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The Ultimate Guide to Employee Engagement: Four Types That Will Drive Your Business in 2023

In 2023, employee engagement is no longer a buzzword or a feel-good HR initiative – it's a critical driver of business success.

So, why is employee engagement so important?

Studies show that engaged employees are more productive, innovative, and committed to their organisations, resulting in higher customer satisfaction, greater profitability, and increased shareholder value.

On the other hand, disengaged employees can have a significant negative impact on the bottom line, including higher turnover rates, lower quality of work, and decreased morale.

In today’s rapidly changing business landscape, organisations that prioritise employee engagement can have a significant advantage in attracting and retaining top talent, building a strong employer brand, and achieving long-term success.

What is Employee Engagement?

Employee Engagement is the intangible quality that inspires employees to give their all, go the extra mile, and take ownership of their work.

When employee engagement is high, it fuels productivity, innovation, and collaboration. It creates a positive feedback loop where employees feel fulfilled and happy at work, which in turn leads to better business outcomes.

How do you create a culture of Engaged Employees in the workplace?

As an HR leader, it all starts with listening to your employees, understanding their needs and aspirations, and creating a sense of shared purpose and vision.

It means providing opportunities for growth and development, recognising and rewarding good work, and building strong relationships based on trust and respect.

By identifying the different types of employee engagement, you can tailor your approach to address the specific needs and concerns of each team member, ultimately leading to a more engaged and motivated workforce.

What are the four types of Employee Engagement

To create a highly engaged workforce in 2023, companies must focus on the four types of employee engagement:





Let's explore each type in more detail and identify strategies to foster them in the workplace.

I. Emotional Engagement

Emotional engagement refers to the emotional connection an employee feels towards their job, colleagues, and the organisation. It involves a sense of belonging, trust, loyalty and commitment to the company's mission and values.

Highly emotionally engaged employees are more loyal, productive, and satisfied with their work.

Strategies to increase emotional engagement:

  1. Build a culture of trust and respect: Encourage open communication and active listening, and model respectful behaviour from the top down.
    For example, hold regular town hall meetings where leaders address employee questions and concerns, and ensure that all employees have access to confidential channels to report any issues or complaints.
  2. Celebrate successes and recognise good work: Recognise and reward excellent performance regularly, both publicly and privately.
    For instance, establish an employee recognition program that acknowledges outstanding work and contributions, or create a "shout-out" board or a dedicated Slack channel where colleagues can recognise each other's achievements,
  3. Encourage work-life balance: Offer flexible work arrangements, such as telecommuting, flexible schedules, and paid time off.
    Establish a telecommuting policy that allows employees to work from home a certain number of days per week, or offer dedicated vacation time.
  4. Foster a sense of purpose and meaning: Connect employees to the company's mission and values and show them how their work contributes to the company's success.
    Hold regular meetings
    where leaders discuss the company's goals and how each employee's work contributes to achieving those goals. Have 1-on-1 conversations around mentorship and opportunities for employees to volunteer and participate in company-sponsored learning and development projects and courses.

II. Cognitive Engagement

Cognitive engagement refers to an employee's mental and intellectual connection to their work. It involves a sense of challenge, creativity, and problem-solving. Cognitively engaged employees are more innovative, productive, and invested in their work.

Strategies to increase cognitive engagement:

  1. Encourage learning and development: Offer training programs, workshops, and educational opportunities that help employees develop new skills and stay up-to-date with the latest trends and technologies in their field.
    Provide access to online learning platforms such as Coursera or Skillshare, or create an internal mentoring program where employees can learn from more experienced colleagues.
  1. Foster a culture of innovation: Create an environment where employees feel comfortable sharing their ideas and suggestions, and provide them with the resources and support they need to implement those ideas.
    Establishing a brainstorming program where employees can pitch new ideas for products or services, or creating an innovation lab where employees can experiment with new technologies and ideas can foster a culture of innovation among employees.
  1. Provide challenging work: Assign projects that require employees to develop new skills and abilities, and provide opportunities for them to take on leadership roles.
    For instance, create cross-functional teams to work on complex projects that require collaboration across departments, or assign a stretch project that requires employees to step outside their comfort zones.
  1. Encourage problem-solving: Create an environment where employees are encouraged to identify problems and propose solutions, and provide them with the resources and support they need to implement those solutions.
    You can engage employees from different teams to help identify and address process inefficiencies, and create a suggestion box where employees can submit ideas for improving work processes.
  1. Provide autonomy and decision-making authority: Empower employees to make decisions and take ownership of their work, and provide support and guidance when needed.
    Allow employees to set their own goals and priorities within the context of the company's overall objectives, or establish a cross-functional team with decision-making authority for a specific project or initiative.

III. Behavioural Engagement

Behavioural engagement involves a sense of ownership, accountability, and commitment to achieving the company's goals. Highly behaviourally engaged employees are more likely to be resilient, take initiative, face challenges, work collaboratively, and be accountable for their actions.

Strategies to increase behavioural engagement:

  1. Set clear expectations: Provide employees with detailed job descriptions, performance metrics, and clear goals and objectives.

    Leaders can establish specific and measurable performance goals for each employee, or use OKRs (Objectives and Key Results) to track progress towards specific goals.
  1. Have daily team catch-ups: ‘Stay meetings’ are short daily meetings that help remote teams  stay connected and coordinated by sharing their work progress, discussing the challenges they are facing, and planning their workday.
    The goal is to align everyone's priorities and make sure that everyone is on the same page. This strategy can increase behavioural engagement by improving communication and collaboration among team members.

    For example, a marketing team could hold a daily stay meeting to discuss their ongoing campaigns, review analytics, and plan their tasks for the day. By doing so, team members can ensure that their work is aligned and that they are all working towards the same goals.
  1. Tackle employee burnout: To address burnout, employers can provide employees with adequate resources, support, and a healthy work-life balance.

    Offering flexible work schedules, providing mental health resources, and promoting work-life balance programs can help tackle burnout among employees.
  1. Set up activities: Employers can provide employees with opportunities for activities that boost engagement, such as team-building exercises, training programs, or social events.

    For instance, a software development team could have a hackathon or coding competition, where team members can collaborate and showcase their skills.
  1. Boost physical activity: Regular physical activity can improve mood, reduce stress, and increase engagement. Employers can encourage physical activity by promoting wellness programs, providing gym memberships or offering standing desks.

    An office could also have a weekly yoga or fitness class to encourage physical activity and provide a healthy outlet for stress.

Know more: Top 5 Fun Friday Games And Activities To Keep Your Team Engaged

IV. Social Engagement

Social engagement refers to an employee's social connection to their job and the people they work with. It involves a sense of community, belonging, and support. Highly socially engaged employees are more likely to be satisfied with their work and have better mental health.

Strategies to increase social engagement:

  1. Host company-wide volunteer events: Volunteering can bring people together and provide a sense of purpose. By hosting company-wide volunteer events, employees can work together towards a common goal outside of their typical work responsibilities.
    HR Leaders can organise a day of volunteering with a local NGO or plan a community park or beach cleanup drive.
    You can also host company culture events that can showcase a company's values and build a sense of community within the workplace. For example, a diversity and inclusion training workshop, celebrating cultural holidays by organising a potluck meal or a company-wide talent show.
  1. Start a book club or learning group: A book club or learning group can provide a shared interest for employees to connect over. It can also provide opportunities for professional development and learning.
    You could start a book club or a learning group focused on a new programming language.
  1. Organise team-building events: Team-building events can foster social connections and build a sense of community within the workplace. These events can be fun and interactive and can range from company retreats to office game nights.
    You could organise a team-building scavenger hunt, a company-wide trivia competition, or a group outing to an escape room.
  1. Create a buddy system: A buddy system pairs new employees with a more experienced colleague to provide support and guidance. This can help new employees feel welcomed and supported in their new workplace and can foster social connections.
    One HR initiative could be, pairing new employees with a buddy who can answer their questions, introduce them to their colleagues, and help them navigate their new roles and workplace.

Know more about: The Advantages Of Creating A Buddy System At Work

How can you improve Employee Engagement in remote or virtual teams?

Employee engagement is crucial for maintaining a productive and motivated workforce. However, managing engagement in remote or virtual teams can be challenging.

Here are some ways to improve employee engagement in such teams:

  1. Provide funds for home office setup
    To create a comfortable workspace for remote employees, consider investing in ergonomic office equipment such as chairs, desks, and monitors, and provide funds or reimbursements for home office setup.
  2. Host virtual meetings and informal social events
    Organise virtual social activities like team building activities, coffee or lunch roulette, virtual happy hours, and fun-Friday games.
  3. Celebrate together, even virtually
    Plan virtual meet-ups to celebrate holidays or significant company milestones, and come up with fun themes based on the occasion.
  4. Walk and talk virtually
    Encourage remote employees to take walking meetings by pairing them up and setting up shared calls for casual conversations.
  5. Avoid FOMO (Fear Of Missing Out)
    Ensure that remote employees don't feel left out by offering them similar benefits to office workers, such as free lunch vouchers or other perks.
  6. Plan wellness challenges
    Promote wellness by setting up challenges like the 10,000 steps challenge, water intake tracking, and digital detox challenges.
  7. Offer health and wellness vouchers
    Provide vouchers or reimbursements for gym memberships, yoga classes, fitness app subscriptions, or wearable devices.
  8. Show appreciation
    Reward remote employees for their achievements with points, swag, or meaningful experiences. Set up a gratitude wall or kudos channel on Slack to encourage appreciation and recognition.

Read more: Fun Friday: 5 Games To Engage With A Remote Team

How will Employee Engagement Elevate Business Goals and Success?

Employee engagement can elevate business goals in several ways. Investing in employee engagement can lead to a more successful and sustainable business

Firstly, engaged employees tend to be 80% more productive and motivated, which translates to better performance and higher revenue.

Secondly, they are 2X more likely to provide exceptional customer service to your clients, which can lead to increased customer satisfaction and loyalty.

Thirdly, engaged employees tend to stay with the company 5X longer, reducing turnover costs and preserving institutional knowledge.

Finally, a positive work environment and engaged workforce can attract top talent and give the company a competitive edge with positive branding across online communities, social media and via referrals or word of mouth.

What are some of the best Employee Engagement Metrics?

Employee engagement metrics are important because they help companies identify areas for improvement, retain employees, boost productivity and customer satisfaction, attract top talent, and increase profitability.

By measuring employee engagement through various metrics, companies can take corrective actions, enhance job satisfaction, and improve overall performance.

Engaged employees are more productive, committed, and likely to stay with the company for a longer time, resulting in better outcomes for both employees and the organisation.

  1. Employee satisfaction surveys: These surveys measure employees' satisfaction with their job, work environment, and company culture.
  2. Employee Net Promoter Score (eNPS): This metric measures how likely employees are to recommend the company as a place to work.
  3. Employee retention rate: This metric measures the percentage of employees who remain with the company over a specific period.
  4. Absenteeism rate: This metric measures the percentage of employees who are absent from work without prior approval.
  5. Employee productivity: This metric measures the efficiency and output of employees in completing their tasks.
  6. Employee participation in company-sponsored activities: This metric measures the level of participation of employees in company-sponsored activities, such as training sessions, team-building events, and volunteer activities.
  7. Employee feedback and suggestions: This metric measures the number of feedback and suggestions submitted by employees through various channels, such as suggestion boxes or online platforms.
  8. Employee recognition and rewards: This metric measures the frequency and effectiveness of employee recognition and rewards programs, such as employee of the month programs or bonuses for exceptional performance.

Continue reading: How to Measure the Impact of a Corporate Employee Wellness Program?

How can Nova Benefits help you make the most out of these employee engagement strategies?

In a nutshell, employee engagement is the key to unlocking your business's full potential. It's all about creating a work culture where employees feel valued, supported, and motivated to perform their best.

And the good news is, you don't have to do it alone!

With the strategies we've outlined in this blog, like effective communication, recognition and feedback, and employee benefits, you can start building a positive work environment that everyone will love.

So what are you waiting for? It’s time to invest in your employees' satisfaction and well-being.

Our team of experts is here to help you every step of the way, from creating a customised benefits package to implementing effective engagement strategies.

Let's work together to build a better workplace for everyone.

Schedule a free consultation call today and take the first step towards becoming an employer of choice.


  1. How can employee engagement be measured?
    Employee engagement can be measured through various surveys and feedback mechanisms such as employee satisfaction surveys, pulse surveys, focus groups, and exit interviews. These methods can help identify the level of engagement among employees and specific areas that need improvement.
  2. Can employee engagement be improved in remote or virtual teams?
    Yes, employee engagement can be improved in remote or virtual teams. It's important to provide clear communication and expectations, offer opportunities for team building and social interaction, and encourage employee feedback and participation. Providing adequate resources, such as technology, and flexibility in work arrangements, can also help improve employee engagement in remote or virtual teams.
  3. What are the consequences of low employee engagement?
    Low employee engagement can lead to decreased productivity, decreased morale, higher absenteeism and turnover rates, decreased quality of work, and increased costs associated with recruiting and training new employees. In addition, low employee engagement can negatively impact customer satisfaction and ultimately affect the bottom line.
  4. How can managers improve employee engagement?
    Managers can improve employee engagement by providing regular feedback and recognition, offering opportunities for growth and development, providing support and resources, communicating clearly and transparently, fostering a positive and respectful workplace culture, and creating a sense of purpose and meaning.
  5. Can employee engagement be improved through employee wellness programs?
    Yes, employee wellness programs can improve employee engagement by promoting a healthy work-life balance, reducing stress and burnout, and improving physical and mental health. This, in turn, can lead to increased productivity, better morale, and higher job satisfaction.
  6. Is employee engagement more important than employee satisfaction?
    Employee engagement and employee satisfaction are both important, but employee engagement is often considered a stronger predictor of business success. While employee satisfaction focuses on how employees feel about their jobs and the company, employee engagement goes beyond this to measure how committed, passionate, and invested employees are in their work.
  7. How can employee engagement be maintained during times of change or uncertainty?
    During times of change or uncertainty, it's important to provide clear communication and transparency, offer opportunities for employee feedback and participation, provide support and resources, and foster a positive and respectful workplace culture. This can help maintain employee engagement and trust in the company's leadership.
  8. Can employee engagement vary by industry or job type?
    Yes, employee engagement can vary by industry or job type. For example, industries that require high levels of creativity and innovation may require different strategies to foster cognitive engagement than industries that rely more on routine tasks. Similarly, job types that involve a high level of customer interaction may require different strategies to foster emotional engagement than jobs that involve more solitary work.
  9. What role do incentives and rewards play in employee engagement?
    Incentives and rewards can play a significant role in employee engagement by recognising and rewarding good work, promoting a positive workplace culture, and fostering a sense of purpose and meaning. However, it's important to ensure that incentives and rewards align with the company's values and goals and that they are applied fairly and consistently.
  10. How can employees be empowered to improve their own engagement?
    Employees can be empowered to improve their own engagement by taking ownership of their work, seeking out opportunities for growth and development, providing feedback and suggestions to their managers, and fostering positive relationships with colleagues. This can help create a culture of empowerment and accountability that supports employee engagement and long-term success.
  11. What is the cost of low employee engagement?
    Low employee engagement can result in increased absenteeism, decreased productivity, and higher turnover rates, which can cost a business up to 34% of an employee's annual salary.
  12. How much should I budget for employee engagement initiatives?
    There is no one-size-fits-all answer to this question. As a general rule of thumb, experts suggest that you allocate between 1-2% of your total payroll budget towards employee engagement.
  13. How often should I survey my employees to measure engagement?
    Experts suggest that companies should conduct employee engagement surveys at least once a year to measure the effectiveness of their initiatives and identify areas for improvement.

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