What is employee engagement? Explaining its meaning, Advantage, and measures to improve it

In recent years, many companies have begun to place emphasis on "employee engagement" as the core of their human resource strategies. Opportunities to hear this term are on the rise, but few people may understand its exact meaning.

First, let's take a closer look at the meaning of employee engagement, how it differs from similar concepts such as "employee satisfaction" and "motivation," and the background to why it has been attracting attention in recent years.

Employee engagement is a term that describes the attachment and sense of belonging that employees have to an organization and their work. It is different from mere job satisfaction or loyalty to the company, and refers to a deeper emotional connection. Specifically, it includes the following elements:

1. I agree with the company's philosophy and goals
2. Have pride and passion for your work
3. Are eager to contribute to the success of the organization
4. Take the initiative in improving operations and solving problems

Simply put, high employee engagement is when employees feel happy working for the company and want to do their best to help the company grow.

The key is not just to be satisfied with your work, but to feel that you are deeply involved in the company's future and that you want to actively contribute.

Words that are often confused with employee engagement include "employee satisfaction" and "motivation." Although they may seem similar at first glance, they are concepts with different characteristics. Below, we will compare the main characteristics of these three concepts.

[Comparison of employee engagement, employee satisfaction, and motivation]

The table shows that highly engaged employees have a strong desire to contribute voluntarily, which is likely to directly translate into better individual performance and results. The cumulative effect of individual achievements is also a major contributor to the growth and development of the company as a whole.

On the other hand, employee satisfaction mainly refers to satisfaction with treatment and working environment. However, high satisfaction does not necessarily lead to high performance. Even if employees are satisfied with being able to work in a comfortable environment, this does not directly lead to improved productivity or the creation of innovative ideas.

Motivation is effective in improving short-term performance for specific goals and tasks. However, it tends to depend on external factors and may not be sustainable. Motivation may be increased by temporary rewards or praise, but this may not lead to long-term improvement in performance.

Therefore, for companies to aim for sustainable growth, it is important to focus not only on improving temporary satisfaction and motivation, but also on measures that increase employee engagement.

As the environment surrounding companies changes, employee engagement has become an important keyword in corporate human resource strategies. As interest in human capital management increases, employee engagement has come to be recognized as an important indicator for maximizing the value of human resources.

The declining productive labor force due to the declining birthrate and aging population, as well as the diversification of work styles, have also increased the importance of employee engagement. Companies are now faced with the challenge of maximizing the capabilities of their limited human resources and increasing a sense of belonging and enthusiasm for their work.

Additionally, numerous studies and case studies have shown that improved employee engagement is closely linked to improved customer satisfaction and corporate performance.

Furthermore, with the disclosure of human capital information becoming mandatory from fiscal year 2024, employee engagement is attracting attention from investors as an important indicator for measuring corporate value.

Increasing employee engagement brings various Advantage to companies. The following three are particularly important:

When employee engagement increases, each employee's motivation and sense of responsibility for their work increases. They will have a deeper understanding of their role and will take proactive action to achieve the organization's goals. As a result, the atmosphere of the entire organization will be energized, leading to improved work efficiency and productivity.

According to documents from the Ministry of Economy, Trade and Industry, a survey of 66 companies conducted in 2018 confirmed a correlation between employee engagement scores (ES) and operating profit margins and labor productivity. This result suggests that improving employee engagement may have a direct impact on corporate performance.

ー

Reference: Ministry of Economy, Trade and Industry "Relationship between employee engagement (morale and enthusiasm) and corporate performance"

https://www.meti.go.jp/shingikai/economy/mirai_jinzai/pdf/001_04_00.pdf

Highly engaged employees have a deeper understanding of their company's products and services, are able to accurately grasp customer needs and make appropriate suggestions, resulting in increased customer satisfaction.

Employees who have positive feelings toward the company and who provide knowledgeable and friendly service will be able to build good relationships with customers, which will ultimately lead to an increase in repeat customers and the acquisition of new customers through word of mouth.

It is said that increased employee engagement leads to increased sense of belonging to the company and job satisfaction, which in turn leads to lower turnover rates.
Highly engaged employees have the following traits:

• I feel my work is meaningful
• Easier to find career growth opportunities
• Better interpersonal relationships in the workplace
• Reduces stress
• Increased desire to continue working long term

A lower turnover rate will allow companies to reduce recruitment and training costs, which will be a great Advantage to companies.

To improve employee engagement, it is important to take a medium- to long-term approach to improving the organizational structure. The following are some effective measures to improve employee engagement:

By clearly showing the company's purpose and vision and sharing it with employees, it will be easier for them to feel the meaning of their work. Make an effort to gain empathy from employees by holding regular general meetings and internal branding.

Creating an open organization is the key to improving engagement. The company should take the lead in increasing opportunities for communication, such as by holding one-on-one meetings between managers and subordinates and networking events across departments.

Messages from management are also important in enhancing employees' sense of belonging.

To increase employee engagement, it is important to maintain a fair personnel system. A satisfactory evaluation and reward system has a significant impact on employees' trust and motivation to work.

First of all, it is important to clarify the evaluation criteria and have a transparent evaluation process. From goal setting to mid-term reviews and final evaluations, if superiors and subordinates regularly align their understanding, fairness and a sense of satisfaction will increase. Another option is to introduce a system that appropriately evaluates not only results but also work processes and efforts.

It is also essential to clarify career paths and disclose the criteria for promotion and advancement. If employees can visualize their future, it will motivate them to work.

Companies are being asked to take measures that allow employees to think independently about their own careers and provide opportunities for growth. Companies should establish mechanisms to support employee growth, such as by improving training programs and introducing internal recruitment systems.

At the same time, because the mental and physical health of employees has a significant impact on engagement, it is essential to conduct regular health checkups. Take steps to comprehensively support the health of your employees, such as improving mental health care and promoting work-life balance.

​Demonstrating that you value employees' private time through flexible work systems and encouraging them to take paid leave will increase their motivation to work. Promoting work-life balance is also essential from the perspective of "well-being," which refers to being mentally and physically healthy and in a good social state.

In addition, flexible working styles that allow employees to freely choose their working hours and work location to suit their lifestyles lead to increased employment opportunities for employees with various circumstances.

Systems that are tailored to employees' life stages, such as support for balancing work and childcare or elderly care, will have a significant impact on engagement.

The office environment is an element that is closely related to daily work. A comfortable and easy-to-work office environment will improve employee satisfaction and performance. The sense of fulfillment that comes from "working in a good office" will also have a positive effect on a sense of belonging and pride in the company.

Make sure to create an environment that meets the needs of your employees, such as an office design that you can proudly present both inside and outside the company, an office design that is easy to work in, lighting and air conditioning management, and the introduction of a comfortable relaxation space.

In this column, we have explained in detail the meaning and importance of employee engagement, as well as Advantage and methods of improving it. However, many people are probably wondering how to tackle it specifically.

ITOKI will help you create an environment where each employee can maximize their potential by supporting the introduction of new work styles, optimizing the office environment, and providing survey tools. If you are unsure of how to increase employee engagement, please feel free to contact ITOKI.

In order to improve employee engagement, it is essential to accurately understand the current situation and implement appropriate measures based on that understanding.

Therefore, at ITOKI, we have developed a proprietary cloud-based survey tool called "Performance Trail" to help each employee accurately understand their current situation.
This survey tool visualizes the performance of individuals and organizations, identifies issues and their causes, and proposes solutions.In addition, it has a score analysis and comparison function for various attributes, so it can grasp conditions that cannot be seen in health checkups or stress checks, and is easy to implement.

If you want to work on improving employee engagement, this tool is the perfect first step. For more information, please see below.