What are the Levels of Employee Engagement

People are the key to your success, which is why workplace engagement has evolved into a fundamental factor in organizational success. High levels of engagement strengthen organizational performance and stakeholder value while encouraging employee retention, fostering customer loyalty, and improving customer satisfaction. The impact of employee retention on a company's bottom line cannot be overstated, as it directly affects productivity, morale, and overall business performance.

Workplace retention is a major concern for most businesses in the rapidly evolving modern business environment. Are you aware of the term "war for talent"? It refers to the phenomenon of businesses finding it difficult to retain top employees. This is due to a skills deficit and employee expectations. Prospective employees now assess not only the perks of working for a company but also the company's beliefs and growth prospects. In other words, you must have a strong employee engagement strategy to stay ahead of the competition and survive the "war for talent”.

Current trends in employee engagement in developed countries show a growing emphasis on work-life balance, flexible working arrangements, and meaningful work. Employee retention research indicates that companies that prioritize these factors tend to have higher retention rates and more engaged workforces.

Levels of Employee Engagement

To evaluate the changes in American workforces, Gallup launched an employee engagement tracking survey about 20 years ago. The study examined common elements and grouped them into 3 types of employee engagement based on commitment and dedication. The three levels of workplace engagement are: actively engaged, not engaged, and actively disengaged.

Companies can benefit from this model to further understand the importance of employee engagement. The model can help companies increase productivity and commitment within the organization.

1. Actively Engaged

Actively engaged employees are heavily invested in and passionate regarding their work and the company. They want to drive their company to success with their productivity and high performance. 

Engaged employees believe in their company’s ‘customer first’ ethos. They demonstrate leadership, enthusiasm, creativity, ambition, tenacity, and a strong work ethic.

Actively engaged employees:

• Offer creative ideas for enhancing operations.

• Take on initiatives that will benefit the company.

• Support the company's vision and beliefs.

• Show pride in their company.

• Exceed expectations.

• Create bonds within the company and motivate their colleagues.

• Are resilient when faced with obstacles and pressure.

• Maintain a positive outlook on the future of the business.

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2. Not Engaged

Not engaged employees are emotionally disconnected from their work and workplace.  As a result of their demands not being adequately addressed, they only invest hours in their job, not their passion or drive.

Consider an employee who completes their job but is motivated by responsibility and a monthly salary instead of interest. A not-engaged employee will prefer to stay low and decline particularly demanding tasks.

Not engaged employees:

• Perform the bare minimum to survive.

• Don't make recommendations for enhancing processes.

• Don't like change or growth.

• Will constantly criticize the organization or become uninterested.

• Are reluctant to go beyond their duties and responsibilities.

• Don't respect the company's goals and objectives.

• Prefer working alone and are not team players.

3. Actively Disengaged

Actively disengaged employees are not just dissatisfied at work. They are also disappointed that their demands are not addressed by their workplace. These workers potentially undercut the efforts of their motivated peers every day.

An actively disengaged employee wastes time criticizing other colleagues, ongoing projects, management, etc. They may wish to discontinue their tenure at the company. As a result, they may actively be looking for alternative career opportunities as well.

Actively disengaged employees:

• Through their statements, they make it obvious that they do not wish to work for the organization. 

• Sabotage the efforts of their teams, management, colleagues, and the company.

• Claim credit for another person's work. 

• Blame their lousy performance on a lack of resources.

• Are outspoken about the issues with the company. 

• Spread damaging information about the company outside work.

• Are not receptive to learning or growing.

• Complain about the company's flaws instead of suggesting remedies.

• Are not team players.

What Factors Cause Decline in Employee Engagement?

Lack of Confidence in Leadership

Employee engagement is greatly influenced by the interactions between employees and their management. Psychologically absent leaders don't take the opportunity to get to know their employees. They fail to give adequate guidance and constructive criticism. Apart from not showing appreciation, they may also micromanage their teams. They struggle to develop strong ties with their teams and frequently claim credit for the achievements of their teammates. Excessive stress and poor employee morale can eventually cause employee disengagement. The three main factors that contribute to employee disengagement are: 

• Poor leadership

• Lack of mentors

• Poor working relationship with superiors

Limited Growth Opportunities

Career growth advancement and professional opportunities are significant factors that influence whether an employee will continue with your organization. Therefore, you must give your employees the necessary training and learning opportunities for them to be more engaged in their jobs. Without the same, employees may struggle to understand how to progress in their professions. They may also be unable to place their line of work within the hierarchy of the organization. Employee disengagement could result from insufficient training and development (L&D) initiatives.

Poor Reward and Recognition Program

If your employees are delivering their best work but do not gain recognition for their accomplishments, they may burn out and stop caring about their job. Poor, impersonal rewards and recognition programs will be ineffective and may potentially harm employee engagement. Modern employee recognition programs should focus on strategic recognition and performance recognition to boost job satisfaction and employee motivation. Employee recognition research shows that well-designed appreciation programs can significantly improve employee satisfaction and retention rates.

Disregard for Employee Well-being

Employee engagement is heavily impacted by employee well-being. A motivated workforce is more likely to exist in companies that take a genuine interest in employee mental health.  Workplace factors like stress, anxiety, and burnout should all be addressed by companies. Failure to do so may lead to employee disengagement. Implementing wellness programs can significantly improve workplace well-being and contribute to employee retention. The benefits of wellness programs for employees extend beyond physical health, positively impacting mental health, job satisfaction, and overall productivity.

Discrepancies with Company's Values and Goals

Companies choose to work with people who match their organizational culture. Similarly, employees choose to work with companies that share their goals and beliefs. An individual prioritizing work-life balance will not work for an employer with unpredictable work hours. Employees who appreciate diversity, equity, and inclusiveness at work would like their company to embrace these values. Both employers and employees must share the same objectives for the company to maintain a positive workplace culture.

Unsatisfactory Compensation and Incentives

Another factor for employee disengagement is inadequate compensation and benefits. Financial stress is an important factor in employee disengagement at work. Employees don't feel motivated by their jobs if they're not paid enough for their time and effort. As a result, they are less likely to be engaged. They may find it challenging to partake in workplace activities when preoccupied with paying bills and providing for their family.

How Do You Keep Employee Engagement High?

Strengthen Communication and Relationships

Disengaged employees may have great potential but frequently feel neglected. Therefore, management should balance communication with a greater concentration on what employees have to say. They should also urge them to express their concerns, so appropriate steps can be taken. You can encourage employees' sense of belonging and participation by actively offering them opportunities to interact with peers. Make sure to also look into other ways to help them establish closer ties at work.

Invest in Career Development

Most employers say that their companies provide limited opportunities for growth and development. This leads to disgruntled employees and, eventually, disengagement at work. Work on an employee development and training strategy. This can help employees grow in their careers and learn new skills. According to a Udemy survey, learning and development opportunities can increase employee engagement at work by 80%.

Provide Recognition and Reward to Employees

By expressing your gratitude for their efforts and contributions, you can re-engage your workforce. Employee engagement and recognition programs are crucial for boosting morale and improving employee performance. You do not need to design an expensive reward and recognition program. 

A solution can be found in implementing employee recognition software where you can acknowledge your employees' hard work and make them feel valued with ease. Another way is simply thanking them, complimenting them in meetings, or honoring them as an employee of the month can make a positive impact. Employee peer recognition programs can also be effective in boosting morale and fostering a culture of appreciation.

When considering types of employee recognition programs, it's important to choose those that align with your company culture and values. Employee recognition awards programs can range from formal annual ceremonies to more frequent, informal recognition moments. The key is to ensure that these programs are consistent, fair, and meaningful to employees.

Recognition programs for employees best practices:

1. Timely recognition

2. Specific and personalized appreciation

3. Aligning recognition with company values

4. Offering a variety of recognition types (verbal, written, tangible rewards)

5. Encouraging peer-to-peer recognition

Statistics on employee recognition show that companies with effective recognition programs have 31% lower voluntary turnover rates compared to those without such programs.

Seek Employee Feedback

Asking questions will help companies understand what motivates employees and how employee engagement can be strengthened. You can learn how to improve employee engagement using employee engagement surveys, exit interviews, and online reviews of your company. Regular employee retention surveys can provide valuable insights into factors affecting job satisfaction and employee loyalty. These surveys can help identify areas for improvement and track progress over time. Implementing an annual employee retention survey can be particularly effective in gauging long-term trends and the impact of engagement initiatives.

Provide Flexibility

Employees are increasingly choosing flexible and work-from-home options over conventional 9 to 5 jobs. To encourage your workforce, consider offering a flexible hours policy. You can also let employees work remotely, provided the nature of your firm supports it. This will be more effective than giving them annual incentives. Employees who have greater control over their schedules are more efficient, happier, and work harder to achieve the company's goals. 

Review Pay and Benefits

A lack of competitive perks or poor wages can make employees feel disrespected and disengaged. Use an HR payroll system to examine all aspects of employee remuneration. This includes incentives, bonuses, time off, and other benefits. Make sure to conduct an in-depth analysis of what you currently provide your employees. Consider implementing wellness programs as part of your benefits package, as the benefits of corporate wellness programs statistics, show positive impacts on employee retention and overall satisfaction. The link between health benefits and employee retention is significant, with comprehensive health packages often being a key factor in an employee's decision to stay with a company. Offering competitive health benefits can greatly enhance your employee retention strategy.

Employee disengagement affects countless companies globally. If not treated with extreme caution, it can be an epidemic in the workplace. Regardless of the reason for employee disengagement, it is the company's responsibility to initiate the process of re-engagement. When businesses understand the consequences of poor employee engagement, they are more likely to make incremental changes and implement initiatives that boost employee engagement and reduce employee turnover.

​​There is no quick fix for increasing employee engagement in your organization. However, there are steps to identify probable reasons for disengagement. With the insight we've provided, you can accelerate progress toward increasing employee engagement by building relationships, knowledge programs, rewards, and recognition.

Developing a comprehensive employee recognition strategy is crucial for talent retention and fostering a positive work environment. By focusing on employee appreciation, satisfaction, and rewards, companies can significantly improve employee productivity and performance. As Gallup employee recognition studies have shown, regular recognition and praise can lead to higher retention rates, increased productivity, and better customer engagement scores.

In conclusion, the key to successful talent retention lies in understanding and addressing the various factors that contribute to employee engagement. By implementing effective recognition programs, wellness initiatives, and fostering a culture of appreciation, companies can create an environment where employees feel valued, motivated, and committed to their work and the organization's success. Employee rewards, both monetary and non-monetary, play a crucial role in this process, reinforcing positive behaviors and encouraging long-term commitment to the company.

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FAQ's

1. What is employee engagement and why is it important?
Ans: Employee engagement refers to the emotional commitment an employee has toward their organization and its goals. It's critical for improving productivity, retaining top talent, and driving business success.

2. What are the three levels of employee engagement?
Ans: Gallup classifies employees as actively engaged, not engaged, and actively disengaged—each with different impacts on workplace culture and performance.

3. What causes low employee engagement?
Ans: Common causes include poor leadership, limited growth opportunities, lack of recognition, inadequate compensation, and misalignment with company values.

4. How can organizations improve employee engagement?
Ans: Strategies include strengthening leadership communication, offering career development, recognizing employee achievements, providing flexibility, and conducting regular feedback surveys.

5. What is the 'war for talent' in HR?
Ans: The "war for talent" describes the intense competition among companies to attract and retain top-tier employees in a market with limited skilled candidates.

6. How does poor leadership affect employee engagement?
Ans: Leaders who micromanage, fail to communicate, or don't show appreciation can contribute significantly to employee dissatisfaction and disengagement.

7. What role does recognition play in employee engagement?
Ans: Recognition—whether through simple thanks or formal programs—boosts morale, increases motivation, and reinforces positive behaviors in the workplace.

8. Why do employees disengage even if they are paid well?
Ans: Compensation alone doesn’t guarantee engagement. Factors like career growth, meaningful work, recognition, leadership, and workplace culture play a vital role.

Author Bio:

Alex Shvarts is the CEO of FundKite, one of the fastest-growing FinTech companies in New York that provide funding to small businesses across the U.S. Founded in 2015, Alex’s business utilizes a boutique funding style, offering business owners a flexible variety of products and services that can be tailored to fit their individual financial situations. Prior to founding FundKite, Alex engineered and sold proprietary technology to the greater FinTech industry.