Why is Employee Engagement so Important in a Thriving Business?


The impact of low employee engagement

How can you improve employee engagement?

Ready to boost employee engagement?


Why is Employee Engagement so Important in a Thriving Business?

Take a moment to think about your organisation’s financial objectives and how you’re going to go about achieving them.

What’s it going to take?

Hiring the right people; retaining your best talent; boosting productivity? Chances are it’s all three, right?

Thriving businesses need exceptional individuals performing at their best, but none of this can happen without employee engagement.

The impact of low employee engagement

Why is employee engagement so important?

Because it impacts every aspect of your business.


People are relying on company recommendations before making a career decision more than ever before.

Research by Glassdoor found that a large majority of workers are now consulting job review sites, with almost one third actually rejecting job offers due to negative online reviews.

When employees are engaged, they’re much more likely to recommend the organisation, whether that’s to a friend or via an online review.


Employee engagement doesn’t just help you to bring in the best talent—it helps you keep hold of it too.

Dissatisfied employees are expensive. In fact, on average they waste approximately £2,700 per person when compared with their happy colleagues. 


If your employees are disengaged you could be losing a lot of money in lost productivity.

The whole of the UK economy certainly does. A 2015 Sage whitepaper estimated the cost of disengagement to be between £52 billion and £70 billion every single year.


Inevitably, that lost productivity leads to serious damage to your profitability.

If your workforce is disengaged you’re going to be getting outstripped on profitability by competitors with engaged employees by as much as 21%.

Your customers will notice

Have you ever dealt with an employee of a business that seemed unhappy in their job? It’s likely that they didn’t provide a great customer experience.

When your employees are unhappy they notice, and it impacts what they think of your organisation.

Highly engaged businesses see a 10% increase in their customer ratings compared with the competitors, which is also going to ultimately impact profitability.

How can you improve employee engagement?

So considering how important employee engagement is for your business, what can you do to improve it?

Don’t ignore employee feedback or ideas

For your employees to be engaged you need to engage with them. If they’re contributing ideas on how to make things better or providing feedback on any aspect of the business, listen to them.

When teams feel as though they’re being ignored by management they’re twice as likely to be actively disengaged.

Offer flexible working

Whether business leaders like it or not, flexible working is here to stay, and it’s something employees are looking for.

In fact, more than two thirds (37%) of workers are willing to quit their job and move to a company that offers it.

Flexible working has a big effect on employee loyalty too. Eight out of ten workers would stay with an organisation longer if they were offered more flexible working arrangements.

Give regular feedback

Do your employees regularly perform well and display a great attitude at work? Great! Make sure you let them know.

Failing to adequately provide feedback on worker performance makes it 40% more likely they’ll become actively disengaged.

Recognise hard work and reward employees

Recognition for a job well done is one of the biggest drivers of employee engagement. Research by Happily.ai found a ‘strong relationship between the amount of recognition an employee receives and their happiness at work’. 

And it doesn’t take a large investment to make recognition and rewards impactful. SHRM’s 2018 Globoforce survey found that spending just 1% of payroll on recognition delivers a positive impact on engagement.

Ensure clear career progression

It’s not enough to be simply happy in the role we’re currently doing—we want to know that there’s a clear progression path. This doesn’t just have an immediate impact on present job satisfaction, but also increases expectations for future job satisfaction.

Consider your company culture and goals

As we mentioned above, investing in employee engagement doesn’t have to be expensive in order to see an impact. However, that doesn’t mean it’s easy to achieve.

It’s not enough to simply Google ‘Employee Engagement Best Practices’ and implement them. The programmes and policies you put in place need to suit your specific organisation.

The best performing companies think about how employee engagement programmes and concepts will apply to their unique culture and goals.

This is a complex process that requires careful consideration of the organisation, surveying of employees and closely monitoring the effects of the measures that are implemented. For this reason, many businesses choose to work with an experienced partner with a track record of providing solutions that deliver significant employee engagement improvements and genuine ROI.

Ready to boost employee engagement?

Here at Sodexo Engage we know a thing or two about employee engagement.

For over six decades we’ve worked with organisations just like yours, perfecting our engagement offering to ensure it supports every aspect of employee wellbeing—physical, mental and financial—while also providing significant benefits for the businesses we work with.

If you’d like to find out more about how we’ll work with you to drive employee engagement while giving a boost to talent retention, employee productivity and business profitability, get in touch with one of our experts.

We don’t just prescribe a set list of solutions. We’ll work with you to identify the solutions that are the best fit for your organisation and support you in implementing them.

Ready to get started?

Contact our team today and fast track the journey towards your business goals.