What is the relationship between employee engagement and productivity?

What is the relationship between employee engagement and productivity?

The link between engagement and productivity is a fundamental element in any organization’s success. Companies that prioritize engaging their employees are more likely to experience higher motivation, employee morale, creativity, and, ultimately, increased output. 

Learn more about the impact of employee engagement and how it can improve productivity. Knowing how to measure employee productivity is an essential factor, and enhancing employee engagement and productivity is crucial for long-term business success. 

With the tips provided here on creating a dynamic and productive work environment, you’ll be seeing a return on your investment in no time.

How does employee engagement affect workplace productivity?

Employee engagement and productivity are intrinsically linked. They’re essential to maintaining a successful workplace. A motivated and engaged team, with clear communication channels and a sense of loyalty, can lead to higher quality output as well as improved morale — all pieces of the puzzle that contribute towards better financial performance in the long run.

Multiple factors influence productivity, including the following. 

Employee engagement 

The impact of employee engagement is one of the biggest factors in workplace productivity. Studies suggest that when employees are engaged, they’re more productive, and their contributions can significantly impact the organization’s success. 

In fact, 93% of those who participated in Deloitte’s 2021 Global Human Capital Trends survey — which looked at employee engagement productivity metrics in great detail — believe that being engaged, and feeling that you belong, is a factor in overall organizational performance. 

According to a recent Gallup poll, highly engaged teams result in 21% more profitability. Conversely, when workers do not feel involved, it can lead to diminished output and even job dissatisfaction.


Employee engagement productivity rates skyrocket when people feel connected to their work and motivated by their goals. They tend to be more productive and efficient in completing tasks. This can result in higher-quality output and improved morale among staff members. This increased motivation often leads to greater collaboration between team members, further enhancing workplace productivity.


Better communication within teams or departments leads to more engaged employees. When people communicate effectively with each other, they understand how their individual roles fit into the larger picture of achieving organizational objectives. They also tend to be more willing to share ideas and collaborate on projects, which can improve problem-solving abilities and efficiency levels across teams or departments.

Loyalty and satisfaction

High levels of employee engagement can foster a sense of loyalty and job satisfaction, which has in turn, been linked to improved customer satisfaction and enhanced financial performance for organizations over time. 

A sense of unity amongst engaged team members also helps reduce negative behavior internally, since everyone is working towards the same goal rather than individual interests.

The importance of improving employee engagement & productivity

Employee engagement is a critical factor in workplace productivity and profitability. It can be challenging to quantify, yet its impacts on a business’s success are unmistakable. 

When employees are emotionally invested in their duties and dedicated to attaining organizational objectives, they tend to be more energetic, effective, and imaginative. This leads directly to higher profits for employers and improved employee job satisfaction.

How to increase employee engagement to boost productivity

Focusing on the impact of employee engagement can positively and directly improve employee productivity levels, leading to better employee performance and company profitability. How can you achieve this in your organization? Here are some tips:

Encourage self-development

Encouraging employees to further their skills and knowledge can bolster engagement and reduce stress, leading to higher job satisfaction and productivity. 

How to get there: This could include providing access to online courses or offering tuition reimbursement programs so employees can take classes related to their job role or pursue new skills outside of work hours. 

Offer mental health resources

Investing in mental health resources like therapy for employees or counseling services can help reduce stress levels and create a healthier workplace environment, leading directly to increased employee satisfaction and improved productivity.

“Providing mental health resources for employees is an opportunity to directly impact the well being of your employees. Employees who are able to easily access mental health services to manage work, family or relationship stress, depression, anxiety, substance use or receive support for any other concerns will likely feel more supported by the organization. Mental health services can reduce stress ultimately creating a healthier workplace environment.” - Talkspace therapist Jill Daino, LCSW-R, BC-TMH 

How to get there: Establish a partnership with a mental health provider to extend benefits to your employees. Online therapy can be a convenient, effective, and powerful advantage in comparison to traditional in-person therapy. 

Offer flexible working arrangements

Giving employees flexible working arrangements — such as remote working options or flexible scheduling — allows them more control over how they manage their time at work. This can lead directly to increased motivation levels and higher output rates. In addition, studies have demonstrated that those with more liberty in their job reported higher contentment than those who did not.

How to get there: Offer flex schedules — a 4 day workweek, remote opportunities when available, or hybrid remote/in-person options can go a long way in increasing engagement and productivity. 

Show appreciation and employee recognition

It’s important to show appreciation when your team members go above and beyond what’s expected of them. Acknowledging good employee performance is vital here because it makes people feel valued by their employer. Research shows this direction increases loyalty towards the company resulting in more significant commitment from each worker, thus improving overall efficiency within the organization.

How to get there: Whether through verbal praise or with tangible rewards like bonuses or gift cards, keep employee morale high while encouraging others around them to strive for excellence too. 

Offer growth and advancement opportunities

Offering prospects for progression and betterment can be a surefire way to energize and enthuse your staff. Career development initiatives will create a sense of purpose for employees, giving them something tangible to strive towards and boosting morale. This can lead to improved loyalty from staff members and increased commitment, resulting in greater efficiency throughout the organization. 

Additionally, providing these opportunities encourages ambition, creating an environment where innovation thrives — ultimately leading to enhanced productivity numbers across the board.

How to get there: Develop initiatives that will foster personal and professional growth. Hire from within, create performance measures people can strive toward, and schedule regular performance reviews and evaluations to assess growth and opportunity. 

Foster collaboration and teamwork

Studies show that collaborative atmospheres allow everyone to feel heard and appreciated, further strengthening the relationships between co-workers and enhancing team cohesion. These factors combined lead to improved output rates per department. In fact, the results demonstrated that collaboration could lead to a 64% increase in task longevity compared to those who attempted working solo. Additional benefits include increased engagement and business success rates as well as reduced fatigue. 

How to get there: Foster collaboration and teamwork among departments to build trust between colleagues, allowing ideas from different areas to coalesce. This will make problem-solving more straightforward and stimulate creativity.

Create a more engaged & productive workplace with Talkspace

Productivity and employee enthusiasm are bound together. Organizations that invest in creating a company culture with a focus on mental health and well-being can reap the rewards of improved employee engagement and increased productivity. Talkspace provides companies with an effective way to do just that. By ensuring employees have access to online therapy, organizations can ensure their staff feels supported and empowered to reach their full potential.

Talkspace Business offers a safe space to discuss any issues they may be facing without fear of judgment or stigma. By encouraging honest conversations about mental health, it’s easier to create an environment where people feel comfortable talking about their feelings and challenges at work. This helps build trust between colleagues, fostering team collaboration and creativity, which ultimately enhances employee engagement and productivity.

Offering Talkspace as part of an employer benefits package shows that you care about well-being beyond simply giving a paycheck every month. It demonstrates a genuine commitment to creating a positive working environment for everyone involved. This boosts morale and creates loyalty amongst your team members, who will be more likely to stay with you long-term when they know you value them as individuals rather than just another number on the payroll.


  1. Schwartz, Jeff, Brad Denny, and David Mallon. “Belonging.” Deloitte Insights, May 15, 2020.  
  2. Harter, Jim. “Employee Engagement on the Rise in the U.S.” Gallup, August 26, 2018.
  3. “Gartner Survey Finds Employee Engagement a Top Concern Affecting Customer Experience.” Gartner, June 14, 2018.  
  4. Clifton, Jon. “Americans Less Satisfied with Freedom.” Gallup, July 1, 2014.   
  5. Grant, Adam M., and Francesca Gino. “A Little Thanks Goes a Long Way: Explaining Why Gratitude Expressions Motivate Prosocial Behavior.” Journal of Personality and Social Psychology 98, no. 6 (2010): 946–55.
  6. Carr, Priyanka B., and Gregory M. Walton. “Cues of Working Together Fuel Intrinsic Motivation.” Journal of Experimental Social Psychology 53 (2014): 169–84.

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