what factors influence employee engagement?

Want to boost retention and productivity at your company? You need to know what factors influence employee engagement. High engagement means better retention and fewer absences. But here’s the catch — many companies still struggle to keep employees engaged.

In this blog, we’ll explore what factors influence employee engagement and share practical tips for managers and HR professionals looking to make a real impact.

what is employee engagement?

Employee engagement refers to the level of commitment and enthusiasm workers feel toward their company. It differs from job satisfaction, which is about how happy someone is with their tasks or work conditions. An employee may feel content with their duties but still lack deep engagement. On the other hand, engaged employees often display hard work and dedication, even if they’re not entirely satisfied with their roles.

Why is employee engagement important? Engaged employees tend to be more optimistic, team-oriented and productive. They actively contribute to a positive work environment and support their company’s goals.

In contrast, disengaged workers often do the bare minimum, which has contributed to phenomena like “Quiet Quitting.” At a time when there’s a growing skills gap and a high demand for top talent, the lack of engagement is not sustainable for companies. Prioritizing employee needs is essential to maintaining a strong workforce.

8 factors that impact employee engagement

So, what factors influence employee engagement? Here are eight to consider.

1. trust in the company

Trust between employers and their employees is one of the key components of employee engagement. Simply put, if your employees don’t have trust in the company, it can be difficult — if not impossible — to build any type of meaningful engagement.

Let’s look at an example. Say your organization is requesting input regarding a newly implemented workplace process using feedback tools, such as surveys or interviews. The level of participation and engagement from your workers directly relates to how much they trust the company. If your workers feel the company doesn’t really care about their opinions, that it will be used against them or that it won’t take action based on their feedback, they are less likely to provide any useful input.

To build trust with your workers, focus on effective communication, transparency and fairness in the workplace.

2. alignment with personal values

Today’s workers, especially those in the younger generation, want to work for a company that has a purpose and mission aligned closely with their own personal values. Our Randstad Workmonitor 2024 report finds that over a third (38 percent) of workers say they wouldn’t accept a job if they did not agree with the views of the organization’s leadership. Over half (54 percent) consider their employer’s stance and actions on social and political issues important.

Attracting and engaging these workers is not just about pay and perks anymore. Offering meaningful work and creating a diverse and inclusive work environment are essential. Employees want to feel like they’re making a difference and being valued for who they truly are. When companies provide spaces where people can bring their authentic selves to work and see how their roles contribute to the bigger picture, engagement naturally increases.

3. strong leadership

The leadership of your company plays a critical role in shaping what factors influence employee engagement. Studies show that poor management is a leading cause of disengagement, with many workers leaving jobs because of ineffective leaders.

Keeping your employees engaged also means making sure you communicate with them on a regular basis. Especially during times of general insecurity or uncertainty, having regular information helps employees feel more at ease.

It's also critical for your company to develop a strategy for identifying which employees have the right skills to become managers and to provide managers with employee engagement ideas, tools and training.

4. pride in work

When employees take pride in their work, they’re much more likely to stay engaged. It all comes down to team goals and having a clear purpose. Imagine a retail worker who knows their efforts directly impact the store’s sales and customer satisfaction. When they see their hard work driving those results — and hear it from their manager through regular feedback — they’re more invested.

This sense of connection is especially crucial for deskless workers in industries like manufacturing or retail. They might not sit in on every company meeting, but when managers make time for check-ins and show how their work ties into the company’s success, it keeps them motivated and engaged.

5. safe work environment

A safe work environment isn’t just about avoiding accidents — it’s also about promoting engagement. Engaged employees are more aware and careful, which leads to fewer workplace incidents. Studies even show that disengaged employees experience 60 percent more accidents than their engaged peers. And let’s be clear — workplace safety issues lead to higher turnover, increased costs and lower productivity.

Creating a positive work environment means making sure employees have the tools, training and support they need to stay safe. But it doesn’t stop there. Managers play a huge role in keeping communication open and ensuring employees feel comfortable raising concerns. When workers know leadership has their back, they’re more likely to stay engaged.

6. enhanced employee experience

Don’t confuse employee engagement with the overall employee experience — they’re related, but they’re not the same. The employee experience is the full journey from when someone first applies for a job to their last day. Employee engagement, on the other hand, is about the emotions and commitment employees feel toward the company.

Think of it this way: the earlier you build engagement into the employee experience, the better. From onboarding to professional growth opportunities, giving employees a sense of purpose and a path forward is key. It’s all about showing workers that the company cares about their development and success right from the start.

7. clarity of job role

Imagine starting a new job where the description doesn’t match what you actually do — frustrating, to put it mildly. Lack of role clarity is one of the quickest ways to lose new hires. If employees don’t know what’s expected of them, it’s hard for them to feel engaged or motivated. And it’s not just new hires who face this issue. Long-term employees can also feel confused if processes or responsibilities shift without clear communication.

When employees know exactly what their roles involve and how they contribute to company goals, it boosts engagement. For HR professionals, this means regularly checking in with staff and updating job roles as things change. Regular feedback from managers can help clarify expectations and keep everyone on the same page.

8. investment in personal growth

Engagement is a two-way street. If you want your employees to be committed and invested in the company, the company must be committed and invested in its workers. Today’s engaged workers want to know their companies offer career development and training opportunities within the organization.

According to our Randstad Workmonitor 2024 report, training and development are no longer simply desirable perks but rather non-negotiable requirements for many workers. A significant portion of the global workforce, 72 percent of respondents, consider training and development important for their current jobs and potential future employment. Over a third (35 percent) say they would quit a job if it didn’t offer career progression.

You can use a career development program and employee training options to advance employee engagement within the company and increase workers’ commitment to the company. It’s important to create an employee training and development program that is transparent, unbiased and available to all workers. Without employee involvement, your efforts could have the reverse effect and hinder employee engagement.

how to measure employee engagement

To boost engagement, you’ve got to measure it. Surveys, exit interviews and direct feedback are all solid ways to figure out what factors influence employee engagement. Use this info to spot what’s working and what needs a fix. When you know the pulse of your workforce, you can build strategies that really align with company values and meet employee needs, driving long-term commitment and success.