Why employee engagement is crucial for company success

Key takeaways

• Workforce engagement has a direct influence on productivity, innovation, and retention.
• Adequate employee benefits increase well-being and long-term loyalty.
• Appreciation programmes create a culture of high performance and appreciation.
• Recognition and rewards motivate employees and align behaviour with company objectives.
• Collaborating with Pluxee can level up your workforce engagement efforts with research-backed, people-led solutions.

What is employee engagement?

At its essence, workforce engagement is the emotional investment employees have in their company. Engaged employees care about their company's success and do whatever it takes to help the company succeed. They are passionate about their job and take pride in their work. These employees are not merely "doing their job" for a paycheck—they are driven to make the company better, innovate, and add value to its culture. 

You can read more about it on Mastering Employee Engagement: 10 Easy Techniques | Pluxee (Sodexo).

The advantages of employee engagement to businesses

Employee engagement is a principal driver of business success, directly impacting productivity, morale, and retention. Engaged employees perform more effectively towards organisational objectives, and this benefits the business in many ways.

Improved productivity

Happy employees are productive employees. When employees are emotionally invested in their jobs, they tend to do more than expected. They are less likely to slack off or lose interest in their work. Employee engagement makes people concentrate on quality, efficiency, and teamwork, resulting in increased output per team.

Increased retention rates

Employee turnover might prove to be expensive for an organisation. Starting from recruitment and training costs to losing valuable know-how, high-turnover-related costs can deal a heavy blow to a firm's bottom line. Engaged workers tend to remain with the company for extended periods, though. Employee engagement through a positive company culture creates a work environment in which people are valued and noticed, resulting in loyalty.

Enhanced customer satisfaction

Motivated employees are more inclined to provide first-class customer service. Because they are more personally invested in the success of the company, they are more customer-oriented and are better at resolving issues. Customers appreciate this, and it results in greater customer satisfaction and loyalty, which ultimately leads to increased sales and revenue.

Improved collaboration and teamwork

Employee engagement creates a sense of community and teamwork among groups. Employees who feel as though they are part of something greater than themselves are more inclined to collaborate towards common objectives. High levels of engagement generate open communication, trust, and collective problem-solving, which improves overall teamwork.

Increased innovation

Involved employees are more likely to share ideas and innovations that can assist the company in expanding and developing. Their emotional attachment to the company makes them concerned about its future and look for new means of enhancing processes, products, and services. This innovation can be a major differentiator in competitive markets.

The role of employee benefits in engagement

Whereas employee engagement is concerned with emotional investment, benefits support that engagement. A well-competitive and comprehensive benefits package is more than pay—it is a demonstration of the company's seriousness about caring for its employees, both in and out of work.

Health and wellness benefits

Providing health insurance, mental health assistance, gym memberships, and other wellness perks can contribute immensely to the satisfaction and motivation of employees. If employees are made to believe that their welfare is taken care of, they are more likely to feel respected and be committed to the firm.

Retirement plans

Retirement perks like pensions or Employee Provident Fund (EPF) give employees financial stability, and this lowers stress levels and enables them to be more productive in their jobs. When employees feel that their future is guaranteed, they tend to invest more emotionally in their present jobs.

Paid Time Off (PTO) and flexible work arrangements

Workers who are allowed to juggle their work and personal life are more likely to remain motivated. PTO, parental leave, and flexible work arrangements provide workers with room to recharge, which prevents burnout and enhances long-term productivity. The ability to have flexibility in their schedule also makes them feel trusted and appreciated by their employer.

How do employee recognition programmes foster engagement?

Recognition is an extremely effective motivator, and employee recognition schemes are perhaps one of the strongest means of stimulating employee engagement. When workers feel they are recognised for their hard work and accomplishments, they will feel valued and more loyal to the business. Recognition schemes may take several forms, such as public praise, reward, or ceremonial celebration. 

Boosts morale

A mere "thank you" can work wonders. When the workers are thanked for their efforts, they are noticed and appreciated. This encourages them and stimulates them to maintain the same high standard of performance. Appreciative workers tend to develop a sense of ownership of their work and feel proud of what they achieve. 

You can read more about it in Employee Engagement Strategies for a Better Workplace Environment in 2023

Reinforces positive behaviour

Employee recognition programmes also enable employers to reinforce behaviours that are consistent with the company's values and objectives. For instance, an employee who always shows teamwork or exceeds expectations in meeting deadlines can be rewarded, inspiring others to do the same. This provides a positive feedback loop of high performance.

Creates a culture of appreciation

Ongoing recognition of employees for their work builds a culture of respect and appreciation in the organisation. When recognition is ingrained in the workplace culture, it creates a tone of cooperation and positivity that boosts engagement at all levels.

The impact of employee rewards and recognition

Aside from recognition, employee rewards and recognition are concrete means to demonstrate to employees that their hard work pays off. Rewards may take the form of bonuses, gifts, or other rewards that deliver instant gratification. Their effects extend beyond the reward itself, though.

Creates healthy competition

Employee rewards and recognition can ignite friendly competition among employees, pushing them to give their best. When rewards are linked to certain achievements or performance levels, employees are encouraged to deliver higher results in the hope of gaining those rewards. This boosts overall productivity and engagement.

Strengthens company culture

Rewarding workers for certain behaviours or milestones reinforces the company culture. Whether celebrating an employee's anniversary or rewarding exceptional teamwork, these gestures of recognition reinforce the company's values and mission. Workers who feel their efforts are rewarded are more likely to stay engaged in their work.

Increases retention

A properly managed reward programme can also enhance employee retention. When employees recognise that their efforts are financially or tangibly rewarded, they feel a stronger affiliation with the firm and are less likely to look for other jobs. Retention is an important element of maintaining long-term success, and reward programmes have a strong role to play in this regard.

End note

There is no denying the power of employee engagement in making a business successful. From improved productivity and innovation to better retention and culture, connected employees are the fuel for successful organisations. By investing in quality employee benefits, recognition tactics, and employee rewards and recognition, organisations pave the way for sustained growth.

Pluxee, the world's leading employee benefits and engagement solutions provider, enables businesses to create happier, more engaged workplaces. With customised and cutting-edge programmes, Pluxee enables organisations to harness employee experience as a real source of competitive advantage.

FAQs

1.What are the benefits of the Pluxee Rewards & Recognition Suite?

Pluxee Rewards offers personalised gift cards with up to 3 years validity, tax savings up to ₹5,000/year, and access to 50 lakh+ retail outlets and 90,000+ online portals via RuPay. Employees also enjoy ₹8,000+ in exclusive deals and can manage their card easily with the Pluxee IN app.

2.Is there a minimum employee requirement to partner with Pluxee?

No, there’s no minimum employee requirement. Pluxee’s 100% digital and flexible benefits suite can be tailored to your organisation’s needs, regardless of size.