll enhance employee motivation and engagement—and, ultimately, organizational success. Fully motivated and engaged employees will become the superstars who secure your competitive advantage and allow you to adapt to change with agility and skill. By strengthening workplace morale, job satisfaction, and work culture, you’ll create an environment where employees can continue to grow and thrive.

Explore how software solutions can enhance your employees’ engagement and motivation. Demo our product.

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