The Single Most Important Factor in Improving Employee Engagement in Today’s Workplace

A few years ago, a large organization we were with achieved what many companies still struggle with today: exceptionally high employee engagement. While this achievement would satisfy most executives, one senior leader posed a crucial question that remains relevant in our post-pandemic era: “If high engagement is good, wouldn’t an even higher level be better?”

This forward-thinking perspective proved prophetic. In today’s hybrid and remote work environment, where maintaining employee connection and commitment is more challenging than ever, this organization’s approach offers valuable lessons. Their CEO believed that merely setting a goal to maintain high engagement would lead to decline—continuous improvement was essential for sustained success.

The Challenge of Improving Employee Engagement

In 2024, organizations face unprecedented challenges in maintaining employee engagement. The rise of remote work, quiet quitting, and the ongoing effects of the Great Resignation have made engagement more crucial—and more difficult—than ever. While many companies have seen engagement levels plateau or decline in this new environment, this organization has consistently improved its engagement scores year over year.

Understanding Engagement Levels

To contextualize this organization’s success, Zenger Folkman compared their employee survey responses to global benchmarks, categorizing employees into four groups:

• High Engagement (Most positive response to each item)
• Moderate Engagement (Positive response to each item)
• Low Engagement (Mixed positive and negative/neutral responses)
• Uncommitted/Unsatisfied (Negative/neutral responses to all items)

The results are striking: this organization maintains more than twice the number of highly engaged employees compared to global norms, with 8.7% more moderately engaged employees and significantly fewer disengaged workers. This achievement is particularly noteworthy given the current challenges of maintaining engagement in hybrid and remote work environments.

The Manager Effect in a Digital Age: Improving Employee Engagement

Perhaps the most crucial finding, especially relevant in today’s distributed workforce, is the direct correlation between manager effectiveness and employee engagement. While many organizations have shifted to providing engagement feedback only to larger groups—partly due to the complexities of remote work—this approach overlooks a critical insight: the immediate supervisor’s impact on engagement remains paramount, regardless of whether teams work in-person or virtually.

The data reveals that employees working under highly effective managers maintain high engagement levels, even in remote settings. Conversely, those reporting to less effective managers show significantly lower engagement, with scores dropping to the 20th percentile when manager effectiveness is at the 10th percentile. This relationship holds true regardless of work arrangement, highlighting the critical role of effective leadership in the digital age.

Keys to Success in Improving Employee Engagement in  Today’s Environment

This organization’s approach to improving engagement remains effective in the modern workplace, with some crucial adaptations:

1. Universal Feedback with Digital Enhancement: Despite the challenges of distributed teams, the organization provides feedback to every manager with at least five direct reports. They’ve adapted their feedback systems to accommodate remote work while maintaining confidentiality, achieving an impressive 90%+ response rate.
2. Action-Oriented Leadership Development: The organization requires every leader to:
   • Create a detailed action plan for improving team engagement
   • Share this plan with their supervisor
   • Implement strategies specifically designed for hybrid and remote work environments
   • Regularly measure and adjust their approach based on results
3. Continuous Measurement and Accountability: Regular surveys and comparative analysis help leaders track progress and adjust their strategies, ensuring effectiveness in both virtual and in-person settings.

Modern Implications

The evidence connecting high employee engagement to improved customer satisfaction and profitability is even more compelling in today’s competitive landscape. As organizations navigate the challenges of hybrid work, quiet quitting, and changing employee expectations, this case study demonstrates that:

1. Effective leadership remains the cornerstone of engagement, regardless of work setting
2. Continuous improvement in engagement is possible even in challenging circumstances
3. Regular feedback and accountability are essential for maintaining momentum
4. Adapting engagement strategies for remote and hybrid work can yield significant results

Conclusion

In an era where employee engagement faces unprecedented challenges, this organization’s success story offers a blueprint for modern leaders. Their experience proves that with the right approach, companies can not only maintain but continuously improve engagement levels, even in a rapidly evolving work environment. The key lies in understanding that while the workplace has changed dramatically, the fundamental role of effective leadership in driving engagement remains constant.

The lessons learned from this organization are perhaps more relevant now than ever before, as companies worldwide strive to build and maintain engaged workforces in an increasingly digital and distributed work environment. The message is clear: investing in leadership effectiveness and maintaining consistent engagement initiatives pays dividends, regardless of how or where work gets done.

• Joe Folkman