The Link Between Employee Engagement and Organisational Performance

Many studies have found a link between engagement and organisational performance. Generally speaking, employees with high engagement levels will be more productive when compared to employees who have low engagement. This will improve operational efficiency and boost sales revenues and profits.

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How employee engagement affects performance

Customer satisfaction

An engaged workforce is better equipped to deliver excellent customer service. According to a study by HubSpot, 79% of companies with engaged employees had a significantly better customer experience than companies with low engagement levels. High-quality customer service will increase customer retention and drive organisational performance and profits.


Engaged employees are more likely to work diligently and complete work tasks quickly and to a high standard. This will increase workplace productivity and maximise your return on investment.

Employee morale

Engaged employees will be happier and more motivated in the workplace. Happy employees will generally be more loyal and less likely to look for job opportunities elsewhere. An employment report by Gallup found that organisations with high employee engagement levels have 65% lower turnover than companies with low engagement.


Overall, organisations with engaged employees are 21% more profitable than organisations without. Investing in strategies to increase employee engagement can be an effective way to ensure steady profit growth.

Tips to improve employee engagement

Prioritise health & wellbeing

A company health and wellness initiative is an excellent way to improve employee engagement. Healthy and happy employees will be more engaged in the workplace and perform better. Some simple ways to support a healthy lifestyle include encouraging your staff to maintain a work-life balance, providing healthy workplace snacks, and offering free gym memberships.

Allow remote working

A recent survey by found that 98% of employees would like to work remotely either full or part-time post-pandemic. Allowing flexible work schedules and remote working can boost employee satisfaction and engagement, leading to higher productivity and revenues.

Invest in smart tech

Smart tech can streamline business processes, improve workplace efficiency, and reduce labour costs. For instance, our smart locker solutions can reduce the admin time associated with locker management by 94%. Contactless smart lockers can also improve productivity and enhance the employee experience by digitising locker allocation.

Here is some other smart technology that can boost employee engagement and performance:


  • Remote communication and collaboration platforms 
  • Cloud-based storage solutions
  • Project management systems  
  • Time recording apps 

Provide feedback

Employees want regular feedback, and it affects their levels of engagement. Encourage your managers to arrange weekly or bi-weekly catchup sessions with their teams to provide feedback on their performance. Meaningful feedback will motivate employees and help them improve their workplace performance.

Reward achievements

Employees who are recognised for their hard work will go the extra mile and perform better. Make sure that you acknowledge your employees and reward their efforts. Popular employee rewards include bonuses, additional holiday days, and shopping vouchers. Recognition not only improves employee engagement but can also increase productivity and loyalty to the organisation, leading to higher retention. Check out this article by The Linslade Team for nine easy ways to reward your employees.


The improved performance of engaged employees can be seen in several ways. Studies have shown that companies with high employee engagement excel in customer service and achieve high productivity and profits.

Smart employers should focus on employee engagement and take steps to improve workplace engagement levels. These tips will help you boost engagement levels in your business and drive organisational performance.

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