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Why is Employee Engagement Important?

Why should you focus your attention on achieving high employee engagement within your company? What difference should it make? And what will happen if you don’t do anything to tackle employee engagement? This article will answer all of your questions and more. But first…

What is employee engagement?

Employee engagement is a measure of how engaged employees are within a company. By engaged, we mean how much they care about the company’s success, how informed and interested they are in its news and developments and how committed they are to its future.

A workforce with high employee turnover, low productivity and siloed teams may be a victim of poor employee engagement and needs to tackle the issue pronto.

Why should you focus your attention on achieving high employee engagement within your company?

In simple terms, the most important requirements for the workforce of any business are that a) they are sufficiently skilled to do their job and b) they have the tools, time and resources to deliver.  However, nothing is ever really that simple and even with the above, employees can still be unclear about their purpose, become complacent, or be enticed by another company.  What’s missing here is a culture and environment to inform, inspire and engage them.  After all, your employees spend such a large proportion of their daily life at work so you’ve got to help them to want to be there!

Employee engagement can be core to your company’s success as it affects all of the following:

Staff commitment and turnover

A happy, engaged workforce wouldn’t even entertain the idea of taking a job elsewhere and can instead be fiercely protective of your business and a keen ambassador both in and outside of work.


A highly engaged workforce would be determined to play their part in driving success for the business so they’ll work extremely hard and in some cases go above and beyond by devising new methods to increase efficiency or by putting in extra hours.


As mentioned above, a highly engaged employee will act as brand ambassadors both in and outside the company. When a PR and marketing agency can cost thousands of pounds a month and can only reach so far, having hundreds of people on the ground spreading the good word about your business for free can be an incredible benefit. What’s more, if they’re committed to doing a good job for you, they’re less likely to make an error at work which will mean that any risks to reputation caused by poor work will be avoided.

Training and upskilling

Training a disengaged workforce can be a poor investment because the staff may be about to leave the business, or they won’t put the effort into the training or apply the new skills effectively afterwards. With an engaged workforce, you can ensure that you reap the ROI of the training for years to come.


Hiring new staff can be costly if you have to rely on a recruitment company to find candidates. However, if your workforce is recommending your business as a great place of work to all their friends and family, you may find you can skip the agency’s fees altogether. What’s more, if your workforce is engaged and committed, staff turnover will be low and there will therefore be far fewer occasions to recruit.

What difference should an employee engagement programme make?

By not only devising a plan of attack to improve employee engagement but also by TELLING your workforce about it, you’ll see benefits in all of the areas outlined above.

Of course, employee engagement affects different businesses in different ways because there are so many factors at play such as number of offices, number of staff, sector and market position, and experience of management.

However, despite these differences, every company can make a significant impact by improving their communications to employees. We wrote recently about how internal communications can address employee engagement and includes 20 examples to get you started.

There are also a wealth of digital tools to help you out and all are covered in this guide.


What will happen if you don’t do anything to tackle employee engagement?

We believe that the negative impact of doing nothing to address poor employee engagement far outweighs the positive impact of taking action because the risks of the former are so frightening.  And it largely comes down to money.

A recent piece of research found that the average cost of replacing an employee in a business is £30,614. This “cost” comes from:
– The dip in productivity while person leaving works their notice
– Recruitment fees to replace a staff member
– Onboarding and training costs to get the new team member up to speed
– Any drop in revenue caused by a gap in resourcing

Given that employee engagement impacts staff turnover so heavily, this is a cost that can be largely avoided by stepping up employee communications and interaction.

But that’s not the only financial risk. There are also associated costs from other outcomes of poor employee engagement, namely absenteeism, low productivity and reputational damage. We’ve outlined them all in our recent piece on the cost of poor employee engagement. It makes for uncomfortable reading, you have been warned!

So if employee engagement really is this important, what can you do?

As mentioned above, no two businesses are the same so while we have a lot of guides you can follow to improve your employee engagement yourself, the easiest step you can take is to find an employee engagement platform that will do the job for you. StaffCircle’s app-based system means your company news, brand values, staff performance records and other information is easily accessible to all from a mobile phone, PC, laptop or tablet.

Get in touch for a free demo today and see you business transform before your eyes.