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Why Investing in Employee Engagement Makes Sense?

When employees feel unhappy and stressed at their workplace, they tend to become less productive at work. This impacts the organization’s performance and efficiency negatively.  Hence, investing in employee engagement is critical for organizations to ensure business growth and profitability.

Why Employee Engagement Matters?

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Employee engagement has become the key to building a highly motivated workforce.

An engaged workforce is known to outperform a workforce with low engagement levels by a significant margin.

This is because engaged employees are more likely to show higher levels of commitment and dedication to organizational growth and success.

Such employees tend to make every effort to maximize their productivity, indulge in less absenteeism, and even work towards inspiring and motivating their coworkers to constantly improve their performance.

Moreover, having an engaged workforce also helps in enhancing the employer brand value of the organizations.

This makes it easier for these organizations to attract the most skilled and competent candidates from the industry.

Why Investing in Employee Engagement Makes Sense for Organizations?

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When employees have higher levels of engagement, they develop with a sense of pride and happiness in their jobs.

There is no denying the fact that employee engagement can offer a wide range of benefits to organizations.

Thus, investing in employee engagement is critical for organizations to improve their growth and bottomline.

Discussed below are a few of the key reasons why investing in employee engagement makes sense:

1. Reduction in Employee Turnover

2. Improves Organizational Culture

3. Lower Absenteeism within the Workforce

4. Boosts Workforce Productivity

5. Drives Innovation and Creativity

Why Investing in Employee Engagement Makes Sense?

1. Reduction in Employee Turnover

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Low engagement level is one of the biggest reasons that make employees seek job options elsewhere.

An increase in the number of such employees often results in higher turnover rates and this can have seriously damaging consequences for the organization.

In addition to enhancing employee motivation levels, a reduction in turnover rates can minimize the instances of workflow disruptions and consequent financial losses.

2. Improves Organizational Culture

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Highly engaged employees tend to be extremely passionate about their work and committed to organizational growth.

They are more than willing to share their experience and skills to help their coworkers succeed in the tasks assigned to them.

Such employees make constructive efforts to make the overall work environment pleasing and relaxed.

They understand that working in a stress-free and fun-filled environment helps improve employee motivation levels significantly.

This helps in improving the overall work culture and ensures better coordination and cooperation between colleagues.

3. Lower Absenteeism within the Workforce

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When the members of the workforce are highly engaged, they tend to avoid missing work for trivial reasons. Such employees feel responsible for fulfilling their roles and responsibilities in an effective and timely manner.

This motivates them enough to come to work regularly and ensures that their teams or their organization do not have to bear the consequences of their absenteeism.

Such employees even act as a source of inspiration for other members of the workforce. They motivate their peers to enhance their dedication and performance levels for the timely fulfillment of organizational goals.

4. Boosts Workforce Productivity

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As mentioned before, highly engaged members of the workforce prioritize their work above everything else. They are thus driven to give their best to every task and responsibility assigned to them.

This ensures that they are consistently productive and deeply committed to the growth and success of their organization.

Such employees tend to seek an element of fun, challenge, and excitement in every task assigned to them.

Their only objective is to get the work done and get it done with the highest quality standards. They are thus responsible for boosting employee productivity significantly.

5. Drives Innovation and Creativity

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Employees with higher engagement levels also tend to have higher happiness and satisfaction levels at the workplace.

This is because they are extremely passionate about doing their work in the right manner and as per the desired quality standards which in turn enhances their sense of self-worth.

Such employees are constantly seeking more effective and simpler ways to solve problems and improve the process of completing various tasks.

They are thus responsible for driving innovation and creativity within the workforce.


Given the rapidly increasing competitive levels in the industry, organizations can no longer afford to not invest in employee engagement initiatives. Most experts consider it to be one of the most critical contributing factors for ensuring sustained business growth and building competitive advantage.

Sagar Chaudhuri

Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of corporate and entrepreneurship experience. In the past, Sagar has worked in companies such as Genpact, Infosys, and ICICI Bank, in leadership roles. He has an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Connect on LinkedIn

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HiFives is a global employee rewards, recognition and engagement SaaS platform that enables organizations to digitize, automate and transform their employee experience. It is used by 100+ large enterprises, small businesses and startups in manufacturing, retail, technology, financial services and media, across 25+ countries.