In this report:

  1. Understanding Employee Engagement
  2. Benefits of Successful Employee Engagement 
  3. Key Drivers of Employee Engagement 
  4. Implications

‘There are only three measurements that tell you nearly everything you need to know about your organization’s overall performance: employee engagement, customer satisfaction, and cash flow.’

Jack Welch, Former CEO of GE

Understanding Employee Engagement

Employee engagement

The term employee engagement, in everyday usage, is often used synonymously with other terms that refer to employees. In addition, workplace trends are constantly changing and influenced by the times we live in. To fully understand the concept of employee engagement, it must be distinguished from other employee-related concepts.

Employee experience is often mistakenly used as a synonym for employee engagement, but it needs to be differentiated.

Satisfaction and happiness are touchpoints that contribute to the employee experience but do not directly lead to engagement.

In summary, engagement is the result of all employee touchpoints.

Need for change

According to a study by the Society for Human Resource Management, the average cost per new hire is $4,129. Employees who quit early therefore create large costs for the company. Bearing this in mind and knowing that 51% of U.S. employees are not engaged at work and 13% are even actively disengaged, there is a clear need for companies to bring about positive employee engagement.

New work

The pandemic is also having a major impact on employees. For example, the global engagement rate in 2020 decreased by two percentage points to 20%. Managers must address this trend of decline and its impact on workplace culture, employee retention and performance.


Research has shown, 58% of employees would like companies to measure employee engagement more frequently. The most commonly used tool to measure employee engagement is the Gallup Q12 meta-analysis which is based on twelve simple
and brief agree/disagree questions. To dig deeper into the subject of employee engagement, a more elaborated tool is needed that allows for more differentiated, solution-oriented results.

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Employee Engagement Report