Employee engagement: strategy and ideas

Want to increase employee engagement across your organization — whether your team is in-office, remote, or hybrid? You’re in the right place.

Employee engagement has always been a key driver of productivity, retention, and overall business success. But in the age of flexible work, keeping employees motivated and connected requires more than just annual surveys or one-size-fits-all programs.

Today, organizations need modern employee engagement strategies, supported by the right tools, programs, and clear ways to measure engagement.

In this comprehensive guide, you’ll learn:

• What employee engagement is (with a clear definition)
• Why is employee engagement important?
• Employee engagement strategy
• Employee engagement action plan
• Creative employee engagement ideas and activities
• Employee engagement best practices and real-world examples

What is employee engagement?

Engaged employees don’t just complete tasks—they invest in their work and actively contribute to the company’s success. They go beyond job descriptions, innovate, and often serve as brand advocates both internally and externally.

Engagement differs from employee satisfaction, which is largely transactional and connected to pay, benefits, or perks.

A satisfied employee may perform well but isn’t necessarily driven to excel. An engaged employee, on the other hand, is motivated by a deeper sense of purpose and belonging.

Read: 5 ways to improve employee engagement with L&D

Why is employee engagement important?

Companies with highly engaged employees consistently outperform their competitors. Research shows that organizations with strong engagement report up to 21% higher profitability, improved productivity, lower turnover, and a more cohesive company culture.

Here’s a breakdown of the key benefits:

1. Better customer satisfaction

Engaged employees consistently go above and beyond to provide exceptional service.

For example, a salesperson may take extra time to ensure a customer fully understands a product, or a programmer may work diligently to resolve bugs for a client.

When employees take pride in their work, customers notice the difference, leading to increased loyalty and positive word-of-mouth.

2. Increased productivity and efficiency

Engaged employees are motivated to work harder and smarter.

They find ways to enhance the quality of their output without needing constant oversight. Unlike disengaged employees who may do the bare minimum, engaged workers use their initiative to exceed expectations and contribute to the organization’s success.

3. Reduced turnover

Engagement is a key factor in retaining talent.

Disengaged employees are more likely to leave their jobs, especially if they find better opportunities elsewhere.

On the other hand, engaged employees feel a deeper connection to their role and the organization, making them less likely to seek employment elsewhere.

This is crucial, as replacing a lost employee can cost up to 40% of their salary, not to mention the disruption it causes to the team.

4. Lower absenteeism

When employees are engaged, they are more likely to show up to work consistently.

They are invested in their work and enjoy contributing to the organization’s success.

In contrast, disengaged employees are more likely to take frequent sick days or show up late, which can negatively affect team dynamics and productivity.

5. Stronger company culture

Engaged employees contribute to building a positive company culture.

They are more likely to collaborate, mentor, and support their colleagues, creating an environment where everyone feels valued and motivated.

A strong company culture is essential for attracting and retaining top talent, and it often starts with high employee engagement.

7. Improved business outcomes

Companies that have engaged workers report 21% higher profitability and were scored 17% higher on productivity.

Engaged employees work harder, doing a better job, driving up customer satisfaction and loyalty, and bringing a great deal of value into the organization.

Engaged employees will increase profitability through their work, and often lead innovation within their team, department, or organization.

8. Fewer safety incidents

Engaged employees are more attentive and mindful of their work.

They care about doing things right, which naturally leads to fewer workplace accidents or safety incidents.

Additionally, they are more likely to suggest improvements or solutions that enhance safety measures, further reducing risks.

Proven employee engagement strategies that actually work

Building an effective employee engagement strategy requires a holistic approach.

It’s about understanding the unique challenges your workforce faces and addressing them through meaningful actions.

To begin, you’ll need to collect data—typically through an employee engagement survey (note: further in the blog)—and use the insights to shape your strategy.

There are seven main areas that have the most impact on employee engagement:

1. Work-life balance
2. Communication and goal setting
3. Organizational transparency
4. Autonomy and challenge
5. Rewards and recognition
6. Training and learning opportunities
7. Compensation and benefits

Depending on the results of your employee engagement survey, there will be certain areas in which your organization will want to focus on.

Selecting two or three which are the most urgent is a good place to start.

Here are some strategic actions and practical tips to improve engagement:

Tailor your approach

Different teams or departments may require different strategies.

For example, sales teams might thrive on competition and recognition, while developers may appreciate autonomy and a focus on personal growth.

Open communication

Establishing clear communication channels between leadership and employees is essential. This means creating regular opportunities for employees to voice concerns, share ideas, and provide feedback.

For instance, organizations like Google use weekly all-hands meetings where anyone can ask questions directly to leadership. This transparency helps build trust.

Provide clear goals and autonomy

Employees need to know their contributions matter. Leaders should set clear, measurable goals but give employees autonomy to achieve them. Research shows that people are more engaged when they feel in control of their work.

Consider tools like OKRs (Objectives and Key Results) to align team goals with the company’s mission.

Encourage work-life balance

The era of remote work has blurred the boundaries between work and home life, often leading to burnout.

Implementing flexible work hours, providing mental health resources, and discouraging after-hours communication can go a long way in showing employees that their well-being is a priority.

Companies like Salesforce and HubSpot have adopted policies to promote wellness, offering everything from paid mental health days to meditation programs.

Invest in learning and development

Upskilling is a win-win for both the company and its employees.

Create opportunities for continuous learning through online platforms, internal training programs, or mentorship.

When employees see a clear path for growth, they are more likely to remain engaged.

A great tool for this purpose is Valamis, where you can upskill and reskill your employees through personalized learning paths, tailored to meet their specific needs and career goals.

Read: 5 Ways on How to Improve Employee Engagement

Employee engagement action plan example

After your organization has chosen the areas in which you will focus, it is time to develop an employee engagement action plan.

It is not enough to simply say that you want to improve rewards and recognition, you must develop concrete, actionable steps to do so. This is done by creating initiatives.

For example, if an organization wants to focus on training and learning opportunities, here is how they could develop an action plan:

1. Organizational leadership decides which area they would like to focus on. In this example, it is training and learning opportunities.
2. Leadership would then decide who is responsible for leading the action plan. This should be a team from different levels of the organization, ideally made up of employees who show a high level of engagement already. This is a good opportunity to develop leadership skills in employees and to show that their contributions are valuable.
3. Leadership should agree on a budget, timeline, and meeting schedule for this team. Desired results should be clearly laid out, so that the team has a clear mandate for what they should achieve.
4. A team is gathered, instructed, and asked to develop a plan. They present this plan to the leadership, with the steps that they will take to achieve their results. For example, they might develop an initiative for upskilling employees by pairing them with senior members of their team. They could recommend using a talent development platform, researching which platforms would work for this purpose, showing a timeline, expected costs, and projecting what the outcome of this initiative would be.
5. The leadership team will adopt this plan, or make adjustments to it based on organizational needs and goals. The budget is approved, and the timeline is set.
6. As the team proceeds with this process, there will be regular presentations to the leadership to update on progress, make necessary adjustments, and expand the program, if needed.

Laying out a clear path to how this initiative will be achieved is the best way to ensure its success.

Employee engagement ideas and activities

Engagement can be fostered through a variety of creative ideas and activities that make employees feel connected to the company, even when working remotely.

Below are some ideas that can easily be implemented and are proven to be effective.

Let employees design their own job roles

Giving employees the opportunity to redefine or expand their roles not only empowers them but also helps you uncover hidden talents.

For instance, a content writer might have a passion for data analytics, which could open new opportunities for both the individual and the team.

Create a “reverse mentoring” program

In this setup, younger employees mentor more senior ones on topics like digital trends, technology, or even diversity.

This creates a sense of shared knowledge and encourages respect across different levels.

Host virtual or in-person team-building exercises

Whether it’s a virtual escape room or an in-person hike, these events allow employees to bond in a fun, stress-free environment.

Team-building doesn’t have to be limited to games—activities like volunteering for a cause as a team can also work wonders in creating a sense of shared purpose.

Offer regular “Ask Me Anything” (AMA) sessions with leadership

Employees crave transparency, and nothing fosters it like giving them access to leadership in open Q&A formats.

This can be done via Zoom/Teams for remote workers or in a casual in-office setting

Incorporate wellness challenges

Physical and mental health play an essential role in employee engagement.

Organize company-wide wellness challenges, whether it’s step competitions or mindfulness exercises.

Tools like Fitbit or Headspace offer corporate programs to help with this.

Personalize recognition

Everyone appreciates being recognized, but not everyone likes public shoutouts.

Offer different recognition styles—some employees might prefer a quiet note, while others thrive on public praise.

Tools like Bonusly make it easy to give personalized micro-rewards that employees will love.

Best practices and examples for employee engagement

Real-world examples can provide inspiration for your own strategies.

Here are a few best practices that have been implemented by leading companies:

Salesforce: Championing employee well-being

Salesforce has implemented the “VTO” (Volunteer Time Off) program, which allows employees to take paid time off to volunteer.

This not only enhances the company’s reputation but also makes employees feel that their personal values align with the company’s mission.

Netflix: Radical transparency and autonomy

Netflix empowers its employees by offering high levels of autonomy and holding them accountable for results rather than processes.

Their famous “Freedom and Responsibility” culture encourages employees to take ownership of their projects, which has led to significant innovation within the company.

Zappos: Cultivating a unique company culture

Zappos is known for its quirky and fun work environment, where employees are encouraged to express their personalities.

Zappos regularly organizes fun activities, like costume days and karaoke contests, which enhance employee satisfaction and engagement by making the workplace feel more personal and less formal.

Read more about Zappos culture

Airbnb: Investing in community and connection

Airbnb places a strong emphasis on employee connection, organizing regular “Global Wellness Days” and ensuring that employees have access to wellness resources like yoga, meditation, and mental health services.

Their approach focuses on ensuring employees feel cared for, even while working remotely.

Final thoughts

improving employee engagement isn’t about quick fixes or flashy initiatives—it’s about genuinely understanding your people and what drives them. Building a culture where employees feel heard, supported, and motivated takes consistent effort, but the payoff is undeniable.

Engaged employees stay longer, work smarter, and contribute more to the success of your organization. It’s not always easy, but by focusing on meaningful actions—like real development opportunities, honest feedback, and clear communication—you can create a workplace where people truly want to give their best every day. Stick with it, keep listening, and the results will speak for themselves.