Understanding Employee Engagement

Employee engagement refers to the emotional commitment an employee has towards their organisation and its goals. Engaged employees care about their work and their company. They don’t work just for a paycheque, but are genuinely invested in contributing to their organisation’s success.

This concept goes beyond job satisfaction or happiness—it’s about connection, motivation, and discretionary effort. When employees are engaged, they’re more productive, innovative, and loyal.

Why You Should Care

• Increased Productivity: Engaged teams show up every day with purpose and perform better. They are more likely to go the extra mile, contributing ideas, solving problems proactively, and collaborating effectively across teams. This often results in higher output, better customer service, and improved business outcomes.
• Lower Turnover: High engagement correlates with greater retention. Employees who feel valued and connected to their work are less likely to seek opportunities elsewhere. This reduces the costs associated with hiring and onboarding, and helps maintain organisational knowledge.
• Stronger Culture: Engaged employees help foster a collaborative, positive workplace. They tend to support their colleagues, embody company values, and contribute to a sense of shared purpose, which in turn attracts like-minded talent and strengthens employer brand.

Why Is Employee Engagement So Important?

Post-pandemic work patterns, the rise of hybrid work, and evolving employee expectations (especially from Gen Z) mean engagement is more vital than ever. Employees today are looking for flexibility, purpose, and opportunities to grow. Organisations that prioritise engagement will attract and retain top talent, close skills gaps faster, and build resilient cultures capable of adapting to change.

Recent research by Gallup shows that global employee engagement has dropped to 21%—the lowest in a decade—with younger workers most affected. Simultaneously, Deloitte’s 2025 Human Capital Trends report highlights how purpose, belonging, and wellbeing have become central to employees’ expectations of work.

Key Drivers of Employee Engagement

1. Recognition and Feedback

Employees thrive when they feel seen and appreciated. Regular recognition, both formal and informal, reinforces positive behaviours and motivates continued performance. Feedback loops should be constructive and continuous, helping employees understand their strengths and areas for growth.

2. Leadership

Transparent, empathetic leadership builds trust. Leaders who communicate openly, make ethical decisions, and show genuine concern for their team’s wellbeing are more likely to inspire commitment and engagement.

3. Meaningful Work

Employees want to contribute to something bigger than themselves. When their work aligns with their personal values and they see the impact of their efforts, they’re more engaged and motivated.

4. Career Development

Opportunities to learn and grow are crucial to maintaining engagement. This includes access to training, mentorship, and clear pathways for advancement. Employees are more likely to stay with organisations that invest in their professional growth.

5. Wellbeing Support

A healthy work-life balance and mental health initiatives matter. Employers that promote wellbeing—through flexible schedules, mental health resources, and supportive policies—demonstrate care, which boosts morale and engagement. For more on this, see our guide to the rise of total rewards in 2025.

How Do You Measure Employee Engagement?

Organisations use various tools and methods to assess engagement:

• Engagement Surveys: Typically conducted annually, these surveys assess employee attitudes across key themes such as satisfaction, motivation, alignment with company values, and likelihood to stay. They provide a baseline for understanding overall engagement levels.
• Pulse Surveys: Shorter, more frequent surveys that capture real-time sentiment. These can be used to track specific initiatives, monitor morale during periods of change, or identify emerging issues before they escalate.
• eNPS (Employee Net Promoter Score): This single-question metric gauges how likely employees are to recommend their workplace to others. It’s a quick, powerful tool for tracking engagement trends over time.
• One-to-Ones & Team Feedback: Direct conversations between employees and managers offer valuable qualitative insights. These discussions can surface personal motivations, frustrations, and suggestions that surveys may not capture.
• People Analytics: Advanced organisations are turning to HR data and people analytics to identify engagement trends and inform strategy. From predictive turnover modelling to performance sentiment tracking, analytics can turn raw data into actionable insight. Explore our full guide on HR data and people analytics.

Strategies to Improve Employee Engagement

1. Clear, Consistent Communication

Open and transparent communication ensures employees feel informed and included. Leaders should regularly share updates on business goals, progress, and challenges, and create opportunities for two-way dialogue where employees can voice opinions and ask questions.

2. Flexible Work Options

Offering hybrid work models, flexible hours, and autonomy over how work is done shows trust and supports work-life balance. When employees have control over their schedules, they’re more likely to feel empowered and motivated. PwC recently found that three days in the office per week delivered the highest engagement levels across its workforce, based on real-time attendance and productivity data.

3. Recognition and Rewards

Implement systems to celebrate achievements, from formal awards programmes to everyday shout-outs in meetings or digital channels. Personalised recognition—tailored to individual preferences—makes employees feel truly valued.

4. Learning and Development

Provide access to professional development through internal training, mentorship, or accredited programmes like Avado’s CIPD qualifications. Investing in learning demonstrates a commitment to employee growth and signals clear career pathways

5. Manager Enablement

Train and support people managers in coaching, communication, and performance management. Managers play a critical role in shaping the employee experience, and empowered leaders are key to sustaining engagement at team level. See our full guide on performance management for HR.

Employee Engagement vs. Employee Satisfaction

While often used interchangeably, the two concepts differ:

• Engagement is about emotional commitment and effort. Engaged employees are enthusiastic about their work and driven to contribute to the organisation’s success.
• Satisfaction reflects whether employees feel content or comfortable. A satisfied employee may not be actively disengaged, but may not go beyond basic job requirements.

You can have satisfied employees who aren’t engaged—coasting without contributing fully. True engagement drives performance, innovation, and retention.

Impact of Remote Work on Employee Engagement

Remote and hybrid models pose new engagement challenges:

Risks

Isolation, miscommunication, and lack of team bonding can reduce morale. Without regular face-to-face interactions, employees may feel disconnected from their colleagues and the company. Experts have flagged this growing disengagement as a contributor to “boreout syndrome”—a state of workplace boredom and burnout—particularly among younger professionals.

Solutions

• Invest in Digital Communication Tools: Tools like Slack, Microsoft Teams, and Zoom help maintain connection and collaboration.
• Encourage Virtual Socials & Team Rituals: Online coffee breaks, quizzes, or team check-ins can build camaraderie.
• Set Clear Goals & Check In Regularly: Clarity around expectations and frequent feedback help remote employees stay aligned and supported.

Daily Practices for Managers

Managers influence engagement more than anyone else. Here’s how they can make a daily impact:

• Recognise Achievements: Offer genuine praise for accomplishments, both big and small. Even a quick thank-you can reinforce positive behaviour.
• Offer Support and Coaching: Make time to understand individual team member needs, remove roadblocks, and provide career guidance.
• Hold Short, Regular Check-Ins: Brief daily or weekly conversations help build rapport and keep communication flowing.
• Encourage Autonomy and Trust: Empower employees to make decisions and take ownership of their work, which builds confidence and commitment. Incorporating regular performance check-ins, goal alignment and development discussions, as described in our guide to performance management, can significantly boost engagement.

How Often Should You Measure Engagement?

• Annually: In-depth surveys give a broad understanding of engagement trends and support benchmarking.
• Quarterly: Pulse surveys help monitor the impact of specific initiatives and track momentum.
• Ongoing: Embedding regular feedback through digital tools, team meetings, and manager check-ins ensures continuous listening and improvement.

The Role of Leadership in Engagement

• Vision: Leaders should clearly articulate the company’s direction and how each employee contributes to shared goals. This alignment gives purpose to daily work.
• Communication: Leaders must communicate with honesty and empathy, especially during times of change. Transparent communication builds trust.
• Inspiration: Leaders who embody company values, recognise contributions, and celebrate team wins inspire commitment and pride in the workplace.

Building a Culture of Engagement

Employee engagement isn’t a one-off initiative—it’s a long-term, strategic commitment. For HR and L&D professionals, it’s about fostering a workplace where people can thrive, grow, and feel deeply connected to a shared purpose.

Creating a truly engaged workforce means embedding engagement into every stage of the employee experience—from onboarding and performance management to continuous learning and authentic leadership. That’s where Avado comes in.

As a newly awarded CIPD Platinum Centre, Avado is recognised for delivering excellence in HR and L&D education. Our CIPD-accredited qualifications are designed to equip you—and your teams—with the practical skills and strategic mindset needed to build engaged, high-performing organisations.

Explore Avado’s CIPD Qualification today and take the next step towards becoming an engagement-led leader.

• CIPD Level 3: The CIPD Level 3 Certificate in People Practice is ideal for anyone looking to start a career in either HR or Learning and Development.
• CIPD Level 5: The CIPD Level 5 Associate Diploma in People Management will help you build on your existing HR knowledge.
• CIPD Level 5 L&D: The CIPD Level 5 Diploma in Organisational Learning and Development is the most comprehensive course available for L&D professionals, ideal for you if you want to formalise your existing experience, skills and knowledge.
• CIPD Level 7: The CIPD Level 7 Advanced Diploma is aimed at expanding learners’ autonomy so they can strategically direct organisations and their people.