Future of Work Glossary

TABLE OF CONTENT

Engagement

Also seen as:

What is employee engagement?

Employee engagement is when your people wake up excited to tackle challenges instead of counting hours until 5 PM. It's the emotional connection that drives employees to give their best effort because they believe in the mission and see their future tied to company success.

Engaged employees don't just do their jobs—they improve them.

Why engagement drives everything else

Engaged employees are 23% more profitable, have 18% higher productivity, and are 12% more likely to stay with their company. They also become your best recruitment tools through referrals and positive employer brand advocacy.

Disengaged employees, on the other hand, cost companies thousands in lost productivity, increased errors, and negative team impact.

Elements of employee engagement

Purpose connection Employees understand how their work contributes to company success and aligns with their personal values and career goals.

Growth opportunities Clear paths for skill development, increased responsibility, and career advancement that keep employees invested in their future with the company.

Recognition and feedback Regular acknowledgment of contributions and constructive guidance that helps employees improve and feel valued.

Autonomy and trust Freedom to make decisions and approach work in ways that leverage individual strengths and preferences.

Building sustainable engagement

Start with hiring for fit Engagement begins with hiring people whose values align with your company culture and whose career goals match available opportunities.

Create meaning in work Help employees see the impact of their contributions. Connect individual tasks to customer outcomes and company mission.

Invest in development Provide learning opportunities, stretch assignments, and mentoring that show commitment to employee growth.

Foster belonging Build inclusive environments where everyone feels heard, valued, and connected to teammates.

Measuring engagement effectively

Regular pulse surveys Short, frequent surveys that track engagement trends and identify issues before they become turnover risks.

Stay interview conversations Proactive discussions about what keeps employees engaged and what might cause them to consider leaving.

Performance correlation analysis Track how engagement scores relate to performance metrics, retention rates, and business outcomes.

Team dynamic assessments Evaluate how well teams collaborate, support each other, and work toward shared goals.

The business impact of high engagement

Reduced turnover costs Engaged employees are 40% less likely to leave, saving significant recruitment and training expenses.

Improved customer satisfaction Engaged employees provide better customer service and create more positive brand experiences.

Innovation and problem-solving Engaged teams generate more creative solutions and take initiative to improve processes and outcomes.

Example: A marketing agency implements monthly one-on-ones focused on career development, creates project rotation opportunities, and establishes peer recognition programs. Result: engagement scores increase 45% over six months, voluntary turnover drops to 8%, and client satisfaction ratings reach all-time highs.