Understanding the Importance of Employee Engagement for Business Success

The Triple Bottom Line in business extends beyond profits to include social and environmental considerations. One of the most critical non-financial components is human capital — employees. A successful organization depends on its people thriving both professionally and personally. When companies invest in employee development and well-being, they foster a more productive, loyal, and satisfied workforce. 

For business professionals, understanding how to foster employee engagement is a vital leadership skill that can drive long-term organizational success. 

The State of Employee Engagement

According to Gallup, only 31% of U.S. employees reported being engaged in their work in 2024 – the lowest level in a decade. Meanwhile, 17% of employees were actively disengaged, reflecting levels not seen since 2014. These numbers point to a growing disconnect between employees and their organizations, especially among younger workers under the age of 35. 

Disengaged employees can have a profound negative impact on workplace morale, productivity and profitability. They are more likely to leave, underperform, and contribute to a less cohesive company culture. As a result, engagement has become a key focus for forward-thinking business leaders. 

Understanding the Importance of Employee Engagement

Companies that prioritize employee engagement enjoy a range of business benefits, including: 

• Improved customer satisfaction and loyalty 

• Higher employee retention 

• Increased productivity 

• Greater adherence to company standards and values 

• Lower turnover and reduced training costs 

• Stronger workplace relationships and morale 

In today’s competitive job market, employees are looking for more than just compensation – they want to feel valued, heard and connected to their company’s mission. 

Core Components of an Employee Engagement Strategy

A strong employee engagement plan takes a holistic approach to supporting team members both in and out of the office. Key elements of an effective strategy include: 

• Ongoing training and development opportunities 

• Equal access to tools and resources 

• Comprehensive health and wellness benefits 

• Paid time off, retirement plans and financial support programs 

Investing in these areas demonstrates a commitment to employee well-being, which in turn boosts engagement and job satisfaction. 

Tips for Measuring Employee Engagement

Understanding how employees feel about their work is the first step to improving engagement. Here are several proven methods for assessing engagement levels: 

1. Employee Surveys

Regular pulse or annual surveys can provide valuable quantitative data. Questions might include: 

• Do you know what’s expected of you at work? 

• Do you feel your opinions are valued? 

• Are you equipped with the tools and resources you need? 

• Does the company's mission align with your work? 

• Do you have opportunities for growth? 

• Have you been recognized for your contributions recently? 

• Do you have positive relationships with coworkers? 

• Has someone discussed your progress with you recently? 

• Have you developed new skills in the past year? 

2. Focus Groups

Facilitated discussions allow employees to share thoughts and concerns in a more open-ended format, providing context that surveys may miss. 

3. Social and Internal Community Analysis

Monitoring internal communication platforms and external social channels can help gauge sentiment and engagement in real-time. 

4. Anecdotal and Informal Feedback

Everyday conversations and one-on-one interactions with managers can reveal hidden insights into the employee experience. 

Improving Employee Engagement Through Action

Measuring engagement is only part of the equation. Acting on that data is where transformation begins. Employers should: 

• Listen actively and respond to employee feedback. 

• Share business goals and demonstrate how each role contributes to the bigger picture. 

• Create clear career paths and provide opportunities for advancement. 

• Use exit interviews and performance reviews to inform engagement strategies. 

By aligning organizational goals with employee needs, companies can create a culture where people feel empowered and motivated to perform at their best. 

Develop Leadership Expertise with an MBA

Business leaders who want to make a lasting impact on employee engagement and organizational success can benefit from advanced management education. 

The Master of Business Administration (MBA) program at The University of Scranton equips professionals with the tools to lead people and processes more effectively. With flexible online and on-campus options, it’s ideal for those focused on enhancing workforce development and business performance while not interrupting their existing career. The program offers several specialization options, including human resources management, which equips professionals to foster a culture of positive employee engagement. 

Through a curriculum rooted in ethical leadership and strategic thinking, students gain a deeper understanding of how to align employee engagement with business objectives — making them more effective managers and change agents in today’s complex work environment. 

Elevate Your Impact as a Business Leader

Fostering a culture of engagement is no longer optional – it's essential for organizational growth and employee satisfaction. By understanding what drives engagement and implementing strategies to support it, business leaders can unlock the full potential of their teams. 

If you're ready to take the next step in developing the leadership and management skills needed to create lasting impact, learn how The University of Scranton can help you lead with purpose and confidence. 

Explore the MBA program today!