10 employee engagement strategies that work [+ 9 real-life examples]

We're witnessing a sad trend in the post-pandemic labor market - employee engagement is down. People are generally more exhausted, anxious, and less likely to fully contribute to their teams. 

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At the same time, employee engagement is an essential metric for every organization, affecting sales, performance, and customer satisfaction. Gallup's State of the Global Workplace Report shows that companies with highly engaged staff experience 18% to 34% lower turnover and 21% higher profits. 

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It makes you want to seriously consider investing in a solid employee engagement strategy, doesn't it? But first… 

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What is an employee engagement strategy?

As a business metric, employee engagement reflects how much an average employee is involved with their responsibilities. It can also show how likely they are to change jobs or if they may be sabotaging their colleagues. 

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So, explain why their work matters, throw in a couple of benefits, and call it an engagement strategy, right? 

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Wrong!  

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When discussing employee engagement strategies, we need to stop thinking about team building exercises and mandatory staff training. Instead, it's about creating a work environment that naturally promotes engagement. 

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That's why, more often than not, it's much harder to implement an effective employee engagement strategy for the first time. Luckily, you've stumbled across this post, so you're in good hands. 

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First steps to building an employee engagement strategy

If you aren't sure your company has an employee engagement strategy, it most probably doesn't. But don't despair! All it means is that you're at an excellent place to start. 

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Before you jump into improving processes and motivating your staff, there are some preparations you need to take care of first. After all, it's a strategy we're talking about. So, as you'd typically do, you must plan before executing it. 

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Here are some questions you need to answer before your start building an employee engagement strategy:

• How do we measure engagement? Does it refer to active employee participation, turnover rates, or something entirely different? 
• What is the available budget for engagement-related activities? 
• What should be the level of team leaders' involvement? 
• Why are the tactics we decide to proceed with the best course of action?
• What are the goals we hope to achieve through introducing these initiatives? 
• Who should be responsible for implementing these changes? 

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Let's focus on that last one a little more. 

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Identify your roles: HR vs management 

Not every aspect of a solid employee engagement initiative can be done by the same department. That's why SMHR appeals that it's always best to assign roles and responsibilities from the start. 

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As a rule, HR maps out the roadmap toward employee engagement policies. It's up to them to: 

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• establish clear engagement goals;
• design workplace policies;
• allocate the budget towards compensation and benefits;
• determine drivers behind turnover, etc. 

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In turn, managers take over the process of building and nurturing the relationships inside the organization. Typically, some of their responsibilities in terms of employee engagement come down to: 

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• Communicating company values;
• Reflecting on day-to-day business operations;
• Leading through change;
• Creating a safe and welcoming space for each team member, etc. 

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But let's not sit on the theory for too long — see how it's applied in practice!

10 best employee engagement strategies and how companies use them  

We'll focus on real companies and the actual engagement strategies they've used in the past to retain employees and reduce turnover.  

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1. Build trust with transparency 

People working for high-trust companies report 74% less stress, 106% more energy, and 76% higher engagement. Transparency, by far, is an essential factor when it comes to earning employees' trust. 

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Some of the best practices many organizations already implement include: 

• Clear career paths and job descriptions
• Open-access remuneration salary brackets
• Regular company reports
• Two-way communication with the company leaders

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A case in point: Meta (Facebook)

The founder of Facebook is known for his high engagement with the business. Many of you probably know that Marc Zuckerberg runs regular weekly Q&A sessions for all Facebook employees. He presents product strategy, shares updates and concerns, and answers employees' most-voted questions. Interestingly, questions submitted here aren't anonymous as they'd be in most tech companies. Instead, Facebook really appeals to two-way transparency.  

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2. Practice non-violent, clear communication

Closely related to trust and transparency, our following essential employee engagement framework is about communication. 80% of employees believe that communication is crucial in the workplace. 

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The company's leaders of every level need to clearly communicate their expectations when it comes to performance, deadlines, feedback, etc. At the same time, this needs to be done in a friendly, professional way. As such, the modern workplace shouldn't tolerate any form of passive aggression or (in)direct verbal harassment. 

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It's a learning curve for sure, yet by investing in improved communication at the workplace, you're guaranteed to increase your employee engagement by a lot!  

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A case in point: Netflix

Netflix is well-known for their leading approach to internal communications. The organization actively promotes four core rules for communication: 

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“You listen well and seek to understand before responding. You are calm in stressful situations. Your writing and thinking are concise and coherent. You adapt your communication style so you can work effectively with different people, including those who don’t share your native language or cultural norms”. 

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3. Empower employees through autonomy and flexibility

Another popular driver of employee engagement is autonomy. Both middle and senior managers need to trust their staff with what they were hired to do. 

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An attractive workplace doesn't allow micro-management. Instead, it encourages employees to experiment and grow. Let's not forget about the growing popularity of remote-first positions and flexible schedules. Both approaches trust people with working whenever and wherever they like, as long as they get the job done. But there are many more ways for you to provide employee autonomy. 

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A case in point: Home Depot

Home Depot has been repeatedly named among Canada's top employers for young people. In many ways, they've earned it thanks to the high level of autonomy they entrust their staff. For example, the store recognizes each employee as the industry expert they need to be by giving them the right to give out up to $50 discounts on any item for whatever reason.

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4. Help your employees grow with training and development initiatives

87% of Millennials recognize the importance of learning and development in the workplace. That's partially why providing opportunities for gaining new skills is among the best employee engagement strategies. 

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Many companies address this zest for knowledge with an allocated annual training and development budget. At the same time, this budget rarely goes higher than $1,000, even for U.S. enterprises, while a single conference ticket may very likely cost over $3,000. 

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But it's not just about the money. Important company initiatives to facilitate learning include: 

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• Access to online libraries and courses; 
• Reimbursement for books and magazines; 
• Internal shadowing and mentoring programs;
• Partial or complete tuition coverage for related programs;
• The distinction between conference and learning budgets, etc. 

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A case in point: Amazon

Amazon invests in its employees' development in multiple ways. Amazon Technical Academy helps non-technical associates move into software engineering careers. The company also claims to cover 95% of the tuition for employees in fulfillment centers and provide month-long training prior to hiring. With the start of remote operations, Amazon also created a Virtual Contact Center that provides training dedicated to working from home. 

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Beth Galetti, Senior Vice President of HR at Amazon, explains it: 

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"We think it's important to invest in our employees and to help them gain new skills and create more professional options for themselves" 

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5. Take care of your staff's physical and mental well-being

Research by Microsoft found that 53% of employees would prioritize their health and well-being over work these days. Many companies tackle this through various initiatives:

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• Standing desks;
• Online therapy services;
• Private medical healthcare (often with dentistry);
• Activity sessions & competitions in the office and online, etc. 

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All these help a company demonstrate that they care about and support their talents' health and personal development. 

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A case in point: PepsiCo

While not all of their products may be health-oriented, PepsiCo takes employee well-being very seriously. Healthy Living is their global wellness program helping Pepsico associates and their families improve physical, financial, and emotional health. The program offers physical activities, nutrition plans, stress management workshops, community-driven initiatives designed to foster social connections and build relationships within the organization, and much more. 

6. Nurture work-life balance

We are way past the days when "We work hard, but we play harder" could be a strong incentive for someone to join your team. Instead, people are interested in "We respect your boundaries and love flexible schedules". 

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A case in point: HubSpot

HubSpot doesn't kid around when enforcing work-life balance on its employees. Starting with unlimited days off, all the way to the remote-first inclusive environment - they know how to build a people-centered culture:

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"Employees are shole people, with families, hobbies, and lives outside of work. We work remotely, keep non-traditional hours, and use unlimited vacation to create work-life "fit" for us and the people we love", - says their career page. 

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7. Celebrate daily victories with workplace recognition

Celebrating your team's small daily successes can boost morale and improve engagement. Some of the strategies that can be used here are:

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• Employee peer recognition programs - 82% of employees report feeling happier and more involved when they are recognized at work.
• Compliment-driven communication tools, such as HeyTaco for Slack or Shoutouts for CultureAmp - sometimes a simple "well-done!" goes a really long way!
• Dedicated team building sessions, such as Appreciation Shower by Gomada - with even a quick 15-minute game, your team can unwind and focus on achievements rather than challenges. Gomada is free to try! 

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A case in point: Disney

There are many ways to implement employee recognition as a regular practice at work. Disney is among the companies that absolutely excel at it! They start simply by ensuring a sincere "thank you" is delivered consistently. Still, they don't stop there: Disney employees can receive special-edition pins, custom-made trophies, or even VIP "Service Celebrations" for associates that stand out. 

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8. Don't underestimate the power of benefits 

Many companies offer competitive salaries, young teams of professionals, and challenging projects with many areas for growth. In fact, when salaries are competitive, it's often the additional benefits that make the difference for a promising candidate. 

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We've already covered many additional incentives that might drive new talents to your organization while improving employee retention at the same time. Choose the ones your associates are most likely to enjoy. 

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A case in point: Google

Come on, you didn't really expect us to omit the big G in this list, did you? Google is one of the most desirable places for many professionals to work not only because of its global recognition but also because of its impressive benefits package. Apart from the standard industry perks like health and wellness packages or a significant personal development budget, working for Google comes with onsite wellness centers, second medical opinion for employees' families, student loan reimbursement, one-on-one financial coaching, and more! 

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9. Think above profits: support a cause 

One of the best employee engagement strategies is to help them find meaning behind their day-to-day. So why not join a cause as an organization and allow your employees to express their beliefs and values? 

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Give an additional day off to protest or to volunteer, for example. Or aim higher and support one of the non-profits with your revenue. It will pay off, trust us! 

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A case in point: Hilton

Many companies donate a portion of their profits to NGOs. We decided to highlight Hilton because of the urgency of their latest initiative. As of March 2022, the chain committed to donating up to 1 million room nights across Europe to Ukrainian refugees in partnership with American Express. Their official statement reads: 

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"Our hotels have always been part of the fabric of our communities that we serve, and we take seriously our promise to positively impact the places where we live and work". 

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10. Build relationships and foster a sense community

Finally, don't forget what employee engagement strategies are all about — people at the heart of your organization. So make sure people feel like they belong there. And then no benefits package would be able to steal your talents. 

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After the pandemic outbreak, many professionals reported an enhanced sense of isolation and anxiety. Allow your organization to bring them together now that the world is almost back to normal. 

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Organize that glorious Christmas party of yours. Fly in the remote teams to your headquarters. Go on a yearly retreat for some well-deserved time off - and enjoy each other's company. 

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Related reading: The best team building ideas to do online.

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Not sure where to start on your next employee engagement strategy planning?

Check our robust list of the best platforms and solutions dedicated to employee engagement or the most effective employee engagement apps.