The 7 Factors of Employee Engagement

The seven factors of employee engagement are strong leadership, a caring culture, meaningful work, regular feedback (including recognition), professional growth opportunities, the autonomy to work independently, and an inclusive work environment where employees feel free to be their authentic selves.

How Leadership Impacts Employee Engagement

Leadership has a powerful impact on employee engagement because everything a leader does affects—helps, hurts, or hinders—company culture. Culture influences employee experience, which shapes a worker’s perception of their job over the course of their tenure with a company and builds engagement.

How Employee Engagement Affects Profitability

Employee engagement affects profitability in a variety of ways. Engagement can significantly improve productivity, safety, absenteeism, retention, and customer satisfaction. Engaged employees are also better at adapting and innovating, which are both necessary for sustainable profitability.

What Are Employers Doing to Retain Employees?

To retain employees, employers are investing in developing human-centered leadership at all levels of the organization who let employees know they’re valued, model core values and behaviors, provide coaching opportunities, and foster a healthy system of feedback between employees and leadership.

How Employee Retention Affects the Organization

Employee retention affects an organization’s performance, productivity, culture, profitability, and customer satisfaction in positive and negative ways. While the high costs of turnover make retention essential for an organization’s future success, retaining the wrong employees can hinder success.

The Downsides to High Employee Retention

The downsides to high employee retention are disengaged employees who remain in their roles, hurt productivity, create toxic work environments, and drive good employees away. High retention can also lead to difficulty implementing change, less innovation, and a lack of diversity and inclusion.

How Employee Engagement Affects the Financial Performance of a Company

Employee engagement can affect the financial performance of a company because it is tied to an employee’s performance, productivity, absenteeism, retention, and customer satisfaction. It can also impact a company’s ability to innovate and improve processes, which are both necessary for financial success.