The Connection Between Employee Engagement and Retention

Employee engagement and retention are two vital factors for business organisations, with studies indicating that engaged employees are 87% less likely to leave the company, 

The connection between employee engagement and retention is clear: engaged employees are more likely to stay with the organisation long-term. 

According to a study conducted by Gallup, a global analytics and advice firm, only 15% of employees in India are engaged at work, while 85% of employees are either not engaged or actively disengaged. This means that the majority of Indian employees are not emotionally invested in their work or their organisation. 

What is employee engagement? Why is employee engagement important for retention?

Employee engagement refers to the level of commitment, motivation, and enthusiasm that employees have for their work and their organisation. Engaged employees are passionate about their work, feel connected to their colleagues and the organisation's mission, and are willing to go above and beyond to achieve their goals.

Employee engagement may also be explained in terms of brain functioning and motivation. When employees are engaged, their brains experience increased levels of dopamine, a neurotransmitter associated with motivation and reward. This heightened dopamine activity enhances focus and attention, leading to better performance and outcomes at work.

Engaged employees also show increased activation in the prefrontal cortex, which is responsible for higher-order cognitive functions such as decision-making, problem-solving, and creativity. This leads to improved problem-solving abilities, innovation, and overall job satisfaction.

Furthermore, employee engagement positively impacts overall well-being by reducing stress and activating the brain's reward centres, releasing feel-good hormones such as oxytocin and endorphins. This creates a positive work environment, fosters a sense of belonging, and enhances the overall employee experience.

This is why engaged employees are more likely to go the extra mile, display proactive behaviour, and contribute positively to the company's success.

On the other hand, chronic disengagement and dissatisfaction at work can trigger the release of cortisol, a stress hormone. Elevated cortisol levels can impair cognitive function, decrease attention span, and hinder motivation, leading to further disengagement.

This is why disengaged employees may be present physically but not mentally. They may lack motivation and enthusiasm for their work, feel disconnected from their colleagues and the organisation’s mission, and may be more likely to miss work or leave the organisation altogether. 

How can you increase employee engagement and retention at your workplace?

While numerous factors contribute to employee engagement and retention, it is crucial to acknowledge the role of mental health in fostering a positive and engaging work environment.

Here are 5 employee engagement and retention activities: 

Creating Safe Spaces:

To promote mental well-being, it is essential to create safe spaces within the workplace. These spaces can be physical areas designated for relaxation, meditation, or even confidential discussions with mental health professionals. By providing employees with a sense of security and privacy, organisations demonstrate their commitment to mental health and foster trust among their workforce.

Encouraging Open Conversation:

Open conversations about mental health can break down barriers and reduce stigma. Employers should actively encourage a culture where employees feel comfortable discussing their mental health challenges and seeking support. Implementing mental health awareness campaigns, organising workshops, and training managers to handle such conversations empathetically are effective strategies for nurturing an open and supportive work environment.

Utilising Open-Ended Questions:

Engaging employees through open-ended questions helps to gauge their mental well-being and gain valuable insights. By asking questions that go beyond simple "yes" or "no" responses, employers can encourage employees to express their thoughts, concerns, and suggestions. This approach facilitates deeper conversations and demonstrates that their opinions are valued, leading to increased engagement and loyalty.

Introducing Surveys:

Periodic surveys focused on mental health and employee satisfaction provide valuable data for organisations. By collecting anonymous feedback from employees, organisations can identify areas of improvement, understand specific challenges, and tailor their mental health initiatives accordingly. Surveys also convey a message to employees that their voices are heard and contribute to shaping the work environment.

Conducting Regular Mood Check-Ins:

Regular mood check-ins offer a simple yet effective way to monitor and support employees' mental well-being. Employers can introduce quick surveys or tools that allow employees to rate their mood or emotional state periodically. This approach enables employers to identify trends, patterns, and potential areas of concern. Prompt action can be taken to address issues and provide necessary support, thereby fostering a mentally healthy workplace.

Prioritise work-life balance:

Employees are more likely to feel engaged when they have a healthy work-life balance. Offer flexible scheduling and remote work options, and encourage employees to take time off when needed. Prioritising work-life balance can help reduce stress and burnout, and practise self-care regularly. 

To learn more about how self-care can contribute to the employee’s emotional well-being, read How Can Self-Care Improve Employee Mental Health?

Investing in mental health initiatives not only demonstrates care for employees but also contributes to a positive work culture, improved engagement, and enhanced employee loyalty. Ultimately, by valuing and supporting mental health, organisations can create an environment where employees thrive both personally and professionally.

For personalised mental health services and clinically valid tools to create a healthier and more engaged workforce, explore Amaha’s Employee Well-being Programme.