8 Key Drivers of Employee Engagement (and How to Promote them Today)

If you work in HR, you know that fostering “engagement” goes much deeper than just throwing a fun social activity, especially if these activities are mandated. “Forced fun is not exactly a driver of employee engagement. In other words, you can’t expect mandated pizza parties and team-building activities to reduce employee turnover. Although these initiatives can provide a temporary morale boost and help with team bonding, true employee engagement goes much deeper than these surface-level initiatives. 

That said, the benefits of employee engagement are well documented. A growing body of research shows that more engaged employees are happier, more productive, and stay longer within their organizations. All these factors have a tangible impact on the organization's performance.

So, if social events don’t drive higher employee engagement, what does? This article presents recent workplace research and discusses the most critical drivers of employee engagement. We’ll also offer some concrete examples of initiatives you can easily implement today to encourage these key drivers in your workplace. If you’re getting started with an employee engagement plan, recognizing these key drivers is a key step in systematically tackling the engagement issues in your workplace.

8 Key Drivers of Employee Engagement (and How to Promote them Today)

1. Meaningful Work

Meaning at work might seem like a fluffy, vague concept. But it’s one of the most important drivers of employee engagement. In this Psychology Today article titled How to Foster Meaningful Work, the author discusses the definition of meaningful work, “It’s the subjective experience you have that your work matters, facilitates personal growth, and is significant and worthwhile.”

Of course, not every little task an employee performs has to be meaningful. It’s more about the bigger picture impact of their work, how employees feel and relate to their responsibilities, and how those duties align with their goals and personal growth plans.

Many leaders may feel overwhelmed and wonder how to encourage such an abstract idea. The author offers some concrete suggestions, like 

• Continuously communicate how your employees' work impacts the bigger picture—your organization, clients, and even the larger social impact of the work. 
• Nurture potential by putting employees on projects that challenge them and match their professional goals.
• Give employees flexibility and autonomy in how they perform and complete their work.

As you can see, fostering meaningful work doesn’t have to involve rolling out shiny new initiatives that require tons of resources and time to set up and run. It may be as simple as leaders communicating the impact of their employees' work and aligning employee tasks and duties with their interests and passions. 

2. Leadership Quality

It's a well-known fact that employees perform better under competent leaders. Yet, the reality is that many companies are wrestling with subpar leadership, leading to significant issues in employee engagement. 

Gallup recently reported that only 23% of U.S. employees strongly agree that they trust their organization's leadership. Calm's yearly Voice of the Workplace report showed that about half (49%) of employees claim their manager genuinely cares about their well-being. Those are some discouraging statistics. 

Fortunately, effective leadership can be taught and fostered. Business leaders, HR professionals, and managers have the power to implement changes and improve the leadership in their organizations. For example, leadership training, mentorship programs, and anonymous surveys to gauge leadership quality can be implemented to ensure your company's leadership meets standards that help employees thrive.

3. Opportunities for Development and Growth

Work is a core pillar of modern life. What else could explain the most common question people ask when they first meet, "What do you do for work?" Work goes beyond something we do for a paycheck; it's a core driver of our identity. 

As a result, many people see work as a vehicle for growing, learning, and evolving as professionals and people. Of course, some people are in a phase in their careers where they are happy just going to work, executing their job well, and nothing more. Yet, many people desire to be stimulated and challenged at work.

A recent BetterWorks State of Performance Enablement report revealed this truth and found that 86% of employees say skill development and coaching are important to them, but only 54% are receiving it. At the same time, a report by Canadian health tech company Dialogue found that 63% of HR professionals agree that employee career development is a significant challenge for their business. Simply put, Employees want to be challenged and developed, but practically speaking, businesses and their HR teams are struggling to meet this demand; there aren't unlimited promotions to go around to everyone who wants it.

In the book Promotions Are So Yesterday, workplace expert and author Julie Winkle Giulioni addresses the common issue of "how to offer growth when promotions are in short supply."

A few of the suggestions she offers:

• Re-define what "growth" is: Promotions or title changes should not be the only way we define growth or career development. Moving beyond this traditional definition will open up countless opportunities to offer "growth" to your employees.
• Build employees' confidence: Help identify areas of strength and weakness and nudge employees out of their comfort zones.
• Help employees build connections: Support employees in fostering internal connections. For example, can you help employees with the following: Attending an event, meeting key leaders, or leading a meeting?

4. Recognition and Rewards

Imagine going to work and never getting positive remarks or “good job” from your leaders or peers. It wouldn’t be too long before you felt resentful and burnt out. Paychecks are important—as we will see later in this article, but they cannot replace the positive feelings that genuine recognition can evoke.

A wealth of research supports the importance of recognition in the workplace. For example, a recent Gallup research report found that employees who receive great recognition are 20X as likely to be engaged as employees who receive poor recognition. Recognition is even critical to more physically demanding work environments like manufacturing and production. A Manufacturing Institute report showed that workers who felt valued were more than 4X as likely to report high levels of work engagement and less likely to feel stressed out on a typical workday. 

a recent Gallup research report found that employees who receive great recognition are 20X as likely to be engaged as employees who receive poor recognition.

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That said, there are many types of employee recognition in the workplace—from casual “good jobs” to more formal years of service programs. Organizations can grow appreciation in the workplace in various ways.

Some examples of employee recognition programs that leaders can be implemented in a workplace include:

• Peer-to-peer recognition: Peer-to-peer recognition programs can be facilitated through digital platforms like Qarrot, where employees can send kudos, thank-you notes, or points redeemed for rewards.
• Anniversary and milestone awards: Celebrating work anniversaries and significant milestones is a great way to show appreciation for long-term commitment and loyalty. These awards can be given for milestones such as 1, 5, 10, or 20 years of service.
• Social media shoutouts: Highlighting employee achievements on platforms like LinkedIn, Facebook, or the company’s blog makes the employee feel valued and showcases the company’s positive culture to a wider audience.

There are countless ways businesses can start fostering a culture of recognition. For organizations new to recognition programs, the best approach is to start with a small initiative and work your way up from there. 

5. Work-Life Balance

The pandemic forced people to reconsider work-life balance; people started reevaluating their priorities and values around work. As a result, hustle and burnout culture came under scrutiny, and work freedom and flexibility became one of the most important factors driving employee happiness and engagement. 

A Randstad Workmonitor report found that work-life balance now ranks as highly as pay on talent's priorities (93%)—far ahead of any other category. Another report by Canadian healthtech company Dialogue found that work-life balance is a top contributor to employees' mental health after financial situation and job satisfaction.

Work-life balance has become a core consideration for candidates and a powerful driver of employee engagement. Thankfully, employers can help protect employees' work-life balance in many ways, both at the higher policy and program level and at the managerial level. 

For example, at the organizational level, companies can create initiatives for flexible work hours and remote work options. At the managerial level, clear boundaries can be established around communication expectations outside work hours. Showing employees that the organization and leadership care about protecting their work-life balance can improve employee engagement and lead to a more productive and happier workforce.

6. Autonomy and Empowerment

Autonomy and empowerment are vital drivers of employee engagement because they tap into the basic human need for control. When employees are free to make decisions and feel empowered to take ownership of their work, it fuels their intrinsic motivation—meaning they're driven by the internal satisfaction of the task rather than external rewards. 

According to self-determination theory (SDT), a well-established psychological model, humans are naturally motivated when they feel competent, connected, and autonomous. In other words, people are often motivated by external factors such as money, awards, and prestige (i.e., extrinsic motivation); however, self-determination theory focuses primarily on internal sources of motivation, such as a need to gain knowledge or independence (i.e., intrinsic motivation).

This sense of autonomy doesn't just make people feel good; it actually boosts their engagement, creativity, and overall job satisfaction. Empowered employees are more likely to be passionate about their work, leading to better performance and a more vibrant workplace.

Organizations can help drive employee engagement by fostering greater employee autonomy and empowerment. This can be accomplished at higher levels through official policies and programs, but it can also be achieved in smaller, everyday ways at the team level. 

For example, organizations can offer flexible work arrangements, allowing employees to work from home or even abroad for a given period of the year. On a team level, managers can give some flexibility over employees' schedules or give employees some input into their goals, tasks, and responsibilities. 

7. Communication and Transparency

Dishonesty, distrust, and fear are the opposites of healthy work cultures. Doing your best work is impossible when you are tense and on edge. In other words, a sense of safety and security in the workplace is vital to employee happiness and productivity. Organizations and leaders must provide employees with a sense of trust. 

When leaders are open and transparent about decisions, goals, and challenges, employees feel more connected and valued, knowing they’re in the loop. This clarity helps reduce uncertainty, which is a significant factor in reducing stress and boosting motivation. 

Unfortunately, recent employee engagement statistics show some bleak numbers in this area. According to recent Gallup findings, employee trust in leadership has significantly declined in recent years, with only 23% of U.S. employees “strongly agreeing” that they trust their company’s leadership.

Thankfully, organizations can implement strategies for improving organizational communication and trust. At the organizational level, leaders can hold regular all-hands meetings to discuss the company’s goals, challenges, and progress. Accessible channels for sharing company updates can also be set up, which can keep everyone informed and aligned. 

Zooming in on a team level, managers can hold frequent check-ins, encourage open dialogue, and actively listen to concerns. Executing an open-door policy can make it easier for employees to voice their thoughts while providing regular feedback.

8. Fair Compensation and Benefits

We couldn't finish this article without mentioning compensation. Of course, pay isn't the only factor driving employee engagement, but it's a crucial baseline factor. When employees feel fairly compensated, it sends a clear message that their work is valued and that the organization respects their contributions. In other words, ensuring fair pay directly addresses basic human needs for security and recognition.

Looking at classical psychological theories like Maslow's hierarchy of needs, we can see that financial security is fundamental and needs to be met before humans can feel motivated to work towards and focus on higher-level motivations like achievement and growth. Seeing results like this one from Calm's yearly Voices of the Workplace Report makes sense. It shows that employees' top mental health stressor in 2024 is the cost of living/inflation. When people are not able to meet these fundamental needs their mental, emotional, and even physical health can suffer.

This research suggests that the financial stress of not being able to make ends meet or keep up with the cost of living has a significant detrimental impact on people's mental health. For employers, this has substantial implications. People's work performance, concentration, and productivity suffer when they are chronically stressed and worried about their living situations and finances. To that end, ensuring employees are being paid fairly and given a wage that allows them to meet their basic living requirements is critical to protecting employee engagement.

Final Thoughts

Employee engagement is a multifaceted and deeply rooted aspect of organizational success.

While it may be tempting to rely on surface-level activities like social events or extra snacks, true engagement requires a more thoughtful and comprehensive approach. By focusing on core drivers like meaningful work, quality leadership, and, recognition, organizations can create an environment where employees feel valued, motivated, and connected to their work.

Implementing these drivers of employee engagement isn’t about making sweeping changes overnight. Instead, it's about consistently cultivating a workplace culture that prioritizes these core elements, leading to a more engaged, productive, and loyal workforce. Remember, engagement is an ongoing process, not a one-time initiative. By taking the time to understand and address what truly drives your employees, you’ll be investing in the long-term health and success of your organization.