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4 Reasons Why Employee Engagement Matters

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Research shows that employee engagement is very important but why? These are 4 reasons why we think employee engagement matters.

Research has shown that employee engagement is important, but why?

Employee engagement is a word you hear throughout the industry often and the definition varies. People performance specialist and author Kevin Kruse defines it as, “the emotional commitment the employee has to the organization and its goals.” With all the talk about what employee engagement is, there should be more explanation of why it matters. Here are our top 4 reasons why employee engagement matters.


47% of people actively looking for new positions say company culture is the main reason according to Hays. Company culture, acknowledgement and feedback are some of the most important factors for an employee’s happiness. When these factors lack, so does their happiness. Happy employees are not always engaged but all engaged employees are happy.

Retention & Recruitment

Employees who feel they are contributing and engaged are less likely to leave their jobs. Low turnover means less is spent on recruiting and training replacements. Employee engagement not only helps you keep your happy employees, but it can help you find new employees. When you have happy and engaged employees, they are more likely to recommend your company to people who they know are looking for a new job. A study found that 35% of job seekers applied for their current or most recent position because of a referral, this is true especially for millennials.


Engaged employees want to work and work hard which then increases productivity for a company. Higher productivity levels aren’t only good for business and profit, it helps beat out the competition.

Research shows that companies who have engaged employees outperform companies who do not have engaged employees by 202%. That is a huge edge you could gain over your competition just by ensuring your employees are engaged!



A company who focuses on employee engagement is filled with people who genuinely want the company to succeed. This not only creates a positive work environment but profit. Having an engaged business can create a 20% increase in sales. Engaged employees, happy customers, increased profit.

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