By Sugandhh Kapoor, HR Manager and Maria Kaminska, Manager, Internal HR/Benefits, GoGlobal
Gallup’s 2024 State of the Global Workplace Report has unveiled a startling truth about workplace dynamics. Low employee engagement is draining the global economy by a staggering $8.9 trillion, according to the report. That means 9% of global GDP is being lost because of a disenchanted or disgruntled workforce.
This shocking figure underscores the immense value of employee engagement, which goes far beyond job satisfaction. Engaged employees are passionate, motivated and deeply connected to their organization’s success. According to research published by Harvard Business Review, engaged employees are more productive and deliver better customer experiences.
In this blog post, we explore the critical importance of engagement, especially for startups and mid-sized companies scaling globally. We also offer practical strategies for fostering a workforce that is invested, productive and committed to long-term success.
Why is employee engagement so important?
Employee engagement is critical because it directly influences innovation, retention and the bottom line. Engaged employees are more likely to go above and beyond in their roles, collaborate effectively with colleagues and contribute to a positive workplace culture.
For startups and mid-sized companies, especially those scaling globally, engaged employees can be a key differentiator in competitive markets. Embedding employee engagement strategies from the start is crucial.
Some effective practices include:
- Localized Engagement Approaches: Tailoring engagement strategies to regional preferences and cultural norms enhances relevance and impact.
- Supportive Leadership: Leaders must model inclusivity and transparency, fostering a culture of trust across borders.
- Virtual Collaboration Tools: Investing in digital platforms to connect global teams promotes continuous collaboration and engagement.
Research consistently shows that companies with higher engagement levels experience lower turnover, better customer satisfaction and a more resilient workforce. This focus on engagement creates an emotionally invested workforce that generates innovative ideas and solutions.
How has employee engagement evolved?
Over the years, employee engagement has shifted from a focus on traditional perks to a more holistic approach. There is a growing emphasis on well-being, mental health and personal growth.
Modern practices prioritize:
- Flexible Work Environments: Balancing autonomy and structure fosters trust and productivity, especially in remote and hybrid settings.
- Digital Enablement: Tools such as MS Teams, Slack and comprehensive HRIS platforms support connectivity, clear communication and efficient management of global teams.
- Wellness and Support: Providing access to mental health resources, flexible schedules and work-life balance initiatives supports employee well-being.
For startups and mid-sized companies expanding internationally, these modern practices are essential to attract and retain talent across diverse geographies.
Inclusive culture: the cornerstone of engagement
Creating an inclusive culture is fundamental to employee engagement, particularly in global settings. Inclusivity ensures that all employees feel valued, respected and empowered to contribute fully, regardless of their background or location.
Key strategies for fostering inclusivity include:
- Cultural Celebrations: Recognizing and celebrating diversity through events and learning sessions.
- Equitable Opportunities: Ensuring fair access to development and career advancement for all employees.
- Feedback and Action: Encouraging open dialogue and demonstrating responsiveness to employee suggestions to build trust and psychological safety.
- Global Collaboration: Leveraging technology to break down silos, facilitate cross-cultural teamwork and enhance the sense of belonging.
Inclusive environments foster higher job satisfaction, loyalty and overall performance, making them a critical priority for organizations scaling globally.
Leveraging technology for engagement
Incorporating technology into engagement strategies is increasingly important. For global and hybrid teams, technology bridges gaps and maintains alignment.
Key tools include:
- Communication Platforms: Tools like MS Teams and Slack promote open communication and team cohesion.
- HRIS Systems: Comprehensive platforms streamline employee management, from onboarding to feedback and recognition.
- Engagement Analytics: Technology can provide insights into employee sentiment and performance, enabling data-driven improvements.
Additional factors shaping employee engagement
Employee engagement thrives on multiple dimensions beyond basic job satisfaction, well-being and open communication. To maintain high levels of commitment, organizations can focus on the following:
- Recognition and Reward: Acknowledging employee contributions, whether through formal programs or informal appreciation, reinforces a sense of purpose and motivates sustained performance.
- Professional Development: Offering career advancement opportunities, such as training and mentoring, helps employees feel valued and invested in their growth.
- Leadership Style: Transparent, empathetic and supportive leadership fosters trust, engagement and a positive work environment.
- Organizational Culture: A culture that aligns with employees’ values and encourages inclusivity enhances loyalty and satisfaction.
- Team Dynamics: Strong relationships with colleagues and a sense of belonging contribute to higher engagement. Collaborative projects and team-building activities further strengthen these bonds.
Employee listening as a driver of engagement
Active employee listening and closing the feedback loops are critical for fostering engagement. When employees feel their voices are heard and acted upon, they experience a deeper sense of belonging. This can be a key driver of engagement. Effective listening enhances productivity, trust and collaboration. It empowers employees to contribute meaningfully.
Employees who feel heard are more likely to:
- Be engaged and effective at work.
- Share ideas and provide feedback with confidence.
- Experience a sense of belonging, leading to higher retention.
- Perform better and feel empowered to take initiative.
Employee engagement is a key pillar of thriving organizations. It not only fuels innovation and productivity but also builds a resilient and loyal workforce. For startups and mid-sized companies aiming to grow internationally, fostering an engaged workforce is pivotal to achieving sustainable success.
Engaged employees drive engaged organizations. When people thrive, businesses succeed.
Contact us today to learn more about navigating the complexities of international hiring and HR management.