Just how closely is employee engagement tied to workplace productivity (and other KPIs)?

Monday August 26th, 2019

Estimated time to read: 1 minute, 30 seconds


Companies that report high levels of employee engagement are lucky.

They likely have staff members who are satisfied with their jobs and their respective career trajectories. They may have great teamwork and even some legendary happy hours.

But what about core business metrics?

Are engaged employees producing higher ROI? Are they measurably more productive on a daily basis? Can you draw a straight line pointing to profitability?

Let’s explore the many ways that employee engagement correlates to KPIs:


A long-running Gallup series on workplace sentiment illustrates the connection between engagement and productivity. Highly engaged teams are 21% more productive and 22% more profitable than those that aren’t.

Employee engagement also limits shrinkage, absenteeism, quality defects and accidents.


More than 80% of employees say they would quit their jobs if they were offered better development opportunities elsewhere, The Harris Poll found. But 98% of employers say they already offer career development tools. So what gives?

Well, employers offer tools, but not solutions, according to the data.

So there’s quite a bit of mixed messaging: Employers believe they’re doing the right thing by offering career development opportunities, but employees say they’re not receiving the options they want to pursue.

Bridging this gap can retain workers and prevent unnecessary turnover. One way to do this is to engage workers with actionable, modern HCM software that keeps them abreast of all company updates, career pathways and digital perks.


About 83% of HR professionals are struggling to recruit and hire in 2019. Finding suitable candidates is challenging, and every minute spent scouring job boards and interviewing non-starters is money lost.

Leveraging an employee referral program, however, can streamline talent pipelines. Referral candidates are already vetted, typically arrive more engaged and are stronger fits with company culture.


Disengaged employees cost companies $550 billion a year. On the other hand, companies with highly engaged employees report 2.5 times more revenue each year, and they outperform low-engagement companies by 202%.


Another interesting data point is that 50% of employees are willing to sacrifice a higher salary if they truly enjoy their job. Research shows that workers will accept as much as a 29% reduced salary because what they lose in pay is, they feel, earned back in job satisfaction and engagement.

While budgeting should never be a race to the bottom, the fact that engagement can actually save your company money in the form of reduced labor costs speaks volumes.

Making tech work for you

Seamless technology integration is a key value-driver for companies hoping to re-engage employees and improve overall communication.

RingCentral discovered that 92% of employees believe a collaborative, user-friendly platform would help them connect with colleagues and customers - as well as increase their job satisfaction. Similarly, 86% say a platform would generate higher profit and entice them to stay with the company longer.

That’s a win-win.

Schedule a Demo