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 new meta-analysis conducted by Gallup, organizations with high levels of employee engagement report 22% higher productivity compared to 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

1. 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.

2. 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.

3. 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.4.

4. 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.

5. 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.

6. 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.

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

The Increased Importance of Employee Engagement

  • Post-pandemic, with the widespread adoption of the Work From Home (WFH) model, employee engagement has become more crucial than ever.
  • Engaged employees are more motivated, productive, and less prone to errors. 
  • Companies are implementing strategies to keep employees connected and committed.

Its Impact on Performance with the WFH Module/Post-Pandemic Situation

  • Disengaged employees are 60% more likely to make mistakes compared to their engaged counterparts. 
  • Maintaining engagement during remote work leads to higher productivity and fewer errors.
  • As Howard Schultz, former CEO of Starbucks, stated:
    “You can’t expect your employees to exceed the expectations of your customers if you don’t exceed the employees’ expectations of management.”

Ensuring that employees feel valued and supported is essential for enhancing performance in the current WFH and post-pandemic landscape.

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

Employee engagement plays a crucial role in workplace performance. When employees feel connected to their work and valued by their organization, they tend to be more productive, motivated, and committed. However, low engagement can have the opposite effect—leading to decreased performance and higher turnover rates.

The Reality of Employee Engagement

By the end of 2023, 33% of U.S. employees were highly engaged, while 17% were actively disengaged, leaving approximately 50% not engaged—psychologically detached from their work but not actively disruptive. This means around 67% of employees are either indifferent or negatively impacting team dynamics, rather than nearly 70%.

Impact on Performance

Higher Engagement

Engaged employees are more likely to take initiative, complete tasks efficiently, and maintain a positive attitude. This directly translates to higher productivity and improved team performance.

Low Engagement

When employees feel disconnected, they are prone to low productivity, frequent absenteeism, and even workplace conflicts, which can harm overall team output.


Maintaining Consistent Engagement

Engagement isn’t a one-time effort—it requires ongoing attention and active involvement from management.
Organizations must create a culture of continuous feedback, recognition, and support to keep employees motivated.
Regular check-ins, growth opportunities, and open communication can sustain long-term engagement, leading to consistent performance improvements.

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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