How to increase employee engagement in the workplace

Successful organizations have cracked a fundamental truth: employee engagement directly correlates with business performance and innovation. But genuine engagement remains elusive for most companies, who mistake free lunches and office games for meaningful connection.

While most companies know engagement matters, they struggle to move beyond surface-level perks to create genuine, lasting motivation. The result? Talented employees who feel disconnected, uninspired, and ready to jump ship at the next opportunity.

However, creating true engagement doesn't have to be complicated.

From smart recognition strategies to growth opportunities that actually matter, we're breaking down the practical steps that transform clock-watchers into passionate team players.

Let's explore how to build an engagement strategy that delivers real results - not just empty promises.

Key takeaways

• Employee engagement drives productivity, innovation, and retention, with engaged employees contributing to 23% higher profitability and 18% greater productivity.
• Key engagement strategies include providing meaningful work, fostering open communication, and offering flexible benefits tailored to employees’ needs.
• Recognition and rewards programs boost morale, reinforcing positive behaviors and making employees feel valued for their contributions.
• Work-life balance and professional development opportunities enhance employee satisfaction, reducing burnout and increasing long-term commitment.
• Partnering with a third-party administrator (TPA) like Forma streamlines benefits management, improving engagement through personalized perks and seamless administration. <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">Schedule a demo</span>with us today

Why is employee engagement important?

Employee engagement is a critical factor in business success, influencing everything from productivity to retention and profitability. Engaged employees are more committed to their roles, motivated to perform at their best, and more likely to contribute positively to company culture. When employees feel valued and connected to their work, they are more innovative, collaborative, and invested in achieving business goals.

The impact of engagement is measurable. According to Gallup, companies with high employee engagement experience 23% higher profitability and 18% greater productivity than those with low engagement. 

Additionally, engaged employees contribute to a 21% lower turnover rate in high-turnover industries, reducing the significant costs associated with hiring and training replacements. Disengaged employees, on the other hand, can negatively affect morale, increase absenteeism, and contribute to performance issues that ultimately hurt business outcomes.

Organizations that prioritize engagement benefit from a more stable, high-performing workforce. By fostering a culture that supports growth, recognition, and meaningful work, businesses can create an environment where employees feel motivated to stay and contribute to long-term success. Investing in employee engagement isn’t just beneficial—it’s essential for sustaining a competitive edge.

How to increase employee engagement in the workplace

Increasing employee engagement requires a strategic approach that prioritizes meaningful benefits, professional growth opportunities, and a positive workplace culture. Here’s how you can improve employee engagement in your workplace.

1. Provide meaningful work

Employees want to feel that their work has a purpose. When they understand how their individual roles contribute to the company’s overall success, they become more engaged and motivated. 

Clearly communicating the bigger picture and showing employees how their efforts align with company goals fosters a sense of fulfillment and responsibility. Encouraging employees to take ownership of their tasks and see the direct impact of their contributions increases job satisfaction.

It is also important to align responsibilities with an employee’s strengths, interests, and long-term career goals. Assigning projects that challenge and engage them ensures they remain invested in their work. Providing opportunities for employees to work on initiatives that align with their passions and expertise fosters a sense of accomplishment and drives higher performance.

Regular check-ins help ensure that employees feel challenged and satisfied. Encouraging open conversations about their aspirations and how their roles support their professional growth strengthens their connection to the company. Being open to adjusting responsibilities or offering new learning opportunities shows employees they are valued, leading to increased engagement and retention.

2. Foster open communication

Open communication is a key driver of employee engagement. Open communication creates a workplace culture where employees feel heard, valued, and involved. When employees know their voices matter, they become more invested in their work and committed to company success. 

Creating multiple channels for feedback, such as team meetings, one-on-one check-ins, and anonymous surveys, encourages employees to share their thoughts, concerns, and ideas. By actively listening and acting on this input, organizations build trust and engagement.

Transparency is another key factor in fostering open communication. Keeping employees informed about company goals, challenges, and decisions helps them understand how their work contributes to the bigger picture. Regular updates through meetings, internal newsletters, or workplace communication platforms help bridge gaps and create alignment. Employees who feel informed are more likely to stay engaged and motivated.

Managers play a crucial role in maintaining open communication. Encouraging leaders to check in regularly with their teams, provide constructive feedback, and create an environment where employees feel comfortable speaking up enhances collaboration and engagement. When employees trust their managers to listen and support them, they are more likely to be productive, innovative, and committed to company success.

3. Offer flexible benefits

Providing employees with flexible benefits is one of the most effective ways to boost engagement. When employees feel that their employer supports their individual needs and lifestyles, they are more likely to stay motivated and committed to their work. 

Traditional, table stakes benefits no longer meet the expectations of today’s workforce. Instead, companies should offer customizable benefits that empower employees to choose what matters most to them.

Some key flexible benefits that drive engagement include:

• Lifestyle Spending Accounts: LSAs give employees the freedom to use funds on wellness, fitness, education, and other lifestyle perks.
• Health and wellness benefits: Wellness benefits offer mental health resources, gym memberships, and preventative care options to support overall well-being.
• Flexible working arrangements: Allow remote, hybrid, or flexible schedules to improve work-life balance and reduce burnout.
• Dependent care assistance: Provide childcare or eldercare support to help employees manage family responsibilities.
• Professional development stipends: Support career growth by covering costs for courses, certifications, and training programs.

4. Recognize and reward achievements

Recognizing and rewarding employee achievements is a powerful way to boost engagement and motivation. When employees feel appreciated for their hard work and contributions, they are more likely to feel valued and committed to their roles.

Implement a recognition program that celebrates individual and team successes. This could include public acknowledgments during team meetings, shout-outs in company newsletters, or even a dedicated recognition channel on your internal communication platform. Encourage managers and peers to nominate colleagues for their outstanding work, fostering a culture of appreciation and support.

Consider offering rewards for exceptional performance, such as bonuses, gift cards, or extra paid time off. These tangible incentives demonstrate that you value your employees' efforts and are willing to invest in their well-being and job satisfaction.

When designing your recognition and rewards program, ensure that it aligns with your company values and goals. Clearly communicate the criteria for recognition and make the process fair and transparent. Celebrate achievements consistently and timely to reinforce positive behaviors and keep engagement levels high.

5. Promote work-life balance

Supporting employees’ work-life balance is crucial for maintaining engagement and preventing burnout. Offering flexible working arrangements such as remote work options, flexible hours, or hybrid schedules helps employees manage their responsibilities more effectively. When employees feel they have control over their schedules, they are more productive and satisfied with their jobs.

Encouraging time off is another key aspect of work-life balance. Companies that offer generous paid time off policies, mental health days, and wellness leave create an environment where employees feel comfortable taking breaks. Employees who can step away from work and recharge return with renewed focus and energy, leading to higher engagement and better performance.

Leadership plays a significant role in setting the tone for work-life balance. Encouraging managers to lead by example — taking breaks, setting boundaries, and prioritizing well-being — sends a strong message that work-life balance is valued. When employees feel supported in maintaining a healthy balance, they are more likely to stay engaged, motivated, and committed to their organization.

6. Invest in professional development

Providing opportunities for continuous learning and skill development is a key factor in employee engagement. Employees want to feel that they are growing in their roles and have the potential for career advancement. 

Encouraging employees to take ownership of their learning by offering a dedicated learning budget empowers them to choose development opportunities that align with their career aspirations. This flexibility fosters a sense of purpose and motivation. Employees who see a clear path for growth within the company are more likely to stay engaged and committed.

Mentorship programs further enhance professional development. Pairing experienced employees with those looking to grow provides valuable guidance, support, and skill-sharing. When employees have access to mentors and clear development plans, they feel more connected to the company and its future. Investing in employee growth benefits both the individual and the organization, creating a more skilled and engaged workforce.

7. Partner with a third-party administrator

Managing employee benefits, payroll, and compliance internally can be time-consuming and complex. A third-party administrator (TPA) helps streamline these processes, ensuring that benefits programs are well-managed, compliant, and tailored to employee needs. By outsourcing benefits administration, companies can focus on strategic initiatives while providing employees with a seamless experience.

Working with a TPA offers several advantages, including:

• Reduced administrative burden: TPAs handle claims processing, compliance, and vendor management, freeing up HR teams for more strategic tasks.
• Improved compliance and risk management: TPAs stay up to date on regulatory requirements, ensuring that benefit programs adhere to tax laws and industry standards.
• Seamless employee experience: Employees gain access to a user-friendly platform for benefits selection, claims submission, and reimbursement tracking.
• Cost savings: TPAs help optimize benefits spending, reduce unnecessary expenses, and maximize return on investment.
• Access to expert guidance: TPAs provide insights on best practices, helping businesses design competitive and effective benefits programs.

By partnering with a third-party administrator, companies can simplify complex benefits processes, enhance employee satisfaction, and ensure compliance — ultimately leading to higher engagement and retention.

Does increased employee engagement help your business?

Yes, increased employee engagement directly benefits businesses. Engaged employees are more productive, motivated, and committed to their roles, leading to better performance and lower turnover. Companies with high engagement experience higher profitability, improved customer satisfaction, and reduced absenteeism. 

When employees feel valued and connected to their work, they are more likely to contribute innovative ideas and go the extra mile, strengthening the organization's overall success.

Managing employee engagement doesn’t have to be complicated. Forma’s flexible benefits platform helps businesses drive engagement by offering customizable perks, LSAs, wellness programs, and seamless benefits administration. 

As a trusted third-party administrator (TPA), Forma ensures compliance, simplifies claims processing, and delivers a user-friendly experience — freeing HR teams to focus on strategic growth. Companies like Honda, lululemon, and Tripadvisor rely on Forma to create engaging, high-impact benefits programs that attract and retain top talent.

<span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">Schedule a demo</span> today to see how Forma can help your business build a more engaged, satisfied, and high-performing workforce.