The Power of Engagement: Why Your People Are the Key To Unstoppable Performance

Share:

Brad Federman, Contributor

I have walked through workplace hallways and seen them buzzing with energy. Employees greet each other with genuine smiles, their conversations are vibrant, and their focus is sharp. 

You can sense it immediately—this team isn’t just working; they are thriving. They are engaged. 

I have also experienced the opposite. The atmosphere is heavy, people avoid eye contact, and tasks are performed out of obligation rather than passion. 

The difference between these two workplaces is not just culture—it’s performance, retention, safety, and even profitability. 

Leaders like Ken Blanchard and Simon Sinek have long emphasized that success comes from putting people first. Yet many organizations struggle with balancing people with results, forgoing culture, engagement, and long-term results for short-term gains. 

When we engage our employees in their work, we create the conditions for them to perform at their best. This is achieved in several ways. 

Engagement significantly improves performance by fostering a motivated and committed workforce, which leads to increased productivity, higher quality of work, and reduced turnover. Engaged employees are more likely to be proactive, collaborative, and aligned with organizational goals, driving overall business performance.

Let’s explore why engagement is more than an esoteric idea; it’s the heart of your organization’s story.

An Engagement Story

It was one of the rare moments in my career where I genuinely feared for my safety.

I was brought in to help improve employee engagement at a high-tech company that was struggling to stay afloat. The business was burning through cash, missing goals, and teetering on the edge. 

As always, we began by establishing a baseline through our survey process, tying each item to critical outcomes like turnover, productivity, and brand ambassadorship—the ability of employees to speak positively about the company, both inside and outside its walls.

What we uncovered went far beyond disengagement. This was not just a case of employees feeling disconnected; it was a full-blown rebellion. 

The level of hostility and resentment was palpable, so much so that I had to redact entire sections of the survey’s comments because they included vulgar, targeted attacks on executives by name.

Facilitating focus groups felt more like standing before an angry mob. The room was tense, and the frustration was raw. 

I had to assure them repeatedly: I was not part of the company—I was there to help. Even then, I had to work hard to convince them that their feedback would remain confidential before anyone would truly open up.

But once they did, the picture became clear. Employees were actively sabotaging the company. They were not just disengaged; they were bleeding the business dry—intentionally. 

Why? Because they believed senior management deserved it. 

The leadership had created a set of cultural values and expectations for everyone else to follow but did not live by them themselves. Hypocrisy at the top had poisoned the organization from within.

Culture, as I often say, is defined by the worst behavior you are willing to tolerate. And senior leadership’s behavior had set the tone. 

Convincing them that they were the root of the problem was one of the most challenging—and riskiest—conversations of my career. But it had to happen.

Once senior leadership acknowledged their role and committed to changing their behavior, everything began to shift. Engagement numbers soared by over 50% in a single year, and the company turned its finances around with a $11 million positive swing in its bottom line.

It was a hard-fought transformation, but it was proof that culture starts at the top—and when leaders live the values they preach, the results can be extraordinary. 

Engagement Is the Antidote to Turnover

Take Sarah, a talented software developer. She is brilliant at her job, but lately, she’s been disengaged. Her ideas are ignored, her manager rarely checks in, and the company’s mission feels more like a wall poster than a rallying cry. 

Sarah feels invisible, and like so many others, she is considering leaving. Now contrast Sarah with Alex, another developer at a different company. 

Alex’s manager regularly asks for input, celebrates wins, and connects every project to the company’s broader purpose. Alex feels valued, respected, and energized.

The statistics back up this difference in experience:

• Highly engaged employees are 87% less likely to leave their companies.
• Companies with high engagement see 59% lower turnover.
• Disengaged teams face turnover rates that are 18% to 43% higher.
• Absenteeism is reduced by 75% when employees are engaged.

Turnover is not just a line item on a budget, it’s a drain on energy, resources, and morale. 

When Sarah leaves, her company doesn’t just lose a developer; it loses institutional knowledge, relationships, and momentum. Meanwhile, Alex’s company retains its top talent and builds a foundation for growth.

Engagement is an antidote to the silent epidemic of attrition. It creates loyalty, not through gimmicks or perks but by fostering a workplace where people genuinely want to stay. 

“Want to stay.” The phrasing is deliberate because it captures something many companies overlook. Most focus on the obvious turnover—employees walking out the door. But the real danger lies in the turnover you can’t see when disengaged employees stay.

At PerformancePoint, we often say, “You may have the bodies, but how many souls have left the building?”

The absence of turnover isn’t always a win. When unmotivated team members linger, productivity suffers, energy drains, and your culture erodes from within. Sometimes, it is not who leaves, that is the problem—it’s who stays without being truly present. 

The Multiplier Effect of Discretionary Effort

Have you ever noticed that some employees seem to bring a spark to everything they do? They don’t just meet expectations, they exceed them. 

This is a discretionary effort in action: the energy people pour into their work when they feel engaged. And it’s a game-changer.

I’ve visited a number of manufacturing plants and walked their floors. I have seen two teams/lines producing products. 

Team A, disengaged, does the bare minimum to avoid complaints. Errors are common, and morale is low. 

Team B, engaged, approaches each day with a sense of ownership. They take pride in their work, innovate solutions to challenges, and even help each other succeed. 

The difference? Team B produces higher-quality widgets, faster, and with fewer defects.

Here is what the research shows about engaged employees:

• Engaged teams are 21% more profitable.
• Companies with engaged employees outperform others by 202%.
• Effective internal communication motivates 85% of employees to go the extra mile.
• Engaged companies can see up to 166.7% higher revenue.

Engagement unlocks the potential within individuals and teams, turning ordinary outcomes into extraordinary results. It’s the multiplier effect at work, where the whole becomes far greater than the sum of its parts. 

Why? Because when people truly care, their effort isn’t just greater, it’s smarter. They focus on the right priorities, collaborate with the right people, and take action at the right moments. 

True productivity and discretionary effort go far beyond simply staying busy or checking tasks off a list. They embody the magic of teamwork and a shared vision coming to life, day after day.

Safety Starts with Engagement

Let’s step into a different scenario, a manufacturing plant where safety is paramount. 

On one side, you have a team of disengaged employees. They are distracted, cutting corners, and reluctant to speak up about potential hazards. 

On the other side, you have an engaged team. They are focused, diligent, and proactive about identifying risks.

Which team would you trust with your safety protocols?

The numbers speak for themselves:

• Disengaged employees have 64% more accidents.
• Engaged teams experience 70% fewer safety incidents.
• Engaged teams can achieve a remarkable 16-month streak of being accident-free.

Engagement isn’t just about motivation, it’s about mindfulness. When employees are present and invested, they are less likely to make careless mistakes and more likely to create a culture of accountability. 

In workplaces where safety is a priority, engagement is non-negotiable. In that kind of environment, safety transcends rules, processes, and statistics—it becomes a way of life. 

It is about fostering psychological safety and genuine care for one another. Employees feel empowered to stop the line and speak the truth, even to the boss—without a trace of fear. 

They embrace this responsibility with fervent commitment because they know the stakes are personal: the well-being of the person standing next to them. They are driven by a shared determination to ensure that everyone leaves work unharmed, heading home—not to the hospital. 

Here, safety is not just a policy handed down from management; it is a living, breathing force that thrives in every conversation, every decision, and every action.

Customer Loyalty Starts with Engaged Employees

Now imagine you are dining at a restaurant. Your server is clearly disengaged—they barely acknowledge you, forget your order, and seem more interested in their phone than your experience. 

Contrast this with a server who is attentive, enthusiastic, and genuinely invested in making your meal memorable. Which experience would you rave about?

Employee engagement is the hidden driver behind exceptional customer service. Research reveals:

• 92% of executives agree that high engagement leads to happier customers.
• Companies with over 50% employee engagement retain more than 80% of their customers.
• When employees are engaged, there is an over 17% increase in customer loyalty.

Engaged employees are brand ambassadors. Their enthusiasm spills over into every customer interaction, creating experiences that build loyalty and trust. They don’t just serve customers, they delight them. 

Engagement Fuels Recruitment and Retention

When employees are engaged, they do not just stick around, they become your best recruiters. 

Think about it: when was the last time you recommended a company you didn’t believe in? Engaged employees, on the other hand, are eager to bring in people they know will thrive.

Here’s what makes engagement a recruiting powerhouse:

• Engaged employees are more likely to refer top talent, bringing in candidates who share their commitment to success.
• They advocate for the company on social media and job boards, enhancing your employer’s brand.

Engagement creates a cycle of success: happy employees attract great hires, who then contribute to an even stronger culture. It is more critical than ever to transform your organization into a talent magnet and an employer of choice. 

When you achieve this, you attract top-tier talent during prosperous times and stay ahead of the curve, facing fewer labor shortages than your competitors when challenges arise.

Why Engagement Is a Leader’s Responsibility

Here is the hard truth: engagement doesn’t happen by accident. It requires leaders who are willing to roll up their sleeves, connect with their teams, and make people feel seen and valued. This is where the philosophies of Ken Blanchard and Simon Sinek shine.

Blanchard often says that leadership is about serving others. In practice, this means asking yourself: How can I help my team succeed? What barriers can I remove? What recognition can I offer?

Sinek reminds us to start with “why.” Employees are engaged when they understand the purpose behind their work. A clear and compelling “why” transforms tasks into missions, creating a sense of belonging and motivation.

Engagement thrives when leaders:

• Communicate frequently and transparently.
• Provide opportunities for growth and development.
• Recognize and celebrate achievements, big and small.

When leaders prioritize engagement, they don’t just manage teams, they inspire them.

The Human Heart of Engagement

At its core, engagement is about connection. It is about recognizing that employees are people first, with hopes, fears, and dreams. It is about creating a workplace where they feel valued, respected, and empowered to contribute.

The story of engagement is a human story. 

It is Sarah choosing to stay because her ideas matter. It is Alex going above and beyond because he believes in the company’s mission. 

It is a team prioritizing safety because they care about each other. And its leaders, who make these stories possible through their actions every day. 

Engagement isn’t just a metric—it’s the heartbeat of your company’s culture. Ask yourself: Do you have a culture of engagement? One that amplifies every voice, values every contribution, and drives collective success?

An engagement culture transforms the workplace by delivering what employees truly need and want to thrive:

1. Work-Life Balance: Empowering employees to enjoy a fulfilling life beyond the office, creating harmony between personal and professional priorities.
2. Purpose and Meaning: Inspiring individuals with a sense of mission that goes far beyond just collecting a paycheck.
3. A Healthy Culture: Establishing shared values and practices built on respect, collaboration, and operational excellence.
4. Faster, Better, Stronger: Cultivating growth by sharpening skills, fostering resilience, and making your people more competitive every single day.

Engagement isn’t an initiative; it is a way of life. Are you ready to build a culture that people don’t just work in—but thrive in?

---