7 Effective Employee Engagement Strategies

Employees are the cornerstone of a successful business. Their engagement transforms workplaces into more positive, productive and profitable environments. However, finding the best methods to boost engagement requires strategic effort.

In this article, you’ll learn what employee engagement is and get seven strategies for improving it.

What is employee engagement?

Employee engagement is the enthusiasm, dedication and investment employees have in their work and workplace. It’s how connected an employee feels to their organization, goals and role.

Engaged employees are:

• Proactive. They take initiative, seek opportunities for improvement and go beyond their day-to-day roles to achieve higher goals

• Reliable. They meet deadlines, deliver quality work and follow through on commitments

• Enthusiastic. They display genuine enthusiasm for their tasks and bring positive energy to the workplace

• Adaptable. Engaged employees adapt quickly to new challenges, helping the organization stay agile and responsive

• Aspirational. They’re committed to professional development and seek opportunities to expand their skills

Employee engagement is a company-wide issue but is usually handled by human resources (HR) management. In smaller companies, managers or business owners often take on the responsibility of boosting engagement.

4 levels of employee engagement

There are four levels of employee engagement:

1. Highly engaged employees. Employees are involved in and enthusiastic about their work and the workplace. They’re proactive, show initiative and consistently contribute to the company’s goals consistently.

2. Moderately engaged employees. These employees show moderate levels of enthusiasm and commitment. They may engage in some areas but are inconsistent in their performance.

3. Barely engaged employees. Employees who have almost ”checked out”. They put in time but have no energy or passion for their work. They do their jobs without enthusiasm and are less likely to put in discretionary effort to improve team performance.

4. Completely disengaged employees. They’re outright unhappy at work and may spread negativity in the workplace. They’re often critical of the company and can affect team morale.

According to Gallup’s State of the Global Workplace, only 23% of employees worldwide are engaged, meaning there’s plenty of room for organizations to improve and build an engaged workforce.

How employee engagement improves business outcomes

Here are the high-level benefits of employee engagement:

Increased productivity

Engaged employees are more motivated and perform their tasks efficiently, boosting productivity.

Higher employee retention

Organizations with high engagement see lower turnover rates and higher employee satisfaction, reducing costs associated with hiring new staff.

Decreased absenteeism

Effective employee engagement also prevents absenteeism since employees enjoy their work and want to achieve high performance.

Enhanced customer satisfaction

Engaged and satisfied employees deliver better customer service, increasing customer loyalty. Their positive attitude translates into more effective client interactions, boosting the customer experience.

Improved financial performance

Companies with high employee engagement often experience increased profitability. Motivated and committed employees contribute directly to the bottom line through improved performance.

Innovation and creativity

Engaged employees are more likely to share knowledge and innovate. They often bring fresh ideas and solutions that give the company a competitive edge.

Positive workplace culture

Engaged employees contribute to a healthy work environment. They create a collaborative culture of trust and mutual support that enhances team dynamics.

7 employee engagement strategies

Here are seven employee engagement ideas you can use to boost employee performance.

1. Understand what drives engagement

Knowing the drivers of employee engagement helps you create strategies to improve them. For example, if flexible work hours inspire engagement, you could use a more adaptable scheduling policy.

However, finding specific engagement drivers is challenging because they vary among people and industries. Some employees might find engagement through professional development, while others prefer recognition and rewards.

The good news is several high-level factors play a significant role in engagement, including:

• Purpose. An employee needs to understand how their work contributes to larger goals. They’re more engaged when they see how their role connects to the company’s mission and their personal growth.

• Development. Employee development opportunities drive engagement significantly. Employees want to know they can advance their skills and careers.

• Recognition. Acknowledging hard work regularly improves the employee experience by making people feel valued.

• Usefulness. Employees thrive when they use their strengths often. Identify each person’s strengths and assign tasks that leverage them. For example, if an employee is a creative thinker, involve them in more innovation-driven projects.

• Involvement. Including your staff in the decision-making process gets them invested in the work. When involved directly, they’ll feel a personal commitment to the tasks.

• Consistency. It’s easier to keep employees engaged than to re-engage them. Work on engagement constantly rather than approaching it as a one-time effort when things go south.

• Problem-solving. Find out what bothers your employees and look for root causes. If your management style is reducing engagement, it’s time to switch it up.

• Empowerment. Give your employees clear expectations, challenge them to meet a goal and empower them to achieve it. When you trust employees with responsibility, they’ll strive to achieve their goals.

We’ll expand on these factors in the rest of the targeted strategies.

2. Encourage managers to develop coaching skills

Managers play a substantial role in driving engagement. According to Gallup, they’re responsible for up to 70% of team engagement variances. Shifting from a traditional “boss” mindset to a coaching mindset is essential to maximize this impact.

A coaching mindset helps employees view managers as growth facilitators rather than roadblocks. It builds trust and empowers employees by focusing on their potential, not task completion.

Unlike a boss mindset focused on authority, coaching emphasizes listening, questioning and guiding team members. It encourages and inspires employees to find solutions. You need a structured approach at all levels, from frontline management to senior executives.

Here are some ways to develop coaching skills among your managers:

• Invest in soft skills training programs focusing on emotional intelligence, active listening and feedback

• Host workshops and seminars on leadership to give managers practical tools and techniques

• Implement peer mentorship programs for managers to learn from each other and develop coaching skills collaboratively

• Encourage managers to practice goal-setting through career development discussions and personalized employee feedback

3. Foster open communication

Open communication is a two-way exchange of information between managers and employees, marked by active listening, honest feedback and regular dialogue. It creates trust, transparency and inclusivity.

When employees feel informed and heard, they become more committed. Open communication empowers them to share ideas and concerns, fostering a collaborative, innovative environment.

Here are some strategies to create a culture of open communication in your workplace:

4. Provide recognition and rewards

Recognition boosts engagement by affirming the value employees bring to the company. This positive reinforcement creates a company culture where employees maintain and exceed performance.

Rewards come in many forms. Simple verbal acknowledgment boosts morale by making employees feel valued. Monetary awards, like performance bonuses or gift cards, are another simple way to reward hard work.

Similarly, more significant achievements should be highlighted publicly in meetings or newsletters to reinforce a culture of appreciation.

Here are some tactics to consider when developing a reward system:

• Explain the requirements. Set clear criteria for rewards. For example, outline key performance indicators (KPIs) for quarterly bonuses and communicate achievements that qualify for Employee of the Month programs.

• Tailor recognition to individuals. For maximum impact, customize rewards based on what employees resonate with most. If they’re motivated by learning opportunities, offer them a complementary course. For someone who values family time, provide an extra paid day off.

• Make it timely. Implement a system for providing praise quickly, such as sending thank-you notes after successful projects or establishing a “spot award” program to recognize notable efforts immediately.

• Create a recognition platform. Use a bulletin board for peer shout-outs and congratulations. Send employee recognition messages on Slack or set up a physical ”Wall of Fame” in a prominent office area.

5. Support career development

When employees see clear growth opportunities, they become more invested in their roles. Supporting career development shows you value your employees’ futures, motivating them to work toward company goals and grow with the organization.

Create individual development plans (IDPs)

Work with employees to create personalized development plans that outline career goals, skill gaps and action steps. Review and update these plans regularly to align with evolving aspirations and organizational needs.

Offer skill-building opportunities

Provide access to training programs, workshops and online courses that introduce new skills. Encouraging participation in industry conferences can also broaden employees’ knowledge and network.

Provide mentorship programs

Pair less experienced employees with seasoned mentors who can provide guidance, support and industry insights. This relationship helps employees navigate career paths more effectively and build valuable professional connections.

Design career pathways

Highlight clear career pathways so employees can see how to advance within your organization. Showcase potential opportunities and success stories to help employees see their future with your company.

Encourage cross-departmental projects

Motivate employees to participate in activities outside their usual scope. Cross-departmental projects broaden skills and expose employees to new roles, creating a more well-rounded workforce.

6. Encourage work-life balance

Employees who balance their professional and personal lives are more content, experience less burnout and have better mental health. These factors contribute to better engagement and productivity, making work-life balance a necessity.

To enhance employee well-being and work-life balance, companies can adopt strategies like:

• Providing flexible work arrangements. Flexible working arrangements make it easier for employees to balance their workload. You could offer remote work options or allow adjustable start and end times to manage schedules better.

• Setting firm boundaries. It’s important to have downtime after work to recharge. Setting boundaries that respect personal time and discourage after-hours work communication can create a healthier, more engaged team.

• Enabling work-sharing arrangements. Divide roles and responsibilities among employees to prevent overwork. Encourage collaboration to ensure tasks are manageable for everyone involved.

• Providing stress management resources. Wellness programs are a good way to encourage physical and mental health. In a high-pressure industry, you might also offer access to mental health support or workshops to manage workplace stress.

7. Measure and optimize employee engagement strategies

You can’t know which engagement activities are working without tracking the effectiveness of your employee engagement initiatives.

Here are some useful metrics to measure employee engagement:

Employee turnover rate

Employee turnover measures the rate at which people leave an organization during a specific timeframe. If your turnover rate is substantial, it’s a sign you need to increase engagement.

To calculate the employee turnover rate, take the number of employees who left in a given period (e.g., a year) and divide it by the average number of employees you had. If 10 employees leave over a year and your average workforce is 200, your turnover rate is 5%.

Absenteeism rate

The absenteeism rate tracks how frequently employees are absent from work. A high absenteeism rate suggests your employees don’t want to come to work, and you’ll need to dive deep to identify the root causes.

Calculate absenteeism by dividing the number of absentee days by the number of available working days for all employees.

Productivity levels

Productivity metrics measure the output of employees, depending on their roles. Metrics like sales figures or the number of completed projects can help you gauge productivity. If you notice productivity is falling, you should implement new engagement strategies.

A customer relationship management (CRM) system like Pipedrive can help you track KPIs and sales metrics easily. Create custom dashboards to report on the metrics that matter and monitor the effects of your engagement initiatives in real time.

Employee engagement surveys

Job satisfaction surveys (pulse surveys) collect insights into employee happiness and engagement. Asking questions like “How engaged are you from 1 to 5?” helps you assess issues.

Conducting quarterly surveys lets you analyze scores for trends and see whether engagement is increasing or decreasing.

Net promoter score (NPS)

A net promoter score measures the likelihood of an employee recommending your company as an excellent workplace.

To gather NPS data, ask your employees to rate your company on a scale of 1 to 10. Calculate the percentage of Promoters (scoring 9 to 10) and Detractors (scoring 0 to 6), then subtract the latter from the former. If 50% are Promoters and 10% are Detractors, your NPS is 40%.

The higher your NPS, the better. If yours is low, seek feedback and learn how to improve your workplace.

Participation in employee engagement programs

Track how many employees engage with initiatives like wellness programs or team building. If a particular activity has high participation (e.g., higher than 80%), it engages your employees successfully.

Use these participation metrics to see what your workforce enjoys and finds useful, then tailor your other initiatives accordingly.

How Pipedrive helps boost employee engagement

Employee engagement software can help organizations measure, track and improve employee involvement. However, dedicated employee engagement tools use a lot of time and resources.

Pipedrive, primarily a CRM tool, supports engagement efforts by streamlining communication, aligning team goals and tracking progress. As a powerful all-in-one software, Pipedrive boosts team engagement while driving success in sales, marketing and projects.

Final thoughts

Engaged employees are happier, more productive and more likely to stick around and grow with your company. Recognizing their achievements, supporting career development and cultivating a positive workplace can boost morale and drive better results for the organization.

Start transforming your team’s engagement and performance today. With a 14-day free trial, discover how Pipedrive can streamline processes and empower your workforce.