One of the most common woes echoed across HR departments worldwide is how to improve employee engagement. There's a clear link between how much people care about their work - and the people they work with - and their performance.

But it's an enormous challenge to change how people feel. Sometimes, HR can drive quick fixes by introducing new employee perks or more generous policies. But inevitably, the conversation ends up focusing on culture, particularly on leaders. After all, managers account for up to 70% variance in employee engagement. 

So while employee engagement depends on multiple factors, the single most critical factor is simply how people manage their own emotions and how they treat one another. That's why emotional intelligence is so crucial to driving employee engagement.

The state of employee engagement

While every HR person is working hard to improve employee engagement, the numbers can often prove disheartening. Currently, employee engagement has hit it's lowest rate in more than a decade in the U.S., with only 30% of employees reporting that they are engaged.

Gallup's research showed that employees increasingly feel detached from their employers. Employees are struggling to understand their roles and how they connect to their company's mission and purpose. Worse, fewer employees say that they feel someone at work cares about them. 

The rapidly dropping statistics are likely a reflection of employee fatigue. During the pandemic, employee stress was high, but engagement and purpose scores also spiked. Employees responded to the increased efforts of organizations to demonstrate empathy and support their wellbeing.

However, the end of the pandemic also brought on volatile swings in the labor market and rapid changes in remote, hybrid, and in-person work requirements. During the same time, Gen Z has entered the labor force amid unusual and constantly changing circumstances. And of course, the introduction of generative AI has caused employee trust to plummet, with less than third of employees saying they trust senior leaders at their organization to do what's right.

The result? A workforce that is less engaged than ever at a time when it's never been more necessary.

What high-performing organizations do differently

Despite the downward trend, there's reason for hope. The research also showed that high-performing organizations can reach engagement levels of 70% and beyond. These organizations do several things to create stronger cultures:

1. They build engagement at every interaction in the employee-manager lifecycle. That includes investing in manager development, which helps to promote trust.

2. They support wellbeing. Successful organizations show care about people both at work and in their personal lives. They do this both through their policies and by supporting better manager interactions.

3. They focus on communication and listening. This is easier said than done. Many organizations prioritize communication, but only do so from the top down. More successful organizations also focus on developing managers' active listening skills, and translating that feedback into action.

How emotional intelligence can impact employee engagement

Invest in your employees and cultivate a human-centered environment so the humans in your organization can thrive. Humanizing the workplace can have a significant impact on employee morale, productivity, and satisfaction which can significantly impact the bottomline.

Organizational culture and performance can change for the better when you hone in on the employees as humans rather than just as members of the workforce.

Here are some of the research-backed returns you can see from your investment in increasing employee engagement:

1. Improved Productivity

   Gallup (2020) found that engaged employees are up to 18% more productive and have 81% lower absenteeism. When workers are motivated by meaningful work, the resulting gains in worker productivity add up to over $9,000 per worker, per year.
   
   

2. Increased Profitability

   Gallup found that engaged employees are associated with 24% higher profitability for the company.
   
   

3. Decreased Employee Turnover

   When employees feel valued and supported by their employer, they are more likely to be loyal and dedicated to their company. An increase in employee engagement corresponds to a 43% reduction in employee turnover. This decrease in turnover has big financial implications, as the cost of replacing an employee can range from half to up to four times their salary.
   
   

4. More Agility

   Is your business looking to work in an agile way? Harvard Business Review notes that “agile does not work without psychological safety.” Why? Because while agile frameworks can provide a robust set of processes and tools, they all rely on the way the team interacts. Good communication, respect, and effective collaboration are prerequisites for agile innovation.
   
   

5. Improved Company Reputation

   Companies that invest in their employees are often viewed as more alluring places to work, interesting top talent and establishing the company’s reputation in the marketplace. “Only 2% of recruitable workers say great workplace culture isn’t important for their next role” (Great Place to Work, 2022).
   
   

6. Better Employee Engagement

   When employees are given the resources and support they need to grow and develop, they are more likely to be engaged and invested in the success of the company.

Engagement comes down to emotions

If companies want to see engagement go up, they must invest in their emotional culture. When employees feel valued, respected, and supported, they are more likely to be engaged, motivated, and productive in their work. Additionally, a human-centered workplace culture can improve employee satisfaction, reduce turnover rates, and attract top talent. 

By investing in your employees as individuals, with unique needs, aspirations, and motivations, you cultivate a culture of respect, trust, and support that will have a lasting impact on the success of your organization. By treating employees with compassion, empathy, and understanding, companies can humanize their workplace and increase profitability and shareholder value.

We’re here to help

Our programs help to increase employee engagement by giving you practical, science-based tools that you can use right away to increase well-being, improve focus, build resilience, and foster innovative collaboration. Learn more about how you can improve emotional intelligence in your organization.