The Link Between Employee Engagement and Performance

LAUREN O'DONNELL

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LAUREN O'DONNELL

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Is there a link between employee engagement and their performance?

In our recently published Singapore Insights Report, we cited that creating a great workplace for all is a call to lead so that an organization brings out the best in all its employees, no matter who they are or what they do for the organization.

It boils down to trust. We help organizations quantify their culture and produce better business results, by creating a high-trust work experience for all employees.

In this article, we dive in to 4 areas where employee engagement has the greatest influence.

Why Employee Engagement Really Matters

Employee engagement needs to go beyond a cool-looking foosball table in the break room, or shiny incentives like flexible work hours or bringing your dog to work. Employees who are truly engaged will be motivated to do their best work every day and stay with a company who is taking employee engagement seriously.

For engaged employees who are happy and completely committed to their work, it’s more than just a paycheck – it’s the dedication towards their employers and role that makes them passionate about their work, which is often reflected in their individual outcomes.

While employee engagement focuses on employee happiness, satisfaction, and well-being, employee engagement programs are also closely tied to tangible metrics like retention, turnover, absenteeism, profit, and productivity.

Employee engagement can have a significant impact on a business’ performance. Below we dive into 4 areas where it has the greatest influence.

Greater Innovation

When you gather a company’s values and behaviors together, you get its company culture. At a high-level, you can describe different cultures in a single word.
That word may be “competitive”, “high-performance”, “customer-centric”, “sales-driven”. The list goes on and on.

In any case, an organization’s culture is indicative of a few key factors:

• Which behaviors lead to promotions, raises, and recognition for employees
• Where senior leadership invests most of the organization’s resources (e.g. operations, product development, sales, customer service)
• Whether employees believe their time at a specific organization is an integral part of achieving their life goals or just a paycheck until a better opportunity comes up
• How individuals within the organization approach specific business, product, and customer problems
• Whether employees feel comfortable enough to pursue innovative projects and solutions and challenge the status quo

When there’s a positive company culture that gives a microphone to different voices, encourages innovative projects (even when success isn’t guaranteed), and gives employees the tools they need to succeed, employees are more engaged.

A Great Place To Work-Certified Company, TC Acoustics, has 100% of their employees say ‘People here are willing to give extra to get the job done’. They value the voice of their people whatever the seniority or position.

“What do you think?” is a common question in every meeting we are in. From the newest & youngest to the most senior & experienced – everyone’s ideas are always heard. When I was a university intern here, I sat in for Senior Management meetings, and was encouraged to speak up. To my surprise, my ideas were implemented! I thank God I get to work in a company where my ideas are heard and my passions are valued.

Fanny Ko, Senior Marketing Manager, TC Acoustic

 

 

 

Boosted Productivity

By now we’ve established that engaged employees are happy, invested in the success of the company, and motivated by the company’s work and mission, but how does this lead to greater productivity?

In the knowledge economy, the most significant inputs are people (aka their skills) and time. Engaged employees want to discuss projects with colleagues, make connections with others in the organization, and spend time solving interesting problems. When you’re interested in the work that you’re doing, it’s easier to stay on task.

As a result, the time that the organization invested in is spent on work-related tasks rather than non-work tasks. In addition, engaged employees are healthier and happier. This means they have lower rates of absenteeism or presenteeism (being physically present at work but not mentally productive due to illness, exhaustion, or low morale).

Information Technology Company Coda Payments, a trusted source of games and in-game currencies for millions of gamers worldwide, helps digital content providers monetize their products and services in more than thirty markets.

Their Vice President of International, David Grainger believes that they have “a uniquely vibrant, positive, down-to-earth culture that is not common and should be cherished.”

95% of Coda Payments Employees say Management’s actions match its words. Learn more about them.

 

Reduced Turnover

Employee turnover costs organizations a lot of time and money. It can cost a significant portion of a worker’s annual salary just to replace them. Turnover also affects the productivity of the other people on your team. While you’re looking for a replacement, other employees have to compensate for the missing employee by adding their tasks to their workload.

And if it’s a small team, that work may disproportionately fall on the shoulders of one employee. If this isn’t handled properly, it can impact the employee satisfaction and engagement of your other employees creating a dangerous domino effect. Employee engagement important for reducing turnover and improving retention rates but you might be wondering why.

First, consider what makes people want to leave an organization:

• Lack of opportunities for upskilling and professional development
• Unclear career progression plan or career trajectory within the company
• Poor relationship with manager that lacks trust, support, and open communication
• Feeling overworked and underappreciated
• Micromanagement from managers and minimal role autonomy
It’s interesting considering that the best drivers of employee engagement are:
• Skills training and professional development opportunities
• Clear career progression plan and achievement milestones
• Managers who provide constructive feedback, solicit feedback, and listen to employees’ needs and aspirations
• Managers that appropriately distribute workloads and recognize and reward outstanding employees
• Work environments that gives employees the freedom to work in the way that’s best for them

In other words, the benefit of employee engagement is its ability to address the factors that make employees want to leave.

And by addressing these factors, employers reduce their turnover rate.

Increased Customer Satisfaction

You know what they say: Happy employee’s equal happy customers. In today’s hyper-fragmented market, this is more important than ever. Companies have a lot working against them like fickle customers, countless competitors offering similar products and services, and a generation of consumers accustomed to customization and personalization.

As a result, the best way to compete is by offering outstanding customer service. Organizations today need to make customers feel special by cultivating a company-customer relationship that doesn’t feel transactional. Of course, companies are complex organizations and it’s difficult to have one-on-one interactions with every customer. To solve this problem, companies have invested in technology to seamlessly interact with customers across multiple digital platforms.

That said, while these help facilitate interactions, they can’t replace quality human interactions. And no amount of technology can simulate engaging and compassionate customer service representatives. An engaged workforce that feels respected, appreciated, and recognized feels the need to go the extra mile for customers. They aren’t simply going through the motions. They show empathy, actively listen to customer problems, and proactively seek solutions. As a result, they turn even the most contentious customer interactions into positive experiences.

In their survey results, Information Technology Company, BitTitan SG Pte Ltd has 98% of their employees saying “People here are willing to give extra to get the job done” yet 98% of their employees also say “This is a fun place to work”.

 

“Workplaces are never about buildings or amenities. Workplaces are the people. Our employees define who we are and are the primary drivers to the success we build. We are not surprised that BitTitan SG has been certified as a ‘Great Place to Work®.’ We are labelled as such because our people made it so.”

Geeman Yip, CEO, BitTitan SG Pte Ltd

 

 

 

 

The Bottom Line

When employees feel like their organization is investing in them, they match that investment by looking for ways to improve the organization, too. This is a big reason why employee engagement is important. It creates a culture of continuous improvement.

When employees believe that their opinions are welcome and their efforts will be recognized, they’re eager to look for areas where they can improve processes and add value.

Your organization can only thrive if your employees are consistently performing at their best. The key to ensuring that this happens is to strike the right balance between employee engagement and a positive workplace culture. You can’t have one without the other.

Through a strategic partnership, we can help you raise engagement levels — and improve business outcomes.

 

About Great Place To Work®

Great Place to Work® is the Global Authority on Workplace Culture. We make it easy to survey your employees, uncover actionable insights and get recognized for your great company culture.

Be part of our lists. Learn more about Great Place To Work Certification.

LAUREN O'DONNELL

Great Place To Work identifies Best Workplaces in Asia™ by surveying 2.1 million employees in Asia and the Middle East about the key factors that create great workplaces for all and analyzing company workplace programs impacting 5.9 million employees in the region.

To be considered, companies must first be identified as outstanding in their local region by appearing on one or more of our Best Workplaces lists in Bahrain, Greater China (including China, Hong Kong and Taiwan), India, Indonesia, Japan, Kuwait, Oman, Philippines, Qatar, Saudi Arabia, Singapore, South Korea, Sri Lanka, UAE, Vietnam during 2022 or early 2023.

Companies rank in three size categories: Small and Medium (10-499 employees); Large (500+); and Multinational. Multinational organizations are also assessed on their efforts to create great workplaces across multiple countries in the region. They must appear on at least two national lists in Asia and the Middle East and have at least 1,000 employees worldwide with at least 40% (or 5,000+) of those employees located outside the headquarters country.

Great Place To Work identifies Best Workplaces in Asia™ by surveying over 1 million employees in Asia and the Middle East about the key factors that create great workplaces for all and analyzing company workplace programs impacting over 4.7 million employees in the region.

To be considered, companies must first be identified as outstanding in their local region by appearing on one or more of our Best Workplaces lists in Greater China (including China, Hong Kong and Taiwan), India, Indonesia, Japan, Kuwait, Philippines, Qatar, Saudi Arabia, Singapore, South Korea, Sri Lanka, UAE, Vietnam during 2021 or early 2022.

Companies rank in three size categories: Small and Medium (10-499 employees); Large (500+); and Multinational. Multinational organizations are also assessed on their efforts to create great workplaces across multiple countries in the region. They must appear on at least two national lists in Asia and the Middle East and have at least 1,000 employees worldwide with at least 40% (or 5,000) of those employees located outside the headquarters country.

Great Place To Work® Best Workplaces™ in Singapore 2023 Evaluation Methodology

This year, Great Place To Work® Singapore is proud to launch our inaugural Singapore Best Workplaces™ in Healthcare & Biopharma List. This list recognizes exemplary companies in the healthcare & biopharma industry.

Recognized as a global hub for medical technology and research, Singapore has attracted top healthcare and biopharma talents and companies from around the world. It has become the center for essential healthcare services and innovations with its world-class research institutes, academic medical centers, and industry clusters.

In turn, the healthcare and biopharma sectors play a critical role in the country’s economic competitiveness, sustainability, and innovation. These industries have significantly helped in the overall improvement of public health and well-being of the people of Singapore and its neighboring countries.

The inaugural Singapore Best Workplaces in Healthcare and Biopharma List puts the spotlight on the organizations that are dedicated to providing employee satisfaction and engagement, and their commitment to excellence in the industry.

The companies in our Great Place To Work Certified™ community have the premier distinction that helps attract the best talent, build your employer brand, and secure a competitive advantage. To achieve this, they built a working environment that is purpose-driven and people-first. These companies have demonstrated that showing authentic care, prioritizing employee’s holistic well-being, and building a culture of trust go hand in hand with growth and success.

To determine the 2023 Singapore’s Best Workplaces in Healthcare and Biopharma, Great Place to Work®️ analyzed confidential survey feedback representing nearly 12,000 employees working in the tech industry in Singapore.Employees responded to over 60 survey questions describing the extent to which their organization creates a Great Place to Work For All™️. Eighty-five percent of the evaluation is based on what employees say about their experiences of trust and reaching their full human potential as part of their organization, no matter who they are or what they do. Great Place to Work analyzes these experiences relative to each organization’s size, workforce make up, and what’s typical relative to their peers in the industry.The remaining 15 percent of the rank is based on an assessment of all employees’ daily experiences of innovation, the company’s values, and the effectiveness of their leaders, to ensure they’re consistently experienced.To be considered, companies had to meet the Great Place to Work-Certified standard. To ensure survey results truly represent all employees, Great Place to Work requires that Trust Index©️ survey results are accurate to a 95% confidence level with a 5% margin of error or better. We review any anomalies in survey responses, news and financial performance to ensure there aren’t any extraordinary reasons to believe we couldn’t trust a company’s survey results. Companies with 10 to 99 people were considered for the small and medium category; companies with 100 employees or more were considered for the large category.

Great Place To Work® Best Workplaces™ in Singapore 2023 Evaluation Methodology

To determine the 2023 Singapore’s Best Workplaces in Technology, Great Place To Work®️ analyzed confidential survey feedback representing nearly 12,000 employees working in the tech industry in Singapore. Employees responded to over 60 survey questions describing the extent to which their organization creates a Great Place To Work For All™️. Eighty-five percent of the evaluation is based on what employees say about their experiences of trust and reaching their full human potential as part of their organization, no matter who they are or what they do. Great Place To Work analyzes these experiences relative to each organization’s size, workforce make up, and what’s typical relative to their peers in the industry. The remaining 15 percent of the rank is based on an assessment of all employees’ daily experiences of innovation, the company’s values, and the effectiveness of their leaders, to ensure they’re consistently experienced. To be considered, companies had to meet the Great Place To Work-Certified standard. To ensure survey results truly represent all employees, Great Place To Work requires that Trust Index©️ survey results are accurate to a 95% confidence level with a 5% margin of error or better. We review any anomalies in survey responses, news and financial performance to ensure there aren’t any extraordinary reasons to believe we couldn’t trust a company’s survey results. Companies with 10 to 99 people were considered for the small and medium category; companies with 100 employees or more were considered for the large category.

Methodology

This year, Great Place To Work™ Singapore is proud to launch our inaugural Singapore Best Workplaces in Technology List. This List recognizes exemplary companies in the information and communication technologies industry in four categories:

  • Micro category (10–29 employees)
  • Small (30-99 employees)
  • Medium (100-999 employees)
  • Large (> 1000 employees)

With Singapore’s ambition to be recognized as a regional technology hub, the influx of technology firms (around 80 of the world’s top 100 technology firms have a presence here) and global rankings that place us a leading technology hub outside of San Francisco, the establishment of a Singapore Best Workplaces List in Technology is indeed a timely and needed one. Technology firms in Singapore are characterized by hyper-growth and ambitious expansion plans. This means a continuous war for talent in a highly competitive and rapidly evolving industry.

To maintain our lead as a technology and innovation hub, the ability to attract, retain and sustain skilled talent is critical. We are proud that companies in our Great Place To Work®-Certified community List have built a high-trust culture, engaged employees and maximized their potential to facilitate innovation. They are purpose-driven and adopt a people-first mindset. These are companies that have shown that authentic care and employee well-being need not be compromised for ambitious growth, and that it is possible for businesses to scale up quickly and responsibly. Their culture and core values are embodied in every individual—from senior leadership to rank-and-file employees—and differentiate them from their competitors, priming them to be powerful magnets for top talent.

To determine the 2022 Singapore’s Best Workplaces in Technology, Great Place To Work®️ analyzed confidential survey feedback representing nearly 12,000 employees working in the tech industry in Singapore.Employees responded to over 60 survey questions describing the extent to which their organization creates a Great Place To Work For All™️. Eighty-five percent of the evaluation is based on what employees say about their experiences of trust and reaching their full human potential as part of their organization, no matter who they are or what they do. Great Place To Work analyzes these experiences relative to each organization’s size, workforce make up, and what’s typical relative to their peers in the industry.The remaining 15 percent of the rank is based on an assessment of all employees’ daily experiences of innovation, the company’s values, and the effectiveness of their leaders, to ensure they’re consistently experienced. To be considered, companies had to meet the Great Place To Work-Certified standard. To ensure survey results truly represent all employees, Great Place To Work requires that Trust Index©️ survey results are accurate to a 95% confidence level with a 5% margin of error or better. We review any anomalies in survey responses, news and financial performance to ensure there aren’t any extraordinary reasons to believe we couldn’t trust a company’s survey results. Companies with 10 to 99 people were considered for the small and medium category; companies with 100 employees or more were considered for the large category

 

Methodology

To determine the 2022 Singapore’s Best Workplaces™️, Great Place To Work®️ analyzed confidential survey feedback representing close to 70,000 employees across different industries in Singapore. Employees responded to over 60 survey questions describing the extent to which their organization creates a Great Place to Work For All™️. 85% of the evaluation is based on what employees say about their experiences of trust and reaching their full human potential as part of their organization, no matter who they are or what they do.

Great Place To Work analyzes these experiences relative to each organization’s size, workforce make up, and what’s typical in their industry. The remaining 15% of the rank is based on an assessment of all employees’ daily experiences of innovation, the company’s values, and the effectiveness of their leaders, to ensure they’re consistently experienced. To be considered, companies had to meet the Great Place To Work Certified standard. To ensure survey results truly represent all employees, Great Place To Work requires that Trust Index©️ survey results are accurate to a 95% confidence level with a 5% margin of error or better. We review any anomalies in survey responses, news and financial performance to ensure there aren’t any extraordinary reasons to believe we couldn’t trust a company’s survey results.

Companies with 10-29 people were considered for the Micro category; those with 30 to 99 people for the Small category; companies with 100 to 999 employees were considered for the Medium category; and those with 1,000 or more for the Large category.

Great Place To Work® Best Workplaces™ in Singapore 2023 Evaluation Methodology

To determine the 2023 Singapore’s Best Workplaces in Technology, Great Place To Work®️ analyzed confidential survey feedback representing nearly 12,000 employees working in the tech industry in Singapore. Employees responded to over 60 survey questions describing the extent to which their organization creates a Great Place To Work For All™️. Eighty-five percent of the evaluation is based on what employees say about their experiences of trust and reaching their full human potential as part of their organization, no matter who they are or what they do. Great Place To Work analyzes these experiences relative to each organization’s size, workforce make up, and what’s typical relative to their peers in the industry. The remaining 15 percent of the rank is based on an assessment of all employees’ daily experiences of innovation, the company’s values, and the effectiveness of their leaders, to ensure they’re consistently experienced. To be considered, companies had to meet the Great Place To Work-Certified standard. To ensure survey results truly represent all employees, Great Place To Work requires that Trust Index©️ survey results are accurate to a 95% confidence level with a 5% margin of error or better. We review any anomalies in survey responses, news and financial performance to ensure there aren’t any extraordinary reasons to believe we couldn’t trust a company’s survey results. Companies with 10 to 99 people were considered for the small and medium category; companies with 100 employees or more were considered for the large category