HOW EMPLOYEE ENGAGEMENT RAISES PRODUCTIVITY

Employee engagement and productivity are intrinsically linked. In 2025, in separate studies, both Nottingham Trent University and CIPD demonstrated a link between stronger employee engagement and higher productivity. For employers, boosting employee engagement can bring drastic improvements in overall productivity and, therefore, profitability. Conversely, poor engagement can cost employers. Low employee engagement costs UK employers around £300 billion every year in poor productivity.

In this guide, the team at Clover HR are going to delve further into this link between employee engagement and productivity as well as what employers and HR professionals can do to boost engagement in their workplaces. Stick with us to learn more or, to speak directly to one of our expert consultants, just call us now on 0330 175 6601.

Published: 1 November 2019 | Last modified: July 28, 2026

EMPLOYEE ENGAGEMENT OVERVIEW 

Employee engagement is a measure of how invested staff are in their work and the collective goals of the business. More engaged employees will be more driven to achieve success for themselves and the business. Because they are more committed, engaged employees are also usually more productive, making them a more valuable asset. 

Factors that influence engagement include general wellbeing, how valued an employer makes their staff feel, pay and benefits and working conditions. High engagement benefits both employers and employees. 

Employee Engagement Examples 

Employee engagement comes in many forms. Some key examples include: 

  • Regular one-to-one meetings – these provide staff with an opportunity to voice concerns, give feedback and discuss development 
  • Employee recognition schemes – regularly recognise achievements and hard work to boost morale 
  • Training and development – give your team a sense of progression and advancement with training and development opportunities, while helping them fulfill their roles more effectively 
  • Employee surveys – surveys give staff a chance to feed back on their role as well as the business as a whole, and are a useful tool for measuring engagement 
  • Clear communication – keep staff informed of updates, goals and company performance 
  • Team-building activities – regular team-building activities foster stronger working relationships and boost productivity 
  • Wellbeing initiatives – supporting your employees’ health demonstrates an investment in their wellbeing 
  • Flexible working arrangements – healthier work-life balances are shown to boost wellbeing, engagement and productivity 
  • Employee involvement – providing staff with opportunities to contribute and affect change makes them feel invested in the success of the business 

EMPLOYEE PRODUCTIVITY OVERVIEW

Employee productivity refers to how effectively staff complete their given roles. This means how much work they do within a set timeframe, as well as the quality of their work. Productive employees use their time, tools and resources effectively to produce more and, as a result, are more profitable for the business. 

A variety of factors can impact productivity, including engagement, workplace culture, leadership and access to the right tools and training. 

Employee Productivity Examples 

Increase employee productivity can show itself in a range of ways, such as: 

  • Meeting deadlines – productive staff will routinely hit key deadlines, and will rarely be late with work 
  • Producing high-quality work – strong productivity also results in a higher quality of work 
  • Efficient time management – employees that demonstrate greater productivity will manage their time more effectively 
  • Achieving performance targets – when set targets, productive employees will meet them 
  • Solving problems proactively – greater productivity can manifest as more independent, proactive behaviour 
  • Collaborating effectively – productive staff will work well in a team, achieving shared goals 
  • Using technology efficiently – employees can make better use of new technology, software and tools to drive productivity 
  • Reducing errors and waste – increases in productivity can lead to reduced errors and waste, improving profitability 
  • Continuously improving – a key part of productivity is continuous improvement, refining skills over time 

WHAT IS THE RELATIONSHIP BETWEEN EMPLOYEE ENGAGEMENT AND EMPLOYEE PRODUCTIVITY? 

Employee engagement and employee productivity are closely linked. More engaged employees are almost always more productive. So, for employers, the secret to boosting productivity is often to drive greater engagement. On the other hand, staff who are less engaged are often also less productive, which can cost businesses heavily. 

Engagement alone is not guaranteed to solve productivity problems, but it is a major factor. Greater engagement can also result in more proactive staff who work harder, stay in their roles longer and proactively support positive outcomes for the business. 

What Are The 12 Core Elements of Employee Engagement and Productivity? 

The global analytics and advisory company, Gallup, has produced a set of 12 core elements of employee engagement and productivity. These are divided into a pyramid of different workplace needs, with the first few questions representing basic needs moving through to individual contribution, teamwork and growth. 

These 12 core elements are: 

01 – I know what is expected of me at work 

Clear goals, responsibilities and performance expectations. 

02 – I have the materials and equipment I need to do my work right 

The correct tools, resources and support to perform effectively. 

03 – At work, I have the opportunity to do what I do best every day 

The opportunity to use their skills and strengths each day. 

04 – In the last seven days, I have received recognition or praise for doing good work 

Good performance is recognised. 

05 – My supervisor, or someone at work, seems to care about me as a person 

Staff are recognised, valued and supported as individuals. 

06 – There is someone at work who encourages my development 

Managers and colleagues support development. 

07 – At work, my opinions seem to count 

Staff feel listened to and valued. 

08 – The mission or purpose of my company makes me feel my job is important 

Employees can see how their work contributes to the overall success of the business. 

09 – My associates or fellow employees are committed to doing quality work 

There is a collective sense of pride in the quality of work. 

10 – I have a best friend at work 

Meaningful workplace relationships strengthen engagement and collaboration. 

11 – In the last six months, someone at work has talked to me about my progress 

Regular development and progression opportunities give staff a sense of progress. 

12 – This last year, I have had opportunities at work to learn and grow 

Employees are given opportunities to hone new and existing skills, contributing to career advancement. 

WHY ARE ENGAGED EMPLOYEES MORE PRODUCTIVE? 

Committed to Shared Goals 

Engaged employees are more likely to be invested in the success of the business and work towards shared goals. When employees can see how their efforts contribute to wider business growth, they usually take greater ownership of their work and collaborate more effectively. 

Raised Motivation 

There is a direct positive correlation between staff feeling motivated and valued and their productivity increasing. Regular feedback, development opportunities and recognition can encourage the maintenance of high standards and improved productivity. 

Increased Initiative 

Engaged employees are more likely to be proactive in their work, requiring less oversight. They will often seek answers independently and proactively solve problems, rather than relying on outside assistance or passing responsibility. 

Lower Absenteeism 

A positive and engaging workplace can reduce absenteeism. Employees are less likely to become burnt out, experience mental health issues or take unecessary sick days. This reduces disruption and improves productivity. 

More Adaptable 

Businesses are constantly evolving, and the more engaged your workforce is, the more likely they are to adopt quickly. Engaged employees tend to be more receptive to change as they can see the reasoning behind it and feel invested in the success of the business. 

Reduced Turnover 

Greater staff engagement can massively reduce turnover rates. When staff are invested in their work and the success of the business, they are usually more content and will stay with their employer for longer. This minimises recruitment costs and retains core skills. 

WORKPLACE CONSIDERATIONS TO INCREASE PRODUCTIVITY

Defined Job Objectives 

Employees should have a clear understanding of their job roles, responsibilities and performance expectations. They should also understand how their role contributes to the wider success of the business. Clearly defined objectives, responsibilities and expectations remove uncertainty, give clarity and provide direction. 

Readily Available Company Policies and Procedures 

Company policies and procedures should be clearly defined and easily available. This helps to promote consistency, supports legal compliance and helps employees make informed decisions about their employment. For employers, this also provides a clear point of reference should issues arise. 

Ensure Every Employee Has the Equipment to Carry Out Their Role Effectively 

Poor or lacking equipment such as old computers, uncomfortable chairs or outdated systems can slow productivity and lead to frustration. Providing staff with everything they need to carry out their roles effectively and comfortably enables greater productivity but also demonstrates to employees that you value their wellbeing. 

Appraisal Processes 

Regular appraisals give staff a chance to feedback and managers an opportunity to encourage development. They give a structured space to set objectives, measure performance and ensure expectations remain clear. Appraisals also facilitate open communication and continuous improvement. 

Personal Development Plans 

Personal development plans ensure staff have clear guidance on what they need to do to improve. Realistic development goals, supported by appropriate training, help employees measure progress while contributing to a more skilled, productive workforce. 

Give Praise and Recognition 

Recognising staff for their achievements reinforces positive behaviours and demonstrates that you see and value good work. This can range from simple praise and feedback to financial incentives for consistent achievement. Recognition can improve morale, motivation and performance. 

Focus on Employee Wellbeing and Culture 

Positive workplace culture can have a significant impact on engagement and productivity. An environment that fosters open communication, provides flexible working and gives access to support services is more likely to see improved employee engagement. 

HOW CLOVER HR CAN HELP RAISE PRODUCTIVITY 

At Clover HR, we help businesses across the UK navigate engagement and productivity challenges. Backed by years of experience and a team of more than 30 expert HR specialists, we provide tailored support to help businesses like yours foster stronger engagement, drive productivity and improve profitability. 

We take the confusion out of HR, helping you navigate a complex landscape of regulations, internal culture and people management. For everything from training to conflict resultion, we can help. To discuss your business’s needs, just reach out to our friendly team today by calling 0330 175 6601, emailing info@cloverhr.co.uk or filling out our contact form

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