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Does employee engagement improve business performance?

Luke Kreitner
7/27/23 8:00 AM

Employee engagement is crucial to any company's success. But why, you may ask? Engaged employees are not only more productive and satisfied with their jobs, but they can also lead to improved financial performance, customer satisfaction, and employee retention.

In fact, a Forbes study found that highly engaged teams show 21% greater profitability. And those in the top 20% of employee engagement experience a reduction of absenteeism by 41% and a reduction of turnover by 59%. Talk about impressive statistics!

But wait, there's more! Disengaged employees cost U.S. companies up to $550 billion a year. That's right, billion with a "B". So, it's crucial for companies to invest in methods to measure and improve employee engagement such as employee feedback tools, increased communication, and employee recognition.

But we can't forget about the employees themselves. With 61% of employees admitting to feeling burned out, it's important for companies to prioritize and foster a performance culture that doesn't lead to overworking. 

When organizations can keep their employees engaged and energized without pushing them to burnout, they have found the key to long-term high performance.

In the end, employee engagement isn't just about making more money (although that is a nice perk). It's about creating a work environment where employees can thrive, develop their skills, and feel fulfilled in their roles.


High levels of employee engagement lead to better business performance. Engagement matters because it helps companies achieve more with what they have which can boost their competitive advantage in their industry. Engaged employees bring more to the table than those who are disengaged. Knowing how to maximize that value can make a huge difference for companies in today’s competitive landscape.


Check out our recognition and rewards platform which provides organizations of all sizes with simple, customizable solutions to engage and inspire employees to perform their best.

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