How employee engagement rate is affecting your business

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Executive Summary

What is employee engagement?
The current state of employee engagement
Benefits of high employee engagement
Consequences of low employee engagement
Measuring employee engagement
Strategies to improve employee engagement
How technology can help foster positive employee engagement

Employee engagement is a critical aspect of any successful enterprise or business. It is the emotional commitment an employee has towards their organization and its goals. This commitment means engaged employees care about their work and company.

Understanding how employee engagement impacts business outcomes is essential for fostering a productive and positive work environment. High engagement levels from your staff can lead to increased productivity, better customer satisfaction, and higher retention rates, while low engagement can have detrimental effects on the business.

Mastering how to improve employee engagement is crucial for success.

What is employee engagement?

Employee engagement is the degree to which employees are motivated to contribute to organizational success and are willing to apply discretionary effort to accomplish tasks important to the achievement of organizational goals.

Key components that contribute to high employee engagement include clear communication, personal recognition, professional growth opportunities, and a healthy work-life balance. When employees feel valued and supported, they are more likely to be engaged in their work.

The current state of employee engagement

There is room for improvement. A recent Gallup survey found that only 33% of US workers were engaged at work. This lack of engagement equates to about $1.9 trillion in lost productivity.

It is worth bearing in mind that every percentage drop in employee engagement rates equates to the equivalent of 1.6 million US part-time or full-time workers. The impact of employee engagement on a business’s productivity is, clearly, significant.

Benefits of high employee engagement

The benefits of can be summarized as follows:

Increased productivity: engaged employees are more productive because they are motivated and committed to their work. Your staff will put in extra effort, which leads to higher output and better performance.

Lower employee turnover: high engagement reduces employee turnover. Engaged employees are less likely to leave their jobs, which saves the company significant costs associated with recruiting and training new staff.

Enhanced customer satisfaction: there is a strong correlation between employee engagement and customer satisfaction. Engaged employees are more likely to provide exceptional customer service, leading to increased customer loyalty and positive reviews.

Innovation and creativity: An engaged workforce is more likely to contribute innovative ideas and solutions. Their commitment to the company’s success drives them to think creatively and push boundaries.

Consequences of low employee engagement

Low employee engagement can have significant negative consequences for your business and seriously impact your organization’s ability to achieve its objectives. It can also have a detrimental impact on your company’s levels of customer satisfaction:

Reduced productivity: disengaged employees tend to do the bare minimum required. This lack of motivation leads to lower productivity and can affect the overall performance of the team.

Higher absenteeism: disengaged employees are more likely to take unplanned leave, leading to higher absenteeism rates. This can disrupt workflows and place additional burdens on other team members, leading to additional pressures amongst your workforce.

Poor customer experience: when employees are disengaged, their lack of enthusiasm and commitment can negatively impact customer interactions. This often results in poor customer service and can damage the company’s reputation.

Increased costs: low engagement can lead to higher costs due to increased turnover, absenteeism, and lower productivity. The financial implications of replacing disengaged employees and managing their poor performance can be significant.

Measuring employee engagement

Measuring employee engagement is crucial for identifying areas of improvement and implementing effective strategies. Common methods include:

Surveys: regular staff engagement surveys can provide insights into employee satisfaction and highlight specific issues that need to be addressed.

Feedback mechanisms: implementing feedback systems where employees can voice their concerns and suggestions can help management understand their needs better.

Performance metrics: tracking performance metrics such as productivity, absenteeism, and turnover rates can also indicate levels of employee engagement within a business.

Strategies to improve employee engagement

Clear communication: effective and transparent communication within your organization helps build trust and ensures employees are aligned with the company’s goals.

Recognition and rewards: recognizing and rewarding employees for their hard work and achievements can boost the morale of your workforce and motivate it to maintain high performance.

Professional development: providing opportunities for professional growth and development shows employees that the company is invested in their future.

Work-Life balance: supporting work-life balance through flexible work arrangements and promoting a healthy work environment can significantly enhance employee engagement across your entire workforce.

How technology can help foster positive employee engagement

At NFS we have developed a market leading workplace experience platform, Rendezvous, which offers wonderful features that help foster great employee engagement:

Mobile-first technology: to help staff on their flexible working journey we provide a choice of mobile apps for meeting management to enable your staff to efficiently book desks, workspaces and manage meeting rooms on their own terms.

Colleague search: the colleague search feature enables staff to quickly locate their team mates and plan their working day. It is a great enabler of staff collaboration and for Gen Z employees it empowers them to capitalize on important mentoring opportunities.

Outlook integration: the Rendezvous software platform integrates fully with Microsoft Outlook, Office 365 and MS Exchange. All desk and room bookings are entered straight into the staff member’s calendar – great for productivity – and it also has a powerful new add-in which enables staff to book and schedule meeting rooms directly from Outlook itself – check out the factsheet.

It creates a perfect meeting experience: thanks to integration with videoconference platforms such as MS Teams, Zoom and Webex, the Rendezvous software platform is ideal for bringing distributed teams together – the frustrations of videoconferencing are eliminated.

The Rendezvous system also integrates with the Utelogy building management platform – this ensures that scheduled meetings are conducted without technical hitches and it is great for Environmental, Social and Governance (ESG) – increasingly seen as a key criteria for talent retention in organizations and enterprises.


Employee engagement is a vital component for business success. High engagement levels lead to numerous benefits, including increased productivity, lower staff turnover, and better customer satisfaction.

Businesses should continuously evaluate and enhance their engagement strategies to create a positive and productive work environment.
Technology platforms and apps such as Rendezvous, can help by creating a streamlined and accessible working environment where staff can collaborate and flourish.

Book a demo below to experience the full suite of features our workplace management platform delivers, and to discover how it can help to significantly improve your company’s employee engagement levels.