Do engaged employees perform better?

The link between engagement and performance

Engaged employees are not just content in their roles—they are invested in the company’s mission and success. This investment translates directly into better performance. Engaged employees are more likely to take ownership of their work, show initiative, and be accountable for the results. Employee engagement activities such as team-building exercises, wellness programs, and skills-based volunteering allow employees to feel connected to the organization and their communities. When employees are engaged, they’re more likely to collaborate effectively, innovate, and go the extra mile to meet company goals.

The relationship between employee engagement and performance is supported by data. According to Harvard Business Review, companies with high levels of engagement see an increase in productivity, a decrease in turnover, and a higher quality of work. Engaged employees are more committed to delivering results, and this often results in better client satisfaction, higher sales, and retention.

One of the top employee engagement strategies is creating opportunities for employees to apply their skills in meaningful ways. Skills-based volunteering, for example, provides employees with a chance to develop their expertise while making a social impact. This not only boosts morale but also sharpens their skills, directly benefiting the business. Employees who participate in these initiatives often report higher satisfaction and are more likely to stay with the company—highlighting the link between employee engagement and retention. When employees are engaged in their work and feel they are making a difference, they are less likely to leave for another organization.

HR professionals who want to improve employee engagement should consider how they can provide these types of growth and development opportunities. Employees want to feel challenged and valued, and by offering avenues like skills-based volunteering, companies can ensure employees are continually learning and contributing to their communities.

How engagement drives innovation and productivity

In addition to fostering a positive work culture, employee engagement plays a crucial role in driving innovation. When employees are engaged, they feel empowered to think creatively and take initiative. This culture of innovation leads to better problem-solving and, ultimately, more innovative products and services. Companies that increase employee engagement are more likely to see a boost in sales and overall business success because engaged employees are motivated to contribute to the company’s growth.

Google is an excellent example of a company that thrives on employee engagement. Google fosters a culture where innovation is rewarded, and employees are given the freedom to explore creative solutions to business challenges. They offer “20% time” where employees can spend one-fifth of their work hours pursuing passion projects that align with the company’s broader mission. This approach to employee engagement strategies has led to the creation of some of the company’s most successful products. Google’s culture proves that when employees are engaged, innovation follows.

Moreover, businesses that actively implement employee engagement solutions find that engagement also drives productivity. Engaged employees are more focused, less likely to take unproductive breaks, and better equipped to manage their workload efficiently. For HR professionals, learning how to increase employee engagement and sustain it over time can lead to significant long-term benefits, including higher revenue and better business outcomes.

The role of leadership in engagement

A key factor in fostering employee engagement is strong leadership. Managers who actively engage with their teams, offer recognition, and provide clear communication are essential in maintaining high levels of engagement. Employees who feel disconnected from their leaders are more likely to disengage from their work. In contrast, leaders who invest time in mentoring, provide constructive feedback, and support their teams' personal and professional growth contribute to a highly engaged and motivated workforce.

Leaders play an active role in defining the company's mission and communicating that vision to employees. When employees understand how their work contributes to the overall success of the business, they are more likely to feel a sense of ownership and pride in their roles. Effective leaders can cultivate a work environment where employees are motivated to exceed expectations, share new ideas, and collaborate across departments. This kind of leadership support is essential for improving employee engagement and maintaining long-term productivity.

Employee engagement and skills-based volunteering

One of the most effective ways to improve employee engagement is through skills-based volunteering programs. These initiatives allow employees to apply their professional skills to nonprofit work, making a tangible difference in their communities while developing their abilities. This engagement not only benefits the community but also strengthens employees’ skill sets, leading to enhanced problem-solving abilities, innovation, and collaboration back in the workplace.

Catchafire offers hundreds of virtual and in-person volunteer opportunities:

• Microvolunteering: Answer a nonprofit question in less than 15 minutes
• One-hour consultation call: Provide support on an immediate need
• Full-length projects: Spend a few hours or weeks providing support in key areas like marketing, finance, and IT
• Board service: Build long-term impact and relationships by joining a nonprofit board

For example, an employee with marketing expertise might volunteer their skills to help a nonprofit improve its fundraising efforts. While this directly benefits the nonprofit, it also helps the employee refine their marketing skills, test out new strategies, and collaborate with other professionals outside their usual work environment. When they return to the workplace, they bring with them new perspectives and ideas, enhancing overall productivity and innovation within their team. Skills-based volunteering also serves as a valuable team-building exercise, fostering collaboration among employees who may not typically work together.

Another key benefit of skills-based volunteering is that it demonstrates a company’s commitment to social responsibility, which is becoming increasingly important for attracting and retaining talent. Employees want to work for companies that align with their values, and by offering volunteer opportunities, businesses can create a sense of purpose that goes beyond profit. This leads to greater employee engagement and retention, as employees are more likely to stay with companies that they feel are making a positive impact on the world.

When companies invest in improving employee engagement, they see the direct benefits of having a motivated and productive workforce. This leads to better sales, improved client relationships, and greater overall success. Engaged employees perform better because they are more aligned with the company’s mission, more skilled, and more willing to contribute to the business’s success.

The benefits of employee engagement

The benefits of employee engagement extend beyond just productivity and retention. Engaged employees are more likely to recommend their company to others, both as a place to work and as a business to support. They become ambassadors for the brand, driving not only internal success but also external reputation. For HR professionals looking for employee engagement solutions, focusing on meaningful engagement initiatives like skills-based volunteering can yield tremendous results in both employee performance and overall business success.

Engaged employees are also less likely to experience burnout. They feel more satisfied in their work, have a better work-life balance, and are less prone to stress and anxiety. This leads to lower absenteeism, fewer health-related costs, and a more positive workplace culture. For HR professionals looking for employee engagement solutions, focusing on meaningful engagement initiatives like skills-based volunteering can yield tremendous results in both employee performance and overall business success.

Employee engagement software that drives results

If your company is looking for ways to enhance productivity and performance, focusing on employee engagement is essential. By leveraging employee engagement software, you can streamline employee engagement activities and volunteer programs, ensuring that your employees have the tools they need to stay engaged, productive, and invested in the company’s mission.

Our employee engagement software is designed to help you build and manage volunteer programs that boost morale, sharpen skills, and drive results. Whether you're looking for ways to improve employee engagement or develop new employee engagement strategies, our platform can support your efforts to create a more engaged, innovative, and productive workforce. Ready to take the next step? Let us help you build your employee volunteer program and unlock the full potential of your team. Request a demo and speak to a member of our team today.