What are the Key Drivers of Employee Engagement?

More and more companies are seeking ways to measure and improve employee engagement. Employee engagement reduces turnover and improves retention in a tight labor market, while also improving job satisfaction and productivity, allowing teams to do more with the same staff.

That said, employee engagement can be difficult to measure, and even more difficult to improve. Understanding the key drivers of employee engagement helps HR officers and Diversity, Equity, and Inclusion (DEI) managers create strategies that actually drive results.

What are the Seven Drivers of Employee Engagement?

There are many different drivers of employee engagement, and different systems measure these key drivers in different ways. However, this list of the top 7 drivers of employee engagement is the most essential:

1. Purpose Alignment. Engaged employees are inspired and motivated by a sense of purpose in the work they do. When employees are aligned with company goals, working towards a meaningful cause, they are more engaged and more productive.
2. Momentum. When employees feel that their contributions are effective and that they are making forward progress, they are driven to continue making progress. When employees feel that their contributions are not effective and that nothing they do has an impact, it is easy to continue doing nothing. Action begets action, and inertia begets inertia.
3. Task Autonomy. Giving employees control over tasks creates a feeling of ownership and accountability. They take more pride in their successes and work harder to prevent failures.
4. Skill Alignment. A surprising 39% of employees feel that their actual job responsibilities are different from what was described in the job listing. In many cases, that means that employees aren’t using their established skills and abilities in their day-to-day tasks, and may not be the right fit for the role. The most disengaged employees are employees who aren’t doing what they are good at.
5. Recognition and Rewards. Lack of recognition is one of the most cited reasons for people to leave a job. On the other hand, recognition triggers the brain’s reward system, motivating people to continue successful behaviors.
6. Workplace Relationships. People crave positive social interactions in all areas of life, including the workplace. Employees want to work with peers and contacts who they like and respect and feel liked and respected themselves, creating an enjoyable day-to-day experience in the workplace.
7. Future Opportunities. Engaged employees are committed in the long term. They see a positive future for themselves in the company and want to work to make it a reality.

Which of These Are the Key Drivers? 

While all these engagement factors are important and drive performance as well as retention, the top three drivers of employee engagement are:

• Purpose. An overwhelming 89% of adults report that a clear mission and purpose are important in their workplace. Purpose can either be described as a shared vision between the employee and the company, or a sense of meaning and purpose in the job itself. Employees who feel a sense of purpose have more personal fulfillment and job satisfaction, making them more productive and more successful. In addition, purpose-oriented employees have a longer tenure and are more likely to rise to leadership positions.
• Autonomy. While 79% of engaged employees are autonomous, 52% of employees feel that they lack autonomy. Autonomy is the freedom that allows employees to make their own decisions about the planning and execution of their tasks. Autonomy expresses trust and respect for the employee while increasing their sense of commitment and accountability in the workplace. Autonomy is essential for allowing employees to fulfill their tasks in a way that suits their style and preferences, while also achieving organizational goals.
• Relationships. Positive workplace relationships are critical, not just for employee engagement, but for employee physical and psychological health. Employees who feel socially isolated, disconnected, and disrespected at work are the least engaged, and most likely to leave. Positive work relationships have a powerful impact on team and individual productivity, workplace creativity, and innovation, and reduce turnover, absenteeism, and even safety incidents.

Because these factors relate to people’s deepest and most powerful psychological motivations, they are the most important drivers of employee relationships.

In addition, addressing these key drivers often involves addressing other drivers along the way. For example, cultivating a sense of purpose may include the creation of future opportunities, while improving workplace relationships may require more recognition.

Strategies to Use the Key Drivers to Improve Employee Engagement

The best tools we have to measure employee engagement are surveys that ask relevant questions and target potential problem areas. For HR officers who are just beginning to measure employee engagement, focusing on the key drivers of engagement (purpose, autonomy, and relationships) is a great place to start. Some strategies to improve drivers of employee engagement include:

• Modeling company core values & emphasizing your mission
• Helping employees understand how their daily tasks contribute meaningfully to organizational goals
• Asking employees for input on organizational goals
• Giving employees more ownership of their schedule, processes, & outcomes
• Focus on principles, not policies
• Build a climate of mutual trust & respect, especially in hierarchical relationships
• Create clear & open communication channels
• Promote honest & constructive feedback
• Create fair & accessible channels for dispute resolution

The Impact of Leadership in Employee Engagement

When a manager shares company goals transparently and involves the team in planning, it clarifies expectations and shows that their input matters, which enhances their sense of value and belonging. Addressing individual concerns and providing support during challenges demonstrates empathy and builds trust. A leader who works alongside the team during a busy project shows commitment and sets a standard of accountability. This approach not only motivates employees but also strengthens their dedication, leading to higher engagement and productivity.

The Impact of Organizational Culture

Organizational culture directly influences employee engagement. In a positive culture that promotes inclusivity, respect, and collaboration, employees are more likely to be committed, motivated, and productive.

When a company values diversity and inclusivity, employees feel respected and part of a team, boosting morale and engagement. Open and honest communication from leadership ensures employees feel heard and valued, building trust and commitment. Regular recognition and rewards for achievements make employees feel appreciated, increasing their motivation and dedication to their work.

On the other hand, a toxic culture with poor communication, lack of recognition, and disrespect leads to disengagement. Employees in such environments often feel undervalued and disconnected, resulting in higher turnover and lower productivity. Ensuring that the organizational culture supports and values every employee is key to maintaining high levels of engagement.

High Employee Engagement Leads to Numerous Tangible Benefits

Engaged employees are more focused, motivated, and efficient in their work, which increases overall productivity. According to a Gallup study, companies with highly engaged employees are 21% more profitable than those with low engagement levels .

When employees feel engaged and valued, they are more likely to stay with the company, reducing turnover rates. This helps avoid the costs and disruptions associated with recruiting, hiring, and training new staff. Research by the Corporate Leadership Council shows that engaged employees are 87% less likely to leave their organizations .

High engagement levels also lead to higher job satisfaction, as employees enjoy their work and feel a sense of accomplishment and purpose. A study by Aon Hewitt found that companies with high employee engagement scores had 40% lower absenteeism .

Improved customer service is another significant benefit. Engaged employees are more likely to provide exceptional service because they care about the company’s success and the customers’ experience. This leads to higher customer satisfaction and loyalty. According to a study by the Temkin Group, companies that excel at customer experience have 1.5 times more engaged employees than their peers .

Enhanced innovation is also a key benefit of high employee engagement. Engaged employees are more likely to contribute creative ideas and solutions, driving the company’s growth and competitive advantage. They feel empowered to take initiative and think outside the box, leading to continuous improvement and innovation. Gallup reports that companies with highly engaged workforces outperform their peers by 147% in earnings per share .

Furthermore, engaged employees are strong advocates for the company, both internally and externally. They promote a positive reputation by speaking highly of their employer, attracting top talent, and building trust with customers and partners.

How Can Diversio Help?

Diversio is an innovative platform that helps measure, track, and improve diversity and inclusion in companies. It improves employee engagement by creating a fair, just, and inclusive workplace, where all employees feel valued and empowered to contribute meaningfully. Our anonymous surveys use natural language processing technology so that employees can share their opinions freely and in their own words, and our AI-powered Recommendation Engine provides tools and interventions that are proven to give results.

Diversio also offers training, certifications, and other tools to help build a truly inclusive workplace, improving employee relationships and promoting greater engagement. Schedule a demo today.

Frequently Asked Questions About Employee Engagement

How can we measure employee engagement effectively?

Effective measurement of employee engagement can be done through regular employee surveys, pulse checks, one-on-one interviews, and feedback sessions. Using tools that provide real-time data and analytics can help track engagement levels and identify areas for improvement.

How can we improve engagement for remote employees?

Start with regular communication: schedule consistent check-ins and team meetings to keep everyone connected and informed. Provide the necessary tools and resources to ensure employees have access to high-speed internet, laptops, and any specialized software or equipment they need to perform their tasks efficiently.

Creating virtual team-building activities can help foster a sense of camaraderie. Organize online social events like virtual coffee breaks, game nights, or team challenges. Recognize their contributions by celebrating achievements and milestones publicly in team meetings or through company-wide emails.

Offering flexibility is important, too. Allow flexible working hours to help employees balance work and personal life, catering to different time zones and personal commitments. Management support is vital: provide regular feedback, offer professional development opportunities, and be available for one-on-one support to address any concerns or challenges they may face.

Promote well-being by encouraging regular breaks, providing access to wellness programs, and promoting a healthy work-life balance to prevent burnout.

Diversio’s platform can help streamline these strategies. Use Diversio’s anonymous surveys to gather genuine feedback from remote employees, ensuring their voices are heard. The AI-powered Recommendation Engine provides tailored solutions to improve remote work engagement. Diversio’s tools also help track and analyze engagement data in real-time, making it easier to adjust strategies as needed.

How can we address disengagement in the workplace?

Addressing disengagement involves identifying the root causes through surveys and feedback, fostering open communication, recognizing and addressing burnout, providing support and resources, and creating an inclusive and supportive work environment.

What are some common signs of disengaged employees?

Common signs of disengaged employees include lack of enthusiasm, decreased productivity, frequent absences, lack of participation in team activities, and a general lack of interest in their work. Recognizing these signs early can help in taking corrective actions.

With Diversio’s anonymous surveys, you can gather candid feedback from employees about their engagement levels and pinpoint specific issues affecting their morale. The AI-powered Recommendation Engine then analyzes this data and provides tailored recommendations to address the root causes of disengagement. Additionally, Diversio’s real-time data tracking allows you to monitor changes in employee engagement and make timely adjustments to your strategies.