Employees are called a company's most valuable asset for a reason. Motivated, satisfied staff, productive teams, and a strong sense of identification with the employer have a major impact on a company's success.

We explain the role of employee engagement and provide you with 17 tips on how to specifically foster and improve it.

What is employee engagement?

Employee engagement describes how emotionally connected employees feel to a company and their work, and how committed they are to the success of tasks, projects, and the company as a whole. In concrete terms, this means that motivation is not derived solely from earning a paycheck (viewing the job as a necessary evil to cover expenses), but also from enthusiasm for the work and a desire to achieve goals and move the company forward.

Employee engagement is influenced by a variety of factors, which can be broadly summarized as follows:

• Manager behavior
• Team atmosphere and cohesion
• Career opportunities
• Fulfilling tasks
• Identification with the company and its values

Why is employee engagement so important?

The more motivated and engaged employees are, the more productive and successful a company becomes. While there are many other factors that determine business success, satisfied employees who approach their work with motivation and commitment contribute significantly to it.

Conversely, dissatisfaction, a lack of identification with tasks and the company, and a lack of interest in the company's success and development hinder productivity, lead to poorer results, often result in more sick days, and increase staff turnover. All of these factors cost companies significant money and impact customer satisfaction. In the worst-case scenario, the company develops a poor reputation due to public reviews or even negative PR, making the search for new talent or apprentices difficult.

Employee engagement vs. employee satisfaction

Employee engagement goes beyond mere satisfaction; it measures how deeply employees feel connected to the company and its success. How fulfilling is the work, and how much do employees care about project outcomes? How much motivation and enthusiasm do they bring to the table? Is there a sense of identification with the company and its values, a real bond?

When the employee experience is viewed as a whole, it is referred to as the Employee Experience. The total number of touchpoints between employees and the company is known as the Employee Journey.

All these concepts are closely linked and share the same core goals: to boost employee motivation and, in turn, company success.

Promoting employee engagement

Employee engagement is not easy to grasp, measure, or influence. For example, how engaged and motivated employees are depends on the company culture as a whole. The factors that boost engagement vary from person to person, so the following points should be seen as inspiration for leaders to introduce improvements and gather feedback to evaluate their effectiveness and perception.

1. Employee Journey. Employee satisfaction is important from the very beginning. From onboarding to leaving the company due to a job change or retirement, every stage influences the satisfaction and engagement not only of the individual but also of the colleagues who witness it. Some examples: How well is the onboarding process handled for new hires? How welcome do they feel? How much appreciation is shown when someone leaves? Are important milestones in the professional (and personal) lives of individual employees acknowledged?
2. Autonomy and trust. Nobody likes being micromanaged. If you select employees carefully and provide them with all the necessary support, you must also trust them and have confidence in their ability to solve problems and carry out projects independently. Even trainees can be entrusted with responsibility for smaller tasks. Motivation and employee engagement benefit significantly when employees are trusted and given as much freedom as possible in how they do their work, as long as the results are right.
3. Equality and diversity. What is the relationship between leadership and other employees? What is the composition of the leadership team and the rest of the workforce? Diversity benefits not only the company itself but, above all, the employees. Diversity refers not only to the company as a whole but especially to leadership levels: what is the distribution? How many people from marginalized (and intersectionally marginalized) groups are represented? Do all employees feel sufficiently represented and feel that their individual experiences and needs are taken seriously?
4. Innovation and new ideas. How rigid are workflows and tasks? Are new ideas and creativity welcome, and can employees contribute and make suggestions? Stagnation leads to dissatisfaction for many people, both in their own careers and in their daily routines. Anyone who realizes that processes, tools, or values are outdated and could use a refresh, only to be turned down, is likely to be much less motivated than employees who feel their input is valued.
5. Work-life balance. Even employees who identify with their work need balance and downtime. Is there time off in lieu after stressful periods with a lot of overtime? Regular workdays and weeks are also important: to avoid exhaustion and frustration, clear communication rules are essential, for example: professional exchanges should take place during working hours, with after-hours and days off reserved for emergencies only. Employee health must be a top priority.
6. Recognition and appreciation. Is good work recognized? Are there rewards for high performance and achievements? In addition to financial incentives, this can also include small gestures like a team lunch for outstanding team performance, a gift voucher, or a basket of treats.
7. Transparent, empathetic, and egalitarian leadership style. Since the leadership level has such a significant influence on motivation and engagement, the importance of leadership style cannot be overstated. Key elements of a modern leadership style include empathy, appreciation, respect, trust, open communication, and involving employees in decision-making.
8. Presence and engagement of the leadership team. Since leaders communicate company values and corporate culture by example, absent managers and team leads are counterproductive. Knowing that leaders are present, approachable, and that employees can count on their support can significantly improve employee engagement.
9. Challenging, fulfilling, and varied tasks. Being over- or under-challenged leads to stress and frustration, as do repetitive, menial tasks. Employees who enjoy their work and know they contribute to the company's success are more motivated. Conversely, those who view their work as unimportant, meaningless, or boring will show less engagement.
10. Feedback. Constructive feedback is important in both directions: employees must have the opportunity to provide input on what is going well and what is not, where they would like to see improvements, and what managers can do specifically. Regular surveys and one-on-one meetings help maintain this dialogue.
11. Collaboration. What is the daily work routine like at the company? Does everyone work in isolation, or is there a lot of exchange? In general, better results are achieved and motivation increases when work is treated as teamwork rather than a solo effort. Those who look forward to collaborating with their teammates are more motivated to come to work and are more committed to the success of the team and the company.
12. Realistic goals. When we know why we are doing something, we are usually more motivated. Goals should be challenging and demanding, but also realistic. Goals that are imposed by management and are too high can quickly demotivate, which is why employees should be involved in defining them. Short-term goals are just as important as long-term perspectives. Regular progress meetings help to keep goals in sight and adjust them if necessary.
13. Flexibility. The pandemic demonstrated on a large scale how well a company can adapt to changes and new requirements and needs. But flexibility is also a desirable value on a personal level. Being able to respond to changes in an employee's personal situation and offering a solution shows appreciation. This can mean, for example, offering more flexible working hours or work models. Since the pandemic, for instance, many employees have learned to appreciate the benefits of hybrid work .
14. Team-building activities. The principle of team building is not new. Shared experiences improve the team atmosphere and cohesion. In addition to the classic Christmas and summer parties, this can include, for example, regular team lunches mean company outings or cooking together in the office kitchen.
15. Professional development. Many people have career goals and do not see themselves in the same job with the same salary and the same tasks and responsibilities for years or decades. Companies can support employees in their professional advancement through initiatives such as mentoring programs or further training opportunities. From regular seminars and team knowledge sharing to formal courses, there are many ways to expand employees' knowledge for their own personal growth and to the benefit of the company.
16. Employee benefits. Appreciation can be shown in many ways. A word of recognition, praise in a team meeting, or a gesture in the form of a bonus payment or Corporate benefits. Health promotion offers, childcare support, meal vouchers, and office catering are just a few examples of employee perks.
17. Resources. Is all technical equipment up to date? Can you work productively with the existing tools and software solutions, and is it enjoyable to use them? Slow, outdated technology can be a significant demotivator, whereas having your own state-of-the-art company laptop can be a great motivator. Here, too, an open dialogue helps to determine what is needed and what is lacking. What makes work difficult and what would make it easier?

To improve employee engagement, the first step is important: recognizing the need for action and prioritizing the employee experience—not just when you can already feel that company success is suffering. When the focus is primarily on generating revenue, it is easy to forget who generates that revenue and what a company's most important resource is: satisfied, engaged employees.

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Even though benefits aren't everything, the impact of small gestures for the team on employee engagement should not be underestimated. A regular team lunch paid for by the employer. Varied team events that everyone will remember for a long time. At heycater!, we have made it our mission to support teams with good food and offers for remote team events. Check out our virtual events in the marketplace or request your team catering from us directly!

Did you get a lot of ideas from this article? Feel free to share it with your teammates!