Employee Engagement Best Practices

Employee engagement plays a critical role in organizational success. Highly engaged employees are more productive, more committed to their work, and more likely to remain with their employer.

This guide explains why employee engagement matters, the factors that influence engagement, and how Trakstar Perform can help organizations measure and improve engagement over time.

Additional Resources

• Surveying & Supporting Employees
• A Guide to Employee Engagement

Are you looking for an in-depth how-to guide on Perform's engagement feature?  Click here!

Why Employee Engagement Matters

Research consistently shows a strong relationship between employee engagement and organizational performance.

According to a study by the Partnership for Workplace Mental Health:

• Only one in five employees is highly engaged at work.
• Higher employee engagement leads to increased productivity and employee loyalty.
• Organizations with highly engaged employees outperform organizations with lower engagement across many business outcomes.

Employee engagement is often associated with either employee happiness or employee productivity. In reality, both are essential components of engagement.

Employees who enjoy their work are more likely to produce high-quality results consistently. Likewise, employees who see the impact of their work are more likely to feel fulfilled and motivated.

Employee engagement exists where employee happiness and productivity intersect.

The Three Drivers of Productivity

Productivity is influenced by three primary factors:

• Ability
• Opportunity
• Motivation

Understanding each of these drivers can help organizations create an environment that encourages long-term engagement.

Ability

Ability combines an employee's natural talents with the knowledge and skills gained through education and work experience.

Employees are generally more engaged when they can perform work that aligns with their strengths and capabilities.

Opportunity

Opportunity refers to placing employees in positions where they can effectively apply their skills and knowledge.

Employees are most productive when their responsibilities and goals match their abilities.

Motivation

Motivation is the drive to consistently perform at a high level.

There are two primary forms of motivation:

• Extrinsic motivation
• Intrinsic motivation

Extrinsic vs. Intrinsic Motivation

Understanding the difference between extrinsic and intrinsic motivation can help organizations create more sustainable engagement strategies.

Extrinsic Motivation

Extrinsic motivation comes from external rewards or consequences, such as:

• Compensation
• Bonuses
• Recognition from managers
• Avoiding negative consequences or disciplinary action

While these incentives can influence behavior, they typically have a limited effect on long-term engagement.

Organizations that rely primarily on extrinsic motivation may experience challenges such as:

• Short-term increases in productivity rather than sustained performance.
• Employees focusing on personal rewards instead of organizational goals.
• Attracting candidates motivated primarily by incentives rather than meaningful work.
• Workplace tension caused by comparisons of rewards, promotions, or recognition.

Intrinsic Motivation

Intrinsic motivation comes from finding personal satisfaction in the work itself.

Employees who are intrinsically motivated enjoy the day-to-day experience of their work rather than being motivated solely by external rewards.

Intrinsic motivation is built on three key elements.

Mastery

The satisfaction that comes from developing expertise, improving skills, and consistently becoming better at one's work.

Autonomy

The freedom and trust to apply knowledge and skills independently while making meaningful decisions.

Purpose

Understanding how individual work contributes to organizational success and positively impacts customers, colleagues, or the broader mission.

While competitive compensation helps attract talented employees, intrinsic motivation is what helps keep employees engaged, productive, and committed over time.

Why Engagement Is More Important Than Ever

An engaged workforce benefits both employees and the organization.

Organizations that foster engagement are better positioned to:

• Maximize employee strengths.
• Improve productivity.
• Increase employee retention.
• Develop future leaders.
• Reduce turnover costs.

Replacing employees can require significant time and financial investment. Beyond hiring costs, organizations also spend considerable resources onboarding and training new employees.

Engagement is especially important as workforce expectations continue to evolve.

Many employees—particularly younger professionals—prioritize meaningful work, professional growth, organizational purpose, and opportunities for development alongside compensation.

Organizations that invest in employee engagement are better equipped to retain top talent and prepare future leaders from within.

How to Promote Employee Engagement

Building engagement requires intentional effort across the organization.

While every employee is motivated differently, organizations can better understand engagement by collecting meaningful feedback and creating opportunities for open communication.

Surveys and Polls

The most effective way to understand employee engagement is to ask employees directly.

Anonymous surveys and polls encourage employees to share honest feedback about their workplace experiences.

Organization-wide surveys can help leaders:

• Measure engagement across the workforce.
• Identify organizational trends.
• Understand employee concerns.
• Evaluate morale.
• Prioritize improvement efforts.

Anonymous feedback often provides a more complete picture because employees may feel more comfortable sharing candid responses.

Employee and Manager Check-Ins

While surveys provide organization-wide insights, regular one-on-one conversations help managers understand each employee's individual experience.

Effective check-ins should focus on more than current projects.

Managers should encourage discussions about:

• What's going well.
• Current challenges.
• Employee satisfaction.
• Opportunities for improvement.
• Professional growth and development.

Consistent engagement-focused conversations help create a culture of trust, transparency, and continuous improvement.

Measuring Employee Engagement in Trakstar Perform

In addition to performance management, Trakstar Perform includes an employee engagement module that helps organizations measure both employee happiness and productivity.

Available engagement features include:

Company Pulse Survey

Measure engagement across the organization using predefined survey questions.

Opinion Poll

Collect quick feedback from employees on engagement-related topics.

Manager Check-In

Provide employees with a brief questionnaire before manager meetings to support more productive engagement conversations.

Custom Survey

Create custom surveys tailored to your organization's specific engagement goals or information-gathering needs.