Engaged employees are those who give more to the organization. One can recognize such an engaged employee by how invested, inspired, and passionate they are at their jobs.

According to a meta-analysis by Gallup, organizations with higher levels of employee engagement experienced a 21% rise in productivity. This underscores the importance of employee engagement and why organizations should prioritize it.

So let's have a closer look at what employee engagement is, and how organizations can enhance engagement at the workplace.

What is Employee Engagement?

Employee engagement is defined as the amount of commitment and dedication that an organization's employees have towards their jobs.

And according to Gallup, employee engagement is defined as the involvement and enthusiasm of employees in their work and workplace.

Employees who are highly engaged make full use of their energy, which means they willingly go beyond what is required of them in their position.

These are the kind of employees who genuinely want to advance the business, which means they deliver excellent work and are motivated to constantly improve themselves as well.

A highly engaged employee is one who offers to show brand-new employees around the workplace, the one who would stay late to complete a task, and lend a helping hand at work events even during off hours.

Why is Employee Engagement Important?

Retaining employees is one of the biggest challenges faced by the vast majority of organizations. A recent study of over 600 American firms with 50 to 500 workers found that 63.3% of businesses believe that keeping employees is more difficult than finding new ones.

So that's why, it is necessary to keep your people engaged and happy at the workplace.

Employee engagement also translates into other areas that directly and indirectly contribute to organizational performance and success. Organizations with good engagement experience the following outcomes.

  • Improved workplace culture
  • Enhanced satisfaction
  • Lowered staff turnover (High retention rates)
  • Better productivity and performance
  • Improved client relationships
  • Positive influence on business profits

All these outcomes are what highly successful organizations have experienced. Hence, it is necessary for organizations to prioritize employee engagement, as it is key to creating positive work cultures and contributing to organizational success.

Your People are your Biggest Assets - Help Engage Them With ThriveSparrow

Through real-time feedback and sentiment analysis, get actionable insights to improve workplace performance and culture - like all the best managers.

Features:

  • AI-driven sentiment analysis: Pinpoints employee mood, enabling managers to take timely actions for engagement improvement.
  • Customizable surveys: Provides tailored feedback collection, improving survey response relevance and actionability.
  • Interactive heatmaps: Highlights engagement trends, helping target specific areas for organizational improvement.
  • Anonymous feedback: Encourages honesty, leading to more authentic insights and effective action plans.
ThriveSparrow Engagement Software
ThriveSparrow Engage

Use this free employee engagement survey template to collect responses and get access to the above reports.

Sign up for a free trial and explore ThriveSparrow to its fullest. Start engaging your workforce today.

Benefits of Employee Engagement

Engaged employees benefit the organization in several ways, few being:

1. Engagement of employees improves results 

A Gallup study shows that companies that have more engaged workers perform better than those that don't. The following findings were discovered by contrasting business divisions that show an increased degree of involvement with those that don't. According to its survey on staff engagement, with motivated workers:   

  • The work output will rise by 14%
  • 10% rise in customer reviews
  • 18% more revenue growth 
  • An increase in income by 23% 
  • Organizational involvement is boosted by 13%

2. Business divisions that are engaged are more successful.

The behavior of highly engaged company divisions result in 21% higher profitability, according to a Gallup survey. As per the same study, employees that are engaged are less likely to quit their jobs. 

According to the article, extremely engaged business departments achieve "59% fewer resignations" in organizations with high turnover rates and "24% fewer resignations" in organizations with low turnover rates.

3. Engaged organizations experience reduced absenteeism

Highly engaged workplaces experience 41% lower absenteeism. Engaged employees are 87% less likely to leave their job voluntarily.

4. More innovativeness and creativity

Engaged employees are more likely to share ideas and think creatively.

5. Improved workplace safety

Engaged employees are shown to be more active and vigilant, leading to 70% fewer safety accidents.

6. Greater organizational alignment

Engaged employees are strongly aligned with the goals of the organization. They better understand the organization's mission, values, and goals.

7. Improved customer service

Engaged employees, especially in customer-facing roles are linked to better customer service outcomes. Highly engaged business units report a 10% increase in customer ratings, and an 18% increase in sales.

8. Enhanced brand advocacy

Engaged employees feel empowered and proud to work for their employers, thereby becoming brand ambassadors and enhancing the employer brand.

9. Better collaboration and teamwork

Engaged employees are good collaborators and excellent team players.

10. Higher job satisfaction

Since most professionals work on an average of 40 hours per week, it can be concluded that job satisfaction is closely tied to employee engagement.

11. Maintaining good relationships

When employees are engaged, they develop healthier and stronger relationships with others.

12. Positive organizational culture

47% of employees seeking new jobs cite poor company culture as the main reason for leaving. Engaged employees contribute to a positive work culture, ensuring a more productive and harmonious environment.

13. Improved mental health and well-being

Engagement in the workplace is associated with better mental health and a lower risk of burnout, contributing to greater overall employee well-being.

What are the Different Levels of Employee Engagement?

According to Gallup's framework, there are three distinct levels of employee engagement.

Understanding these levels allows for better addressal of engagement needs across the organization.

Employee Engagement Levels
3 Levels of Employee Engagement
  1. Actively engaged: These employees are highly motivated, productive, and committed to their roles. You can identify engaged employees with traits like showing initiative, determination, and having a strong work ethic.
  2. Not engaged: This level represents employees who have a neutral or indifferent attitude towards their job and the company. They lack initiative, don't offer suggestions for improvement, and are resistant to change, often maintaining the status quo.
  3. Actively disengaged: Employees in this category are mostly considered to be disengaged at work. They may express their dissatisfaction openly, undermine their teams and managers, and even actively seek employment elsewhere.

What Drives Employee Engagement?

There are 12 drivers of employee engagement -

  • Recognition
  • Professional Development
  • Autonomy
  • Sense of Purpose
  • Work-Life Balance
  • Good Leadership
  • Job Security & Stability
  • Team Dynamics
  • Strong Company Culture and Values
  • Employee Wellness Programs
  • Innovation
  • Employee Voice.

These drivers may seem subjective in nature, nevertheless, they play a huge role in positively affecting and contributing towards engagement.

Taking these aspects into consideration and adding them to your engagement action plans will provide a more comprehensive view of what drives employee engagement and how you can leverage this to foster a more motivating and supportive work environment.

Who is Responsible for Employee Engagement?

Everyone in an organization has a role to play in promoting and driving engagement.

While management and HR set the tone for engagement, employees too have a role to play. Their engagement contributes to the current work culture, which in turn affects the engagement of other employees in the organization.

Here's a short breakdown of the different stakeholders responsible for driving engagement.

  1. Senior Executives
  2. Managers
  3. HR
  4. Individual employees
Various Employee Engagement Roles

Senior executives

Senior leaders set the organizational culture's tone. They communicate the company's goals and vision, ensuring alignment across all levels. They are responsible for allocating necessary resources, and championing programs focused on recognition and rewards. This reinforces a culture of appreciation that values employee contributions and achievements.

Managers

Managers have a direct influence on their teams' daily experiences. They set clear, measurable, and achievable goals, creating a roadmap for success. By promoting a healthy work-life balance and providing constructive feedback and recognition, managers play a key role in maintaining employee morale and motivation.

HR

HR refine and maintain the company culture. They drive engagement initiatives and act on employee feedback to continually improve the workplace. HR is also responsible for hiring the right people and providing ongoing training and development opportunities. This ensures that employees are skilled, satisfied, and aligned with the company's values and objectives.

Employees

At the individual level, employees have a significant responsibility in shaping their engagement. Taking ownership of their work, approaching tasks with a positive mindset, and being adaptable and open to change are key. Employees can only contribute to the overall environment by providing honest, transparent feedback and actively participating in problem-solving. They shouldn't just fulfill job requirements but also be proactive and invest their all towards the organization's goals.

What is an Employee Engagement Model and Why is it Important?

Employee engagement models are essentially frameworks that are used by businesses to identify and assess the various factors affecting engagement.

These models are crucial as they help identify the key drivers of engagement like we saw earlier.

Assessing these drivers helps businesses tailor their employee engagement strategies, which in turn boosts morale, increases productivity, and reduces turnover.

Here are 4 popular employee engagement models that you can use as a framework to guide your employee engagement action plans.

Employee Engagement Models

1. Maslow’s Hierarchy of Needs

This model adapts Maslow’s classic psychological framework to the workplace. It suggests that employee engagement improves when organizations meet employees’ needs in a specific order—starting with basics like job security and fair pay, and moving up to higher needs like recognition, growth, and purpose. The more levels you fulfill, the more engaged your people become.

5 - Self Actualization is the highest part of the hierarchy and it is where an individual can reach his full potential.

2. Aon Hewitt Engagement Model

The Aon Hewitt Model connects employee engagement directly to business results. It emphasizes three key drivers: leadership, performance enablement, and rewards. When these are aligned, companies tend to see lower turnover, higher customer satisfaction, and better financial performance. It’s all about linking engagement efforts to measurable impact.

3. Gallup Q12 Model

Gallup’s model is built around 12 core questions (the Q12) that help assess how engaged employees feel.

These questions explore areas like expectations, recognition, development, and team relationships. The model highlights the manager’s role as a key factor—suggesting that how managers lead has a direct impact on how motivated and connected employees feel.

4. Zinger Engagement Model

Developed by David Zinger, this model focuses on the human side of engagement—especially relationships and recognition. It uses a pyramid structure that starts with building trust and moves up toward achieving meaningful results. The idea is that when employees feel personally connected, valued, and supported, their engagement naturally grows.

5 Ways to Improve Employee Engagement

Many businesses mistakenly believe that the products they provide are their greatest asset when, in fact, their employees are the ones that keep the engines going.

Here are 5 ways to enhance your employees' engagement to help maximize your engagement efforts and create a vibrant and productive workplace where employees feel truly valued and connected to their work.

1. Show Genuine Care for Your People

Employees don’t engage with companies — they engage with people who care. When leaders take time to show real concern for their team’s well-being — beyond just hitting targets — it builds trust and loyalty. Whether it’s supporting work-life balance, checking in during tough times, or simply being human, this care creates a ripple effect. Teams that feel cared for are more likely to care for each other, take pride in their work, and go the extra mile.

2. Keep the Conversation Going

Don’t wait for annual reviews to check in. Keep the lines of communication open with regular touchpoints — casual chats, one-on-ones, or even short pulse surveys. Ask how things are going: Are they enjoying their work? Do they feel supported? Is anything getting in their way?

When employees feel heard, they’re far more likely to be honest, engaged, and invested. Just make sure feedback doesn’t disappear into a void — act on what you hear.

3. Be a Mentor, Not Just a Manager

Great leaders don’t micromanage — they coach. Guide your team, offer feedback, and invest in their growth. Whether it’s helping someone improve a skill or giving them space to lead a project, these small gestures add up.

Employees who feel supported and encouraged are more motivated, more loyal, and more likely to stick around. When managers lead with mentorship, the whole team levels up.

4. Invite Their Ideas — and Really Listen

People want to be part of something bigger. And that means more than just following instructions. Give your team room to share their ideas, propose new approaches, and problem-solve. Even if an idea doesn’t work, respond with respect and explain why. That transparency builds confidence.

If people feel their voice doesn’t matter, they’ll stop using it. But when they’re empowered to contribute, you unlock creativity, innovation, and ownership.

5. Celebrate the Wins — Big and Small

Recognition is fuel. Apart from good leadership, recognition is one of the biggest factor contributing to employee engagement.

A quick “thank you” or a shoutout during a team meeting can go a long way. Whether someone landed a big deal, helped a teammate, or simply handled a challenge with grace, acknowledge it. Celebrate personal milestones, too.

Recognition builds morale and reminds employees they’re seen and appreciated. The more specific and timely the praise, the more meaningful it feels.

This is something you can do on ThriveSparrow.

Spot Recognition on ThriveSparrow
Peer recognition on ThriveSparrow. Appreciate your peers, reportees, and direct reports right from Slack and/or MS Teams

Bottom line? Engaged employees don’t happen by accident. They’re the result of intentional, people-first leadership. Start with these five steps and watch your culture thrive.

9 Ways to Measure Employee Engagement

Organizations with strong employee engagement and “Great Place to Work” certification use a variety of methods to measure and assess engagement levels, which then inform their action plans. Some of them are:

  1. Employee engagement surveys: Engagement surveys help to gather feedback on various aspects like job satisfaction and workplace culture. While informative, these surveys might not always capture the complete picture due to potential biases.
  2. Pulse surveys: Frequent, short surveys assist HRs with regularly checking in on their employees' sentiments. Pulse surveys are short and simple which usually garners higher response rates, offering a quick pulse on engagement levels.
  3. Focus Groups: Focus groups are small group discussions to gain deeper, qualitative insights into employee experiences and perceptions. This method helps identify areas needing improvement in engagement.
  4. Individual meetings: Personal interviews with employees can reveal unique insights into engagement levels and identify developmental opportunities. These one-on-one interactions foster a personal connection to the company.
  5. 360-degree feedback: Collecting feedback from various sources around an employee, such as managers, peers, and subordinates, gives decision-makers a well-rounded view of organizational engagement.
  6. Social media analysis: Monitor employee behavior and sentiments on company social media platforms for additional insights into engagement.
  7. Employee Net Promoter Score (eNPS): eNPS surveys measures how loyal your employees are towards your company. These employee net promoter score aids organizations with measuring each employees' likelihood to recommend the company to others.
  8. Exit surveys: These surveys provide valuable feedback from departing employees to help understand their reasons for leaving and engagement levels, which they might not disclose while still employed.
  9. Recognition Programs: Through employee recognition programs, you can track participation to assess engagement.

5 Best Employee Engagement Software for Enhancing Engagement

Here are 5 of the best employee engagement software that you can use to bolster engagement at the workplace, and contribute to a more dynamic and thriving workforce.​

1. ThriveSparrow

This platform is designed for HR professionals, focusing on revitalizing workplace culture and employee satisfaction. It offers two modules, Kudos and Engage, which foster a culture of appreciation and provide insights into employee needs and sentiments. Key features include engagement surveys, anonymous feedback, and dynamic heatmaps.

2. Workvivo

An employee experience platform that enhances communication and engagement. Its features include public shout-outs, collaborative spaces, personalization, and surveys to gauge organizational engagement.

3. Lattice

A people management platform that integrates performance and engagement metrics. It offers pulse surveys, automated surveys, eNPS surveys, and an Engagement-Analytics module for in-depth insights.

4. Motivosity

This tool focuses on the employee experience journey and offers the Thanks Matter Card for employee rewards. Its features include eNPS tools, custom surveys, integrations with daily applications, and a unique MV6 culture measurement tool.

5.Work Tango

A comprehensive platform for transforming company culture and engaging workforces. It provides customizable surveys, AI-driven employee engagement insights, social recognition features, and automated celebration reminders.

Level Up Your Employee Engagement Efforts with ThriveSparrow

If you are looking for a business solution that could reduce a great load from your shoulders and guide you in the right direction when it comes to employee engagement, then ThriveSparrow is the best place for you!

ThriveSparrow is an employee success platform that helps HRs enhance and refine their employees' engagement.

ThriveSparrow Engagement Software
An overview - ThriveSparrow Engagement Software

You can faciilitate peer-to-peer recognition, and conduct a variety of employee surveys like engagement, pulse, and eNPS surveys. The key insights you'll get through these surveys will help you make your workplace one where nobody would think of leaving.

Book your free demo, and we'll show you how to start enhancing engagement at the workplace instantly. Take the first step towards a more engaged workforce.

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