Employee Engagement and Performance: Are they Correlated?

When employees feel heard and important at their workplace, it is obvious for
them to keep themselves productively engaged with their work. This in turn
helps to push up their employee engagement and performance bar.

According to a survey, organizations that have implemented employee
engagement activities on a regular basis have 40 percent more organizational
productivity than in companies where employee engagement is not practiced.

Hence, taking steps to create an engaged workforce is the first step towards
garnering improved employee engagement and performance from their end.

How a highly engaged workforce is an
asset

Higher Retention

Employees, who have a genuine liking towards their job, are definite to show
higher levels of focus, commitment, and engagement. Since they are satisfied
with their work profile, the chances of them sticking around is higher.

Sense of Belongingness

It always helps when the employer and employees come together and decide
to work as a family. When employees feel that their organization is taking care
of them and valuing them, they are sure to experience a sense of
belongingness. This in turn levels up their job engagement.

Regularity

The equation here is simple. When an employee enjoys the work he is
expected to perform each day, he will always look forward to heading to his
workplace. These engaged employees are usually the regular ones.

Loyalty

Employees, who are engaged at work, are more likely to maintain their
loyalties to the organization that they are working. Such employees do not
hesitate to go that extra mile in the interest of their employers.

Improved Employee Health – Physical & Mental

Employees, who are satisfied with their job, have a natural tendency of being
engaged and performing better. This in turn reflects in the form of improved
physical and mental health of the employee.

Happy & Content Employees

Employees, who love their job, are likely to show higher levels of engagement,
productivity, and performance. It is no surprise for such employees to be
happy and content with their work life.
A study conducted by the Addison group suggests that various factors
influence employee engagement, which in turn influences their work
performance. 55% influence is of the job role, 50% of salary, and 39% of the
immediate boss.

The increased importance of Employee
Engagement and its impact on
Performance with the WFH
module/Post-Pandemic Situation:

Disengaged employees make 60% more mistakes as compared to the ones
that are engaged. This leads to a steady drop in their performance levels.

A survey released by Microsoft speaks about the importance of Employee
Engagement in the post-pandemic scenario. Despite being away from their
work desks, if employees can stay engaged, improved work performance can
be guaranteed.
Hence, organizations are coming forward to develop strategies and roll out
methodologies that help to create a workforce, which has a better attention
span, knows what they are doing, does not hesitate to look for guidance, are
learners, and most importantly feels engaged in their work. A direct outcome
of this is improved employee productivity and performance, which also
contributes to enhanced organizational performance.
Howard Schultz, former CEO and Chairman of Starbucks Coffee has quoted
that “To expect employees to be self-motivated, engaged and perform to the
satisfaction of the clients, the organization needs to first stay true to the
expectations of employees and help them to stay engaged and perform well.”.
This holds particularly true in the post-pandemic era, wherein employees are
expected to work away from their office. In the words of Doug Conant,
founder, and CEO of ConantLeadership, “To win in the marketplace, you must
first win in your workplace”. Indeed, very true.
Employee Engagement and Improved Employee Performance are the
stepping-stones to an array of other parameters that directly or indirectly affect
the functioning of an organization.

Performance appraisals are also crucial in backing employee engagement
and ultimately influencing employee performance

Employee Engagement and Performance
Management

In most organizations, there are at least 50% of employees, who believe that
performance management is being carried out accurately and on fair terms.
Organizations that boast of higher performance management experience
employee engagement that is 14% higher than organizations, which overlook
this utility.
Likewise, the performance level of employees working in organizations with a
bent towards the performance management utility is 24% higher when
compared to its counterparts.
As the business environment is evolving and its complexity is witnessing an
upward trend, it has become indispensable for organizations to take
performance management seriously and in turn contribute towards steady
employee engagement and performance.

How employee engagement affects
performance of employees

A study by Gallup had stated that only 33% of employees feel engaged in
their jobs. 52% have gone ahead and declared that they simply show up.
Then there is the remaining 17% that claims to be actively disengaged.
Looking at these figures, one can safely state that it is not only about creating
an engaged workforce. This is not a one-time activity. It is equally important
for employees to be consistently engaged in their work.
This is another vital area, wherein the organization concerned needs to take
active measures to ensure that the level of employee engagement and
performance either remains steady or improves further.

Final Thoughts:

On a concluding note, it can be stated that employee engagement and
performance are linked to one another. This is irrespective of the scale and
nature of the organization that the employee is working.
Rising awareness regarding employee engagement and performance is
pushing organizations to tweak their policies and create a conducive
environment that helps employees to be fully involved in their work and
ultimately outperform themselves in every quarter.
After all, Jim Goodnight, CEO and co-founder of SAS Institute had rightly said,
“Treat employees like they make a difference and they will.”

FAQ

Why is employee engagement important in the post-pandemic WFH scenario?

Employee engagement is crucial in the WFH model because remote work can lead to isolation, reduced motivation, and communication gaps. Keeping employees engaged ensures higher productivity, fewer errors, and better overall performance.

Disengaged employees are more likely to make mistakes—up to 60% more, according to studies. This lack of focus and motivation leads to decreased productivity and negatively impacts the organization’s success.

Yes! By implementing strategies that foster connection, motivation, and learning, companies can significantly improve employee productivity and job satisfaction, especially in remote work settings.

Strategies include fostering open communication, offering regular feedback, recognizing achievements, and creating a supportive work environment that encourages collaboration and growth.

Absolutely. Regular and constructive performance appraisals help employees feel valued and recognized, boosting engagement levels and, consequently, enhancing performance.

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