Employee Experience (EX) 


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How Employee Engagement Affects Performance

Here’s something that every manager needs to know: You can’t improve your organisation’s performance without strong employee engagement.

Gallup first noted this when their research showed that managers who focused on employee engagement “increased productivity and success by creating an environment that energises and motivates employees and teams, helping them reach the highest levels of performance.”


They also had the numbers to back that up. They found that Employee groups with high engagement levels experience:


  • 22% higher profitability

  • 21% higher productivity

  • 65% lower staff turnover

  • 10% higher customer ratings

The key to employee engagement: Helping people develop their strengths

How do you better engage your employees? Gallup’s research had an answer for that too, you focus on developing their strengths.

They found that when an organisation focused on strengths-based employee development, they also developed a much more more engaging and productive workplace. The results here were pretty impressive as well:

  • 10% to 19% increased sales

  • 14% to 29% increased profit

  • 9% to 15% increase in employee engagement


This is especially true for Millennials — who are now the largest single demographic in the workforce — because besides wanting their work to have meaning and purpose, they also want to be able to learn and develop themselves, using their talents and strengths to do what they do best every day.

When your developmental goals for employees focus on strength-based development, nearly two-thirds (67%) of workers are engaged. That’s pretty stunning of course, but the flip-side is equally stunning because organisation’s that don’t focus on developing strengths see the number of engaged employees drop to 2%.

Those kinds of numbers should get the attention of business leaders everywhere.

What effective managers bring to the table

Effective management is the “secret sauce” in your engagement formula, because employees will run through walls and go that extra mile to do whatever they can when a manager they truly respect asks them to do it.

That’s because managers put them in in position to be highly successful in their work, and Gallup has identified the 12 key elements that great managers bring to the table. Some of these include:

  • They make sure that employees clearly know what is expected of them.

  • They give them the materials and equipment to do the job right.

  • They build on employee strengths by giving them the opportunity to do what they do well every day.

  • They let them know when they do a good job, recognising them for their work on a regular basis.

  • They encourage them to continue to grow and develop their skills.

  • They play to the strengths of their employees and put them in a position to succeed, not fail.

  • They infuse their workers with a sense of mission and purpose that lets them know their work is truly important.


With employee engagement levels at only about 30% in the U.S. and 15% worldwide (according to Gallup), and what we know about the positive link between engagement and employee performance, doesn’t it make sense to help your managers get to know their employees better and really work on developing their strengths and your organisation’s overall performance?

HappyOrNot can help you to do this.


We have the tools and experience to help you grow a high-performing and engaged workforce.