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5 min read

What is Leadership's Role in Employee Engagement?

By CHOYS Community
30 Oct 2024

Leadership is the heart of employee engagement and, one of the key drivers of organisational success. Employee engagement goes beyond happiness at work. It includes employees' emotional and intellectual commitment to their roles, teams, and the organisation as a whole. 

Leaders play a pivotal role in shaping how engaged employees feel. It starts by creating a culture where people feel valued, inspired, and motivated to contribute their best work. Leaders must adapt to these changing employee expectations and lead with empathy, communication, and trust to create a culture of engagement and retention. 

Why Does Employee Engagement Matter?

According to DDI, employee engagement refers to the emotional and intellectual commitment employees have towards their organisation. Engaged employees believe in the work they do and feel valued for their contributions. 

They go beyond merely fulfilling their job roles, putting in discretionary effort and showing enthusiasm for achieving superior results. However, engagement is more than a nice-to-have, it’s a critical element of business success. 

The absence of engagement can lead to lost productivity, decreased retention, and overall business failure. In fact, Gallup's 2023 State of the Global Workplace Report reveals that only 23% of employees worldwide are engaged, signalling a significant problem for businesses that want to stay competitive. 

Disengaged employees cost the global economy an estimated $7.8 trillion annually in lost productivity. Focusing on employee engagement through strong leadership is essential for organisations looking to maintain high levels of productivity and profitability. 

Suggested Read: How to Improve Employee Retention Rate?

The Role of Leadership in Driving Employee Engagement

Leaders are at the core of employee wellbeing and engagement. Gallup research shows that up to 70% of the variance in employee engagement can be attributed to leadership. This means that leaders, through their behaviour, decisions, and communication, hold the key to creating a motivated and committed workforce.

How Leaders Influence Engagement

  • Meaningful Work: Leaders help employees see the connection between their work and the broader company mission. When employees understand how their work contributes to the organisation's goals, they feel a greater sense of purpose and engagement.
  • Individual Value: Recognising employees' contributions is crucial. Leaders who show appreciation and encourage professional growth foster a deeper sense of individual value, which enhances engagement.
  • Positive Work Environment: Leaders set the tone for the workplace environment, ensuring that employees feel supported and empowered to do their best work.

Nowadays employees expect more from their leaders. They look for flexibility, opportunities for growth, a sense of belonging, and a supportive culture. Leaders who can meet these evolving expectations will see higher engagement and lower turnover rates.

The Direct Relationship Between Leadership and Retention

Employee engagement and retention are closely linked. When employees are engaged, they are far more likely to remain with the organisation. Conversely, disengaged employees may become demotivated, less productive, and more likely to leave. High turnover can be costly for companies, both in terms of lost talent and the time and resources required to recruit and train new employees.

Retention Conversations:

One of the most effective ways for leaders to keep engagement high and prevent turnover is through regular retention conversations. These discussions provide leaders with insights into what employees value in their roles and how they can be better supported. Retention conversations signal to employees that their input is valued and appreciated, which strengthens their connection to the company and increases the likelihood of them staying.

Leaders who prioritise retention and actively engage their team members in career development and purposeful work are 2.4 times more likely to keep high-potential employees and 9 times more likely to have engaged employees.

5 Key Leadership Skills to Drive Employee Engagement

To effectively engage employees, leaders need a core set of skills that enable them to communicate, inspire, and support their teams. Based on the 2023 Global Leadership Forecast, the following five skills are critical for driving engagement:

1. Communicating with Empathy

Empathy is one of the most powerful tools in a leader’s arsenal. Leaders who communicate with empathy build trust and foster open communication, making employees feel valued and understood. In a fast-changing work environment, keeping employees well-informed with clear and empathetic communication helps them stay engaged and motivated.

Tip for Leaders: Schedule regular check-ins to ensure employees have the information they need and feel supported. Listen actively to their concerns and respond thoughtfully.

2. Building Trust

Trust is the foundation of any successful leader-employee relationship. Leaders who are transparent, vulnerable, and authentic in their interactions build stronger connections with their teams. According to DDI, employees are 5.3 times more likely to trust leaders who show vulnerability and admit to their own challenges.

Tip for Leaders: Be open about your struggles and show appreciation for your team's efforts. Acknowledging mistakes or uncertainties can humanise leaders and strengthen trust.

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3. Coaching for Growth

Leaders who act as coaches provide valuable feedback that helps employees improve their skills and advance their careers. By investing in their employees’ development, leaders create a culture of continuous improvement and engagement. This is especially important in a job market where talented employees can easily seek new opportunities elsewhere.

Tip for Leaders: Tip for Leaders: Offer regular feedback and help employees set personal development goals. Create learning and growth opportunities within the organisation, as outlined in how to improve employee engagement.

4. Recognising and Rewarding Contributions

Recognition is a powerful motivator. Employees who feel recognised for their efforts are more engaged and likely to go above and beyond for their company. However, recognition should not be reserved for annual events, it should be a regular practice.

Tip for Leaders: Make recognition a part of your daily interactions with employees. Publicly acknowledge achievements and link recognition to organisational values to reinforce desired behaviours.

5. Supporting Employee wellbeing

Leaders play a crucial role in supporting their team’s wellbeing. Employees who feel that their wellbeing is prioritised are 3 times more likely to be engaged. Leaders must ensure that employees have the support they need to manage stress, work-life balance, and mental health.

Tip for Leaders: Foster a work environment where wellbeing is a priority by promoting flexible work schedules, encouraging breaks, and providing resources for mental health support.

Measuring the Impact of Leadership Development on Engagement

Leadership development programs are an investment that pays dividends in employee engagement. Forbes notes that leaders who receive training in critical skills, such as communication, empathy, and trust-building, report higher engagement levels in their roles. In fact, 88% of leaders who underwent leadership training reported feeling more engaged in their leadership roles, and 85% reported that their team members were more engaged after training.

The benefits extend to productivity as well,82% of employees working under trained leaders reported increased productivity. For more insights into comprehensive strategies, consider exploring the 5 C’s of employee engagement.

Key Takeaway:
Developing leaders with these essential skills can transform employee engagement across the organisation, leading to stronger performance, reduced turnover, and a more resilient workforce.

How CHOYS Can Make Employee Wellbeing Easy for Leaders?

CHOYS simplifies the process of managing employee wellbeing by offering a comprehensive platform that includes rewards and recognition, insurance benefits, Employee Assistance Programs (EAP), and access to a virtual GP. With CHOYS, leaders can effortlessly support their teams' mental, physical, and financial health, all from one convenient app. By streamlining well-being initiatives, CHOYS allows leaders to focus on fostering engagement and productivity, knowing that their employees are well cared for.

Curious to Learn More? Book a Demo Now

FAQs

Q. Why is leadership important for employee engagement?
Leadership is crucial because leaders shape the work environment, communicate the company vision, and support their employees' development. Leaders influence how motivated and engaged employees feel about their work.

Q. How can leaders increase employee engagement?
Leaders can increase engagement by communicating openly, recognising employee contributions, providing opportunities for growth, and supporting work-life balance and wellbeing.

Q. What are retention conversations?
Retention conversations are discussions between leaders and employees about what they value in their roles and what can be improved to keep them engaged. These conversations help leaders understand employee needs and prevent turnover.

Q. Why is recognition important for employee engagement?
Recognition is essential because it shows employees that their contributions are valued. Regular recognition boosts morale and motivates employees to perform at their best.

How does employee wellbeing affect engagement?
Employee wellbeing is closely tied to engagement. When leaders prioritise their employees' wellbeing, they create a supportive environment that prevents burnout and keeps employees motivated and productive.

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