Engagement & Motivation

If you work in HR, you know that fostering “engagement” goes much deeper than just throwing a fun social activity, especially if these activities are mandated. “Forced fun is not exactly a driver of employee engagement. In other words, you can’t expect mandated pizza parties and team-building activities to reduce employee turnover. Although these initiatives can provide a temporary morale boost and help with team bonding, true employee engagement goes much deeper than these surface-level initiatives. 

That said, the benefits of employee engagement are well documented. A growing body of research shows that more engaged employees are happier, more productive, and stay longer within their organizations. All these factors have a tangible impact on the organization's performance.

So, if social events don’t drive higher employee engagement, what does? This article presents recent workplace research and discusses the most critical drivers of employee engagement. We’ll also offer some concrete examples of initiatives you can easily implement today to encourage these key drivers in your workplace. If you’re getting started with an employee engagement plan, recognizing these key drivers is a key step in systematically tackling the engagement issues in your workplace.

8 Key Drivers of Employee Engagement (and How to Promote them Today)

1. Meaningful Work

Meaning at work might seem like a fluffy, vague concept. But it’s one of the most important drivers of employee engagement. In this Psychology Today article titled How to Foster Meaningful Work, the author discusses the definition of meaningful work, “It’s the subjective experience you have that your work matters, facilitates personal growth, and is significant and worthwhile.”

Of course, not every little task an employee performs has to be meaningful. It’s more about the bigger picture impact of their work, how employees feel and relate to their responsibilities, and how those duties align with their goals and personal growth plans.

Many leaders may feel overwhelmed and wonder how to encourage such an abstract idea. The author offers some concrete suggestions, like 

• Continuously communicate how your employees' work impacts the bigger picture—your organization, clients, and even the larger social impact of the work. 
• Nurture potential by putting employees on projects that challenge them and match their professional goals.
• Give employees flexibility and autonomy in how they perform and complete their work.

As you can see, fostering meaningful work doesn’t have to involve rolling out shiny new initiatives that require tons of resources and time to set up and run. It may be as simple as leaders communicating the impact of their employees' work and aligning employee tasks and duties with their interests and passions. 

2. Leadership Quality

It's a well-known fact that employees perform better under competent leaders. Yet, the reality is that many companies are wrestling with subpar leadership, leading to significant issues in employee engagement. 

Gallup recently reported that only 23% of U.S. employees strongly agree that they trust their organization's leadership. Calm's yearly Voice of the Workplace report showed that about half (49%) of employees claim their manager genuinely cares about their well-being. Those are some discouraging statistics. 

Fortunately, effective leadership can be taught and fostered. Business leaders, HR professionals, and managers have the power to implement changes and improve the leadership in their organizations. For example, leadership training, mentorship programs, and anonymous surveys to gauge leadership quality can be implemented to ensure your company's leadership meets standards that help employees thrive.

3. Opportunities for Development and Growth

Work is a core pillar of modern life. What else could explain the most common question people ask when they first meet, "What do you do for work?" Work goes beyond something we do for a paycheck; it's a core driver of our identity. 

As a result, many people see work as a vehicle for growing, learning, and evolving as professionals and people. Of course, some people are in a phase in their careers where they are happy just going to work, executing their job well, and nothing more. Yet, many people desire to be stimulated and challenged at work.

A recent BetterWorks State of Performance Enablement report revealed this truth and found that 86% of employees say skill development and coaching are important to them, but only 54% are receiving it. At the same time, a report by Canadian health tech company Dialogue found that 63% of HR professionals agree that employee career development is a significant challenge for their business. Simply put, Employees want to be challenged and developed, but practically speaking, businesses and their HR teams are struggling to meet this demand; there aren't unlimited promotions to go around to everyone who wants it.

In the book Promotions Are So Yesterday, workplace expert and author Julie Winkle Giulioni addresses the common issue of "how to offer growth when promotions are in short supply."

A few of the suggestions she offers:

• Re-define what "growth" is: Promotions or title changes should not be the only way we define growth or career development. Moving beyond this traditional definition will open up countless opportunities to offer "growth" to your employees.
• Build employees' confidence: Help identify areas of strength and weakness and nudge employees out of their comfort zones.
• Help employees build connections: Support employees in fostering internal connections. For example, can you help employees with the following: Attending an event, meeting key leaders, or leading a meeting?

4. Recognition and Rewards

Imagine going to work and never getting positive remarks or “good job” from your leaders or peers. It wouldn’t be too long before you felt resentful and burnt out. Paychecks are important—as we will see later in this article, but they cannot replace the positive feelings that genuine recognition can evoke.

A wealth of research supports the importance of recognition in the workplace. For example, a recent Gallup research report found that employees who receive great recognition are 20X as likely to be engaged as employees who receive poor recognition. Recognition is even critical to more physically demanding work environments like manufacturing and production. A Manufacturing Institute report showed that workers who felt valued were more than 4X as likely to report high levels of work engagement and less likely to feel stressed out on a typical workday. 

a recent Gallup research report found that employees who receive great recognition are 20X as likely to be engaged as employees who receive poor recognition.

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That said, there are many types of employee recognition in the workplace—from casual “good jobs” to more formal years of service programs. Organizations can grow appreciation in the workplace in various ways.

Some examples of employee recognition programs that leaders can be implemented in a workplace include:

• Peer-to-peer recognition: Peer-to-peer recognition programs can be facilitated through digital platforms like Qarrot, where employees can send kudos, thank-you notes, or points redeemed for rewards.
• Anniversary and milestone awards: Celebrating work anniversaries and significant milestones is a great way to show appreciation for long-term commitment and loyalty. These awards can be given for milestones such as 1, 5, 10, or 20 years of service.
• Social media shoutouts: Highlighting employee achievements on platforms like LinkedIn, Facebook, or the company’s blog makes the employee feel valued and showcases the company’s positive culture to a wider audience.

There are countless ways businesses can start fostering a culture of recognition. For organizations new to recognition programs, the best approach is to start with a small initiative and work your way up from there. 

5. Work-Life Balance

The pandemic forced people to reconsider work-life balance; people started reevaluating their priorities and values around work. As a result, hustle and burnout culture came under scrutiny, and work freedom and flexibility became one of the most important factors driving employee happiness and engagement. 

A Randstad Workmonitor report found that work-life balance now ranks as highly as pay on talent's priorities (93%)—far ahead of any other category. Another report by Canadian healthtech company Dialogue found that work-life balance is a top contributor to employees' mental health after financial situation and job satisfaction.

Work-life balance has become a core consideration for candidates and a powerful driver of employee engagement. Thankfully, employers can help protect employees' work-life balance in many ways, both at the higher policy and program level and at the managerial level. 

For example, at the organizational level, companies can create initiatives for flexible work hours and remote work options. At the managerial level, clear boundaries can be established around communication expectations outside work hours. Showing employees that the organization and leadership care about protecting their work-life balance can improve employee engagement and lead to a more productive and happier workforce.

6. Autonomy and Empowerment

Autonomy and empowerment are vital drivers of employee engagement because they tap into the basic human need for control. When employees are free to make decisions and feel empowered to take ownership of their work, it fuels their intrinsic motivation—meaning they're driven by the internal satisfaction of the task rather than external rewards. 

According to self-determination theory (SDT), a well-established psychological model, humans are naturally motivated when they feel competent, connected, and autonomous. In other words, people are often motivated by external factors such as money, awards, and prestige (i.e., extrinsic motivation); however, self-determination theory focuses primarily on internal sources of motivation, such as a need to gain knowledge or independence (i.e., intrinsic motivation).

This sense of autonomy doesn't just make people feel good; it actually boosts their engagement, creativity, and overall job satisfaction. Empowered employees are more likely to be passionate about their work, leading to better performance and a more vibrant workplace.

Organizations can help drive employee engagement by fostering greater employee autonomy and empowerment. This can be accomplished at higher levels through official policies and programs, but it can also be achieved in smaller, everyday ways at the team level. 

For example, organizations can offer flexible work arrangements, allowing employees to work from home or even abroad for a given period of the year. On a team level, managers can give some flexibility over employees' schedules or give employees some input into their goals, tasks, and responsibilities. 

7. Communication and Transparency

Dishonesty, distrust, and fear are the opposites of healthy work cultures. Doing your best work is impossible when you are tense and on edge. In other words, a sense of safety and security in the workplace is vital to employee happiness and productivity. Organizations and leaders must provide employees with a sense of trust. 

When leaders are open and transparent about decisions, goals, and challenges, employees feel more connected and valued, knowing they’re in the loop. This clarity helps reduce uncertainty, which is a significant factor in reducing stress and boosting motivation. 

Unfortunately, recent employee engagement statistics show some bleak numbers in this area. According to recent Gallup findings, employee trust in leadership has significantly declined in recent years, with only 23% of U.S. employees “strongly agreeing” that they trust their company’s leadership.

Thankfully, organizations can implement strategies for improving organizational communication and trust. At the organizational level, leaders can hold regular all-hands meetings to discuss the company’s goals, challenges, and progress. Accessible channels for sharing company updates can also be set up, which can keep everyone informed and aligned. 

Zooming in on a team level, managers can hold frequent check-ins, encourage open dialogue, and actively listen to concerns. Executing an open-door policy can make it easier for employees to voice their thoughts while providing regular feedback.

8. Fair Compensation and Benefits

We couldn't finish this article without mentioning compensation. Of course, pay isn't the only factor driving employee engagement, but it's a crucial baseline factor. When employees feel fairly compensated, it sends a clear message that their work is valued and that the organization respects their contributions. In other words, ensuring fair pay directly addresses basic human needs for security and recognition.

Looking at classical psychological theories like Maslow's hierarchy of needs, we can see that financial security is fundamental and needs to be met before humans can feel motivated to work towards and focus on higher-level motivations like achievement and growth. Seeing results like this one from Calm's yearly Voices of the Workplace Report makes sense. It shows that employees' top mental health stressor in 2024 is the cost of living/inflation. When people are not able to meet these fundamental needs their mental, emotional, and even physical health can suffer.

This research suggests that the financial stress of not being able to make ends meet or keep up with the cost of living has a significant detrimental impact on people's mental health. For employers, this has substantial implications. People's work performance, concentration, and productivity suffer when they are chronically stressed and worried about their living situations and finances. To that end, ensuring employees are being paid fairly and given a wage that allows them to meet their basic living requirements is critical to protecting employee engagement.

Final Thoughts

Employee engagement is a multifaceted and deeply rooted aspect of organizational success.

While it may be tempting to rely on surface-level activities like social events or extra snacks, true engagement requires a more thoughtful and comprehensive approach. By focusing on core drivers like meaningful work, quality leadership, and, recognition, organizations can create an environment where employees feel valued, motivated, and connected to their work.

Implementing these drivers of employee engagement isn’t about making sweeping changes overnight. Instead, it's about consistently cultivating a workplace culture that prioritizes these core elements, leading to a more engaged, productive, and loyal workforce. Remember, engagement is an ongoing process, not a one-time initiative. By taking the time to understand and address what truly drives your employees, you’ll be investing in the long-term health and success of your organization.

A successful business is one with engaged employees. In fact, we've recently reported statistics finding that companies that actively make an effort to engage employees can reduce turnover by over 18%. Despite that, 85% of employees aren't engaged at work. One of the biggest reasons why? A lack of well-being in the office. Due to factors like stress, worsened health and wellness, and toxic workplace cultures, many employees feel they don't receive the support they need to stay at their current jobs.

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Fortunately, this is something your own business can avoid. With the right strategies, you can enhance your employees' well-being in the workplace and better engage them in all the right ways. Here are some health and wellness tips you can try to achieve just that.

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Promote better eating

Ensuring employees get the proper nourishment, even just at the office, will guarantee that they can always function at their best. That means sharpened physical and cognitive skills for more energy, less absenteeism—and, ultimately, improved productivity. Case studies on workplaces in Canada and other countries around the globe even find that nutrition-focused workplace interventions can significantly influence how healthily employees eat at home, which can help them feel like you genuinely care for their well-being and better engage them at work. Some things you can try to promote better eating include providing healthy meal and snack options in the office and curating more nutritious menus when booking catering services for work events.

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Motivate more movement

This tip is one you should keep in mind if your employees work desk jobs. Prolonged periods spent sitting down can negatively impact their health by elevating blood pressure and sugar levels while increasing their likelihood of developing obesity and even cancer. That said, give your employees more opportunities to move around. Think of walking meetings and staff walking contests; charity runs as team-building activities and gym memberships as employee incentives. 

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You can also integrate that motivation for movement into your employees' daily routines. In particular, consider outfitting their workspaces with ergonomic furniture. Sit-stand workstations like the VIVO and VariDesk Pro Plus 36 can help employees vary their work positions and break up those long sedentary periods during office hours, reducing the risk of them developing aches and pains that can ultimately take away from their well-being. In fact, standing desks have helped big companies like CBRE create modern workspaces that significantly increase employee satisfaction.

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Prioritize vision care

Though digital transformation has been especially beneficial for businesses, companies need to watch out for worsened employee eye health. An increasing reliance on devices to get jobs done means more screen time. That can cause pain and discomfort through computer vision syndrome, negatively impacting their productivity and well-being. 

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Fortunately, you can avoid that by prioritizing employee vision care. Consider starting by working with optometry clinics to provide eye exams free of cost to your employees. That can help them easily determine if they need to buy corrective aids or update their existing prescriptions. You can help here, too. By allocating funds to add vision care to your benefits package, your employees can purchase eyeglasses from reliable brands at a cheaper price. One major retailer you can consider is Ray-Ban. It accepts most insurance plans upon checkout, meaning employees can more easily avail of eyewear from its optical line. Aside from updated prescriptions, these can come with advanced lens technologies like blue-violet light filtering to reduce eye strain from excess screen time. Ultimately, that means you can give your employees a more accessible way to safeguard their eye health at work and improve their overall well-being.

Support mental health

Another thing you need to keep in mind is that the modern business landscape is more fast-paced than ever. That means employees are more likely to get stressed and burn out—making it especially vital for you to engage them in ways that support their mental health. One way you can start is by promoting better work-life balance. Offer flexible work arrangements, establish boundaries like discouraging work communications outside office hours, and support employees taking time off for mental health reasons. 

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For longer-lasting results, consider implementing more serious workplace initiatives similar to Health Canada's Employee Assistance Program, which provides federal employees and their families 24/7 access to mental health support. Your efforts in this direction can involve connecting your own team to mental health professionals for counselling and offering rebates for any sessions they attend. As with vision care, you can also add mental health coverage to your benefits packages. With nearly 43% of Canadian employees unable to afford mental healthcare, your efforts can help better enhance their well-being for improved engagement.

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The term "employee engagement" is often used in the HR sphere and can start to sound like just another corporate buzzword. Yet, in the day-to-day reality of a workplace, how engaged employees are impacts so many important workplace metrics like morale, productivity, and overall organizational performance. 

The case for employee engagement is strong – it’s not just a fluffy corporate concept but a key driver of company performance. Research by Gartner reveals that higher employee engagement is associated with tangible benefits for organizations, such as increased revenue growth, net profit margin, customer satisfaction, and earnings per share. 

Despite the widely recognized importance of employee engagement, recent statistics paint a bleak picture. Gallup's yearly State of The Workplace report reveals a significant decline in employee engagement, with a staggering [85%] of employees not engaged at work. This marks the lowest level of employee engagement in 11 years, highlighting the urgent need for action.

So, how can businesses achieve such a nebulous goal? It would be similar to trying to reach a personal goal, like being happier and leading a more fulfilling life. Of course, these goals can't be reached overnight by implementing one or two changes in your life. It is a multi-step process that requires strategic thinking.

Employee engagement plan: A holistic approach

To that end, companies need to think long-term to combat employee disengagement. Building an employee engagement plan is a great starting point. This is an actual action plan that should be well thought out, implemented, and, of course, documented.

This article is designed specifically for HR professionals ready to take a more strategic and comprehensive approach to employee engagement. Whether you're looking to revamp your existing initiatives or build a new engagement plan from the ground up, this guide offers valuable insights and practical steps to help you achieve your goals.

We will explore common mistakes when creating an employee engagement plan and outline key steps to creating and implementing an effective strategy. Additionally, you'll find tips to navigate common pitfalls and ensure your engagement efforts yield long-term benefits. By the end of this article, you will understand how to cultivate a thriving workplace culture where employees feel valued, motivated, and committed to your organization's vision.

5 Mistakes When Creating an Employee Engagement Plan

1. Looking for silver-bullet solutions

"Employee engagement" is a big, cloudy term. It's a concept that, when understood, can bring significant benefits to a company. Yet, ask different people what it means, and you will receive various answers. This lack of a unified understanding can lead to skepticism about the ROI of employee engagement. If you can't prove with some level of certainty what kind of benefit the company will derive from it, your initiatives may not be approved. 

As a result, most companies don't even have an employee engagement plan in place. Rather, they favor low-cost or single-stroke solutions, and employee engagement isn't looked at holistically. For example, businesses may lean towards surface-level initiatives like mindfulness training, snacks in the breakroom, and social events. Of course, these programs and activities can improve work culture and boost temporary morale, but they aren't strategies. 

This idea is explained in the Psychology Today article When Workplace Mindfulness Training Is Worse Than Nothing. The author explores how using "token gestures" like mindfulness training to help employees cope with stress and burnout can backfire. When serious, underlying issues are overlooked, these gestures appear hollow to employees. In turn, they can actually make employees feel worse – even more angry and cynical – than if a business had done nothing at all! 

2. Assuming why employees aren't happy

If you Google "employee engagement idea," you'll surely fall on several list articles offering ideas on how to engage employees. You might find solutions like "snacks in the breakroom" or "organizing a fun social event." While these ideas might help temporarily boost employee morale and create a fun working atmosphere, they are certainly not employee engagement strategies.

Strategic employee engagement involves identifying and addressing your employees' deeper pain points and challenges. This approach is not about guesswork or assumptions but about developing targeted solutions. A key step in this process is to directly survey or converse with your employees about their experiences within your organization.

Gathering objective, data-driven insights and feedback can help you understand where your employee experience falls short. For example, are your employees satisfied with their compensation, leadership, day-to-day duties, and the company's overall culture? You only know once you ask. If you operate on assumptions, you risk developing initiatives and solutions that do not address the real problems your employees are facing.

3. Copy-pasting other businesses

Similarly, you should ask yourself: Are you developing employee engagement initiatives based on your employees' actual pain points, or are you just copying/pasting trendy HR initiatives other businesses use? 

It might be tempting to copy popular HR initiatives that seem to be working well for other businesses. The problem is that their workforce may differ completely from yours—the company's demographic profile may be unique in many ways. As a result, they may be facing a different set of challenges. 

Being more strategic starts with uncovering exactly what your employees are struggling with. It's about developing solutions that directly address those issues and needs. This may take more steps and time than just coming up with an idea and rolling it out. However, the benefit is that the initiative will be more likely to be successful long-term because it addresses a real and current problem in your company, not just assuming what your employees will want.

4. Only looking at the short-term gains

Employee engagement is a long game. In short, it's a marathon, not a sprint. Similar to achieving any long-term goals in our lives, like being happy in our careers or bettering our physical health, these goals cannot happen overnight. They are the fruit of consistent, small steps that compound over months, if not years. 

However, businesses often lean towards short-term initiatives that promise quick rewards. This preference for 'low-hanging fruit' can divert attention from developing robust employee engagement plans, which are more likely to deliver sustainable business results. 

When businesses are biased towards short-term gain, they often resort to a reactive approach to employee engagement. In other words, engagement initiatives are only considered and developed once a glaring problem, like high turnover or low morale, crops up. 

When these engagement issues reach a boiling point, they are likely complex and caused by an interplay of factors that not one employee engagement initiative, like "snacks in the breakroom," will resolve. That's why developing a robust employee engagement action plan is a critical step for companies that want to take a proactive approach to employee engagement and address some common issues before they spiral into more complicated problems for your business. 

5. Failing to track the impact of initiatives 

Employee engagement is like personal happiness, a nebulous concept that can ebb and flow. While it can be objectively measured with surveys, what can be more difficult to achieve is proving how employee engagement impacts businesses financially through metrics like productivity. 

In other words, many businesses roll out engagement initiatives only to fail to track their objective impact on their company via metrics like employee happiness, engagement, turnover, etc.

As a result, ROI-focused executives may be reluctant to invest in employee engagement initiatives further if HR teams can’t articulate a clear or expected ROI for the business. In turn, it can be difficult for HR teams to get even a small slice of the budget. 

Learning to track and measure the impact of HR initiatives is critical to approach these conversations with decision-makers more logically. A concrete action plan can help you show executives clearly.

• What workplace metrics you’re looking to impact (i.e., employee turnover, eNPS, etc.)
• Which initiatives will help achieve this goal
• Milestones you’re aiming to reach

When presented with a clear plan that outlines concrete, measurable goals, ROI-focused executives can feel reassured and confident in the capacity of these initiatives to produce tangible results. Once the impact of these initiatives is proven, it can unlock the necessary resources and support for more impactful engagement initiatives in the future. 

Related: Uncover the potential ROI of your recognition program with our free Business Case Template

5 Steps to Create an Effective Employee Engagement Plan

Step 1: Identify high-level problem areas

The first step is to zoom out. Think about the big picture of your workforce and company.

What areas do you believe need work? If you are an HR professional or leader in your business, I’m sure you already have some theories or an intuitive idea of where employees are unsatisfied. Although formal surveys are useful, you may already know where your business needs work based on casual conversations with peers and second-hand information.

For example, here are some common high-level drivers of engagement to consider:

• Benefits and compensation
• Leadership and management
• Rewards and recognition
• Well-being and mental health 
• Safety and security
• Career growth and development

All of these areas are critical to employee happiness. To approach your employee engagement plan more holistically, you must start by identifying which areas need the most urgent attention in your business.

Step 2: Survey employees (back it up with data)

The next step is to back up your intuition or theories with concrete data. The best way to achieve this goal is to speak with or survey employees to assess objectively how your business is performing in each area. Depending on your budget, there are various approaches to collecting employee data. It's important to remember that a large budget is unnecessary, particularly for small businesses. In fact, this goal can be easily achieved with free online survey tools, making it a feasible and accessible process for businesses of all sizes. 

Related article: Face the Truth, 6 Questions to Evaluate Your Staff Motivation

Step 3: Develop your key initiatives

Now it's time to zoom in. Once you've conducted your employee surveys, you should better understand where your business is falling short and, in turn, where your HR priorities should be. For example, you may find out your company is falling short in the area of "rewards and recognition."

At this point, the goal is to develop specific and concrete initiatives relating to each high-level area of employee engagement and document those as well! 

For instance, prioritizing rewards and recognition is a powerful tactic to enhance employee engagement. But this tactic can be expressed in many ways. It's up to you to "bring it to life" with specific initiatives. For example you could implement a peer-to-peer recognition program, a work anniversary program, or offer a budget for lunch and celebration for employee birthdays.

Initiatives are not just specific; they are strategic. They should mirror and strengthen your organization's core values and culture. Most importantly, they directly address the engagement issue within your business. To build a robust, long-term engagement plan, start by selecting one or two drivers of employee engagement (for example, Career Growth and Leadership) and asking yourself: How are we doing in this area? Or, what could we do better? This strategic approach will instill confidence in the effectiveness of your plan.

By the end of this process, you should have a list of actionable initiatives to help kick-start your engagement plan.

Step 4: Establish key metrics to track

Your employee engagement plan must include benchmarks (or success metrics) to help you track the progress of your initiatives. 

This is a critical step for both your team and for receiving buy-in from executives. If you can show that your initiatives are impacting the business, your decision-makers will be more likely to free up time and resources for your team to continue making efforts in these areas.

Examples of benchmarks can include: 

• Increasing eNPS scores by X% in the next six months
• Increasing retention by X% in the next year
• Decreasing absenteeism by X% in the next year

Step 5: Adjust the plan accordingly

An employee engagement plan should never be set in stone. A business is always in flux; employees come and go, and external influences such as the job market and the economy's health will affect the business and its employees. 

As such, whenever you create an employee engagement action plan, remember that this plan can constantly shift and change as your business's priorities shift. For example, you may consider "career growth and development" a top area of consideration. However, after a few months, the priorities might shift to other areas, such as "rewards and recognition" or "wellness and mental health."

We strongly advise revisiting your plan every 3-6 months to ensure its relevance. This proactive approach reassures you of the plan's effectiveness and instills confidence in your employees that their needs and wants are being considered and addressed. 

Final Thoughts

Employee engagement is more than planning one-off social events or providing better snacks in the breakroom. Of course, these small perks and events do help to temporarily bolster company culture and morale; however, they are not strategies and fail to address employee engagement issues holistically.

To strategically address employee engagement, you must peel the layers back and look deeper. The goal of a robust employee engagement plan is to validate with objective data where and how your employee experience is falling short in some key areas, like benefits, compensation, recognition, and leadership, and make changes accordingly.

This involves continuous feedback loops, transparent communication, and a genuine commitment to improving based on employee input. Only by embedding these principles into the fabric of your organizational culture can you foster a truly engaged and motivated workforce, driving long-term success and fulfillment for both employees and the company as a whole.

Organizing office events that resonate with employees can be challenging for leaders and HR professionals. Whether your company is a startup with a handful of employees or a large corporation with hundreds, finding the right activities everyone enjoys—and ensuring high attendance—can feel like an uphill battle. 

As we all know, traditional office parties and standard team-building exercises sometimes fall flat, leading to low participation and reduced engagement. Employees may feel that these events are just another obligation rather than an opportunity to relax and connect with their colleagues.

To help solve these challenges, let’s have a look at a few fun and budget-friendly office event ideas. These suggestions are designed to cater to businesses of all sizes, ensuring that there is something for everyone, regardless of company size or budget. From interactive workshops and themed parties to wellness activities and outdoor adventures, these events will spark creativity, boost morale, and encourage participation.

Incorporating these corporate event ideas into your calendar can create a more dynamic and inclusive workplace culture. So, let's dive in and discover how you can transform your office events from mundane to memorable, making them an anticipated highlight for all employees.

12 Office Event Ideas To Put in Your Calendar (for Every Sized Business)

1. Innovation Labs

Ideal for: Small to medium-sized businesses

Budget: None

How it works: An "Innovation Lab" is an exciting initiative where companies allocate dedicated time for employees to come together and brainstorm innovative ideas. Open to participants from all departments, this initiative encourages creativity and out-of-the-box thinking, free from the typical constraints of the workday. A moderator should host sessions and can have some parameters around them, like each session can cover a certain topic or area of improvement. The sessions can be hosted more frequently, like on a monthly basis or even just a few times a year. Ultimately, it's up to you! One of the greatest benefits of these events is that they are free to roll out and host.

2. Volunteer day

Ideal for: Small to medium-sized businesses

Budget: May require a small budget

How it works: Volunteer Day allows your company or certain teams to dedicate their time and effort to a cause they care about. During a volunteer day, employees are offered time away from the office to volunteer for a particular organization in the community. Some organizations require a donation for corporate volunteer days – hence the possible small budget required, but some don’t. If your company is trying to get more involved in social causes, this might be a fun and meaningful way for your team to get together and spend an afternoon. 

‍3. Lunch and learn

Ideal for: Any sized business

Budget: None

How it works: "Lunch and Learn" sessions are informal training events held during lunchtime, where employees can gather to learn about a variety of topics while enjoying their lunch. These sessions can be a great way for internal talent to show off their knowledge and expertise in certain areas, as these sessions are usually hosted by employees themselves and cover a wide range of subjects. Lunch and learns are also ideal for fully remote teams, as they allow employees to get together, learn from each other, and chat in a more informal setting. 

‍4. Fitness challenges

Ideal for: Small businesses

Budget: Small budget for prizes for winner

How it works: Launching a fitness challenge can be a great idea for small businesses looking to develop a wellness program for employees who are already active or eager to be more active! Each fitness challenge can have a theme like “monthly step goal challenge” or “monthly running challenge.” Set up a reasonable goal that employees have to reach for this particular challenge and ask employees to keep track of their activity. At the end of the month, those who reach the goal can receive a prize. This can also be a great activity idea for remote teams, as they can keep each other in the loop of their progress towards their fitness goals via creating a channel in your chat tool for this monthly challenge or if you’re using an employee engagement tool like Qarrot employees can post updates on the company’s newsfeed.

‍5. Photo contest

Ideal for: Small to medium-sized businesses 

Budget: Small budget for prizes

How it works: Photo contests are ideal for remote teams, but they also work for hybrid teams or teams that are fully in the office. These types of creative contests are great for employees to show off their artistic skills and serve as a jump-off point for discussing non-work topics like pets and vacations. In short, they are a great icebreaker! The event is simple; it asks employees to present their best photographs, and usually, there is a theme. For example, pets, nature, travel, etc. For remote teams, photograph submissions can be made in a chat channel created for this challenge, and a panel of judges can rate the quality of the photographs based on certain criteria. The winners, of course, receive a small prize. 

6. Job shadow day

Ideal for: Any sized business

Budget: None

How it works: When you work for an organization, it's normal to be curious about what other people in your company do daily. Moreover, it can actually be a great way to boost a company's performance and collaboration when people appreciate what another's job entails. In addition, some people may be curious about moving positions but unsure if it's right for them. Job shadowing is a great opportunity for employees to learn about each other's work and test the waters of a new role or responsibility. Setting up a special day where any employee can shadow another for an afternoon is a great way to hit all these goals all the while being budget friendly.

‍7. Outdoor picnic

Ideal for: Small to medium-sized businesses

Budget: Modest to moderate

How it works: A classic company outing is a great way to give your employees a way to relax and unwind during the warmer months of the year. This is an ideal opportunity to offer employees half an afternoon off; consider making the picnic during lunch hour and allowing employees to enjoy the rest of the afternoon with their colleagues. They may not be traditionally ‘productive’ during this time. However, taking the time to bond with teammates is an important part of morale and team building and indirectly impacts productivity and engagement.

9. Talent show

Ideal for: Small to medium-sized businesses

Budget: Modest

How it works: Hosting a company talent show can be a playful, creative, and, not to mention an often hilarious, way for employees to express themselves, get to know each other, and break free from the daily grind. These talent shows should be open to any and every employee who wants to show off a special skill, and they can also be scaled up or down depending on the size of your company and budget. There is a lot of flexibility here, depending on how big or small you want this event to be! In addition, you can make it into a really friendly competition, and a panel of judges can score participants so that your winners receive a prize. 

‍8. Friday happy hour

Ideal for: Any sized business 

Budget: Modest

How it works: A classic happy hour or a “beer Friday” event is always a tried and true idea for employees to unwind and reward themselves after a long work week. These events should never be mandatory but more casual, allowing employees to pop in for a drink and refreshment before heading home. To spice up your happy hour, consider incorporating some ice breaker exercises or games to help people ease into interacting. A few icebreakers can be highly appreciated by socially introverted individuals and a great motivator to get them involved in these events.

‍9. Employee recognition events or “office awards”

Ideal for: Any sized business

Budget: Modest

How it works: An office award ceremony is a lighthearted and informal event celebrating team members' unique qualities and contributions. This event can be a standalone, or part of a greater recognition and rewards program and initiatives. Categories could include "Best Attitude," "Best Outfits," and "Most Helpful," highlighting both professional achievements and personal flair. Preparation includes picking fun award categories, gathering nominations, and making simple yet personalized awards, like certificates and trophies. The event can also have refreshments, music, and an MC to present the awards. The goal is to boost morale, foster camaraderie, and recognize the diverse talents and personalities within the team. With a little bit of creativity, resourcefulness, and the right communication tools like Qarrot, these types of office awards can be hosted virtually for remote teams as well.

‍10. Family days

Ideal for: Small to medium-sized business

Budget: Modest to moderate

How it works: Organizing a "Family Day" for office workers involves planning a fun and inclusive event that welcomes employees' families to the workplace, fostering a sense of camaraderie and community. When employees get to know each other's family, it can foster a sense of closeness that can actually be beneficial to employee happiness, engagement, and even productivity. Not to mention, having an afternoon where employees are encouraged to have fun and relax can show employees you care about their well-being. The event can involve games, refreshments, workshops, and other activities that are family-friendly. This can all be achieved on a small to moderate budget with some resourcefulness and creativity.

‍11. Cultural festivals

Ideal for: Any sized business

Budget: Modest to moderate

How it works: Workplaces are richer when diversity is celebrated and educated. By hosting a cultural festival, your office can honor many nationalities. You may want to set up various stations on the same day to emulate a trade show or hold a series of festivities throughout the year.

Here are a few global holidays and festivals you may consider:

• Holi: An Indian spring festival often celebrated by throwing brightly-colored powder, occurring at the end of March
• Cinco de Mayo: A Mexican holiday celebrated on May 5th and has evolved into a significant cultural celebration of Mexican heritage and pride, marked by festivals, music, dancing, and traditional Mexican foods.
• Lunar New Year: Following a lunar calendar, many Asian countries celebrate new Year over two weeks in January or February. Families celebrate together by eating large meals, cleaning, and honoring ancestors.
• Oktoberfest: A German beer-centric festival that takes place the last week of September and the first week of August.
• Carnivale: A mid-winter celebration popular in Brazil and the Caribbean with parades and elaborate costumes.

12. Company tailgate

Ideal for: Small to medium-sized 

Budget: Modest 

How it works: Organizing a company tailgate involves planning a casual and enjoyable event that allows employees to unwind and socialize in a relaxed outdoor setting, often in conjunction with a sporting event. To ensure it's fun and relaxing, select a suitable location, such as a stadium parking lot or park, and set up tents, seating, and tables for comfort. Arrange for classic tailgating activities like grilling, games (e.g., cornhole, ladder toss), and possibly a live stream of the game if not attending in person. Various food and beverages, including non-alcoholic options, ensure everyone is catered to. Organize carpooling or provide transportation to facilitate attendance, and consider creating a sign-up sheet for potluck contributions to diversify the food offerings.

Final Thoughts

When employees take the time to socialize at work and get to know each other, it fosters a deeper sense of engagement and happiness in the workplace. This can have a huge, positive impact on a company's productivity and even overall performance.

The problem is that socialization cannot be forced. But sometimes, people need a little push to get out of their comfort zone. In other words, they need a bit of motivation to get to know each other. These office event ideas allow employees to meet each other and socialize in a relaxed, casual setting while being budget-friendly. Hopefully, these social events will be the jump off point you require to create some buzz and engagement in your workplace. 

There was a time when checking in with your workforce was simpler. You could monitor employee morale by scanning the office during your morning stroll to the lunchroom for that second cup of java. 

However, the workplace has evolved dramatically.

With the rise of remote work, flexible hours, and diverse global teams, the old "reading the room" method doesn’t cut it anymore. Add on a frontline workforce and a business leader’s job is even more challenging. 

As the dynamics of our work environments have shifted, so too have the needs and expectations of employees. Today, staying connected with how employees feel is essential for business success. 

Here’s how data can be used to create a more supportive and engaging workplace. 

Why Boost Morale and Recognition? 

The overall sentiments within a workforce can influence the success or failure of your organization.

Dissatisfied employees have led to the downfall of many companies—just look at Circuit City. Haven’t heard of them? That’s because a disgruntled workforce contributed to their 2007 bankruptcy.

Elevated employee morale is closely linked to employee engagement. And engaged employees are generally more motivated and committed to doing a good job. They work more productively because they enjoy their roles and are likely to speak positively about your organization, which can help attract new talent. 

The impact of happy employees extends beyond internal operations. Your employees are the face of your company. When content and motivated, they deliver better customer service, directly influencing customer satisfaction, loyalty, and profit.

High morale is also an excellent buffer should your organization experience a big change. Recognized and valued employees are more likely to trust their leaders and stay committed during a rough patch. 

Boosting morale and recognition helps build a stronger, more cohesive team and fosters an environment where employees thrive, innovate, and drive sustained growth. Conversely, low morale can lead to higher absenteeism, decreased productivity, and, ultimately, a negative impact on your bottom line.

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6 Tips to Use Data to Improve Morale and Recognition

Data isn't just a tool for measuring sales or tracking logistics anymore—it's also helpful in understanding and improving employee morale.

Your organization can create a more engaged and satisfied workforce with thoughtful data analysis and strategic implementation. 

Here’s how you can use employee data to help boost morale and recognition.

1. Conduct Regular Employee Surveys

The best way to learn how your employees feel is, well, to ask them! 

But depending on the size of your workforce, it could take an entire year to ask each one individually. And then collating that data would be a spreadsheet nightmare. 

However, thanks to digital platforms like SurveyMonkey and UKG, sending anonymous employee surveys is now easier than ever. These apps, and others like them, analyze the results with statistical tools that reveal patterns and pinpoint areas where employees feel overlooked or under-appreciated. 

Transparency in sharing these findings and action plans to address them helps boost trust and morale by showing that feedback leads to real change.

2. Create Unbiased Employee Reviews

An unfair work environment can lower morale faster than a four-year-old can drop an ice cream cone. 

Whether intentional or subconscious, workplace biases can lead to a sense of injustice, undermine the credibility of performance evaluations, and significantly impact career progression and satisfaction.

No one wants to see Carl get the promotion that Jane so clearly deserves. 

Once again, it’s data to the rescue. Advanced data analytics tools can examine employee review scores across demographics and departments. This can help identify any disparities or trends that might suggest bias. For instance, if a particular group consistently receives lower performance ratings despite similar output and engagement levels, this could indicate a systemic issue that needs addressing.

Creating a standardized scoring system is another effective way to ensure fairness in employee evaluations. A system that uses specific, measurable benchmarks for job performance rather than subjective feedback can provide an objective assessment.

3. Monitor Workload and Overtime

It’s easy to lean on your employees to pick up the slack in a worker shortage, or unwittingly pile on the work without realizing the impact on your employees.  However, overwork can lead to a burned-out and despondent team. 

The good news is that tools like Toggl or Asana have time trackers that can illuminate how employees spend their time, and highlight where they are bogged down. Evenly distributing the workload based on this data can help prevent burnout and communicate to employees that you care about their well-being. 

Plus, regular workload reviews encourage open discussions between employees and management, cultivating a commitment to maintaining a healthy and balanced work environment.

4. Implement a Peer Recognition Program

There’s nothing quite like peer recognition to put a little pep in your step. Your colleagues know what goes into doing your job well, so recognition from them carries a lot of weight. 

Peer recognition programs can improve morale by fostering an environment of appreciation across all levels of your organization. In fact, studies show that 37% of employees want to be recognized at work. And when recognized, the effort meter can rise by 69%. Not bad for a simple “thanks for doing a great job.”

Make recognition part of your company culture and set up a system that allows employees to award each other points or badges for daily wins and helpful behaviors. A little positive reinforcement in the workplace can go a long way in helping your employees feel good about their jobs and your organization. 

5. Communicate Employee Growth Plans

Data can help develop and communicate employee growth plans. Analyzing performance metrics, training completions, and career progression paths can help build individualized development programs that align with company goals and personal aspirations. 

This approach ensures employees see a clear trajectory for advancement and understand the milestones they need to hit. Regularly updating employees on their growth plan progress via digital dashboards or one-on-one meetings keeps them engaged and aware of their professional development, enhancing their motivation and job satisfaction.

6. Measure Morale KPIs

Setting clear key performance indicators (KPIs) for employee morale is critical. To know where you’re going, you need to understand where you started, and how you’re measuring success.

These KPIs could include metrics like employee net promoter scores (NPS), turnover rates, frequency of peer-to-peer recognition, and results from regular engagement surveys. 

No matter what KPIs you choose, what’s important is that you create a quantifiable morale benchmark and regularly evaluate the effectiveness of new initiatives. 

Build a Thriving Workplace Culture

Using the insights provided by data, you can help your team stay ahead of the curve and feel genuinely appreciated and valued.

And although data is integral to boosting employee morale and recognition, don’t forget human connection is still central to building a thriving workplace culture. After all, behind every data point is a person who contributes to the success of your organization.

In today's workplace, staying current on the latest trends in employee engagement isn't just beneficial—it's essential. As we get deeper into 2024, learning about the dynamics of workplace engagement can significantly impact organizational success. 

Drawing on recent findings from industry leaders like Gallup, Calm, and BetterWorks. We've curated a list of 18 critical statistics encapsulating the current state of employee engagement. These employee engagement statistics provide an overview of what drives higher engagement, common issues companies face, and innovative strategies to combat them. 

Whether you're looking to refine your HR strategies, benchmark your company's performance, or stay ahead of the curve, these statistics offer valuable guidance. They reflect broader trends in corporate culture and employee expectations and shed light on the effectiveness of new tools and methods in enhancing employee engagement.

What is Employee Engagement

If you search Google for “employee engagement ideas,” you’ll surely come across many articles that share ideas like “bring your dogs to the office” or “plan team-building activities.” While these might be good ideas that can help boost culture and morale, genuine efforts to improve employee engagement go much deeper than these types of surface-level initiatives.

For example, engaged employees are more likely to agree with some of the following comments:

• In this organization, the leaders demonstrate integrity. 
• I find my job rewarding and challenging.
• My employer cares about my opinions and suggestions.

Interestingly, in this Psychology Today article titled "Why Do Employee Engagement Initiatives Fail?" author asserts that "many engagement interventions focus solely on addressing surface-level indicators of engagement." He argues that, as a result of this, "organizations may implement superficial solutions that fail to address systemic issues such as poor leadership, lack of career development opportunities, or workplace inequities."

Investing in corporate training solutions can enhance leadership, foster growth, and create an inclusive workplace. Effective training helps develop strong leaders, improve communication, and address disengagement at its core.

As you can see, the experiences of highly engaged people have little to do with the types of social events the company plans or snacks available. True employee engagement has more to do with the quality of the leadership and the emotional and intellectual components of a work environment. 

Drivers of employee engagement

That said, if you think about what makes up a truly engaging work environment, you can break these factors down into several components that are shared across industries. These are considered key drivers of employee engagement.

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For example:

• Employee stress & Well-being
• Leadership & Management
• Career Advancement & Growth 

In our look ahead 2024, we will examine three of the most critical drivers of employee engagement and the related statistics. We’ll see how organizations are faring in each of these categories and what this means for HR professionals for the year ahead.

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20 Employee Engagement Statistics You Should Know For 2024

Employee Sentiment & Engagement

1. 85% of employees are not engaged at work. Gallup

After climbing and reaching a record high in 2022, according to Gallup’s seminal yearly State of The Workplace report, employee engagement has dropped significantly as the majority of employees are not engaged at work. 

2. 81% of hybrid employees report high engagement.  Quantum Workplace

Engagement rates vary based on work arrangement; hybrid employees have the highest level of engagement, while in-office employees have the lowest (72%), and fully remote employees are in between (78%).

3. Businesses that actively engage their employees see an 18% decrease in staff turnover. Gallup

It’s no surprise that actively working to improve employee engagement leads to better outcomes in employee engagement levels within an organization.

4. Office workers, salespeople, and construction workers have the lowest level of engagement among employees, with a mere 12% rate. Gallup

‍Employee engagement in manufacturing has always been challenging. Due to the inherently difficult working conditions of these environments, HR professionals in these settings have additional obstacles to overcome when it comes to employee engagement.

5. Only 16% of employees use technology to track their engagement levels. Gartner

Many tools and software technologies exist that can help companies and their HR teams track employee engagement more objectively via employee surveys and other measures. Despite the widespread availability of these tools, companies that use them to track engagement are the minority.

6. Half of employees surveyed feel negative about their organization, using words such as “toxic” or “tumultuous” to describe their workplace. Calm

Unfortunately, such a high number of employees feel negative about their work culture and environment. A toxic work culture has been known to be a core driver of employee turnover; identifying the root of this cultural dysfunction is critical to treating and addressing the core of the issue. 

Employee Stress & Wellness

7. 52% of employees reported they experienced a lot of stress the previous day. Gallup

According to Gallup’s yearly State of the Workplace report, employee stress, unfortunately, remains at an all-time high. In the U.S. and Canada, employee stress is even higher, with over half of employees reporting high stress levels at work

8. 85% of HR professionals indicate overworked staff is a pressing challenge. Dialogue

Canadian health tech company Dialogue’s yearly State of Workplace Health and Wellness in Canada report shows that the top challenge faced by HR professionals is the “overworked staff.” This comes after the number one concern of “employee mental health.”

9. 56% of workers said that their level of work-related stress has increased since last year. Owl Labs

Echoing the data found in Gallup’s and Dialogue’s report, OwlLab's yearly State of Hybrid Work Report shows that worker stress has significantly increased. The report also found that worker stress is more of an issue for employees in large companies than for employees in smaller companies.

10. 4 in 10 working Canadians (37%) report that their employers do not prioritize mental health. Dialogue

This is surprising considering that the same study found 86% of HR leaders affirming their companies value employee mental health — highlighting a significant gap between employer actions and employee perceptions.

11. The top mental health stressor in 2024 is the cost of living/inflation. Calm

In Calm app’s 2024 Voices of the Workplace report, they found the top mental health stressor to be increasing the cost of living, followed by financial instability and being overworked. Again, these findings reflect the data provided by Dialogue, showing 85% of HR professionals saying “overworked staff” is their most pressing challenge.

Management & Leadership

12. Only 23% of U.S. employees strongly agree that they trust the leadership of their organization. Gallup

According to Gallup’s yearly State of the Workplace report, employee trust in leadership has dwindled since the onset of the pandemic. 

13. 52% of employees state “a supportive manager” as a “very important” factor in their satisfaction at work. Owl Labs

OwlLab’s report analyzed different factors influencing employee satisfaction, and good management came ahead of other factors like benefits, growth opportunities, and the ability to work flexibly in days. 

14. 72% of Canadian workers strongly agreed that lacking resources and support from leadership is a top contributor to poor mental health. Dialogue

In Dialogue’s yearly report, they examined the factors that impact employees' mental health, top factors included financial situation, job satisfaction, and work-life balance.

15. Only 38% of employees say their manager fosters a low-stress work environment. Calm

Unfortunately, Calm’s yearly report also found that the majority of employees aren’t satisfied with how their managers promote a healthy work environment and manage stress. Only about half (49%) of employees claim that their manager genuinely cares about their well-being.

Career Advancement & Growth

16. According to 42% of employees, better career opportunities is one of the top reason for seeking a new job. OwlLabs

Seeking new and better work opportunities has often been anecdotally cited as a reason employees quit their jobs. OwlLab’s report confirms this trend is still holding strong. Other top factors for employees seeking new job opportunities include better compensation and work-life balance.

17. 63% of HR professionals agree that employee career development is a significant challenge for their business. Dialogue

Diglogue’s yearly report cites employee career development as one of the most significant challenges for HR professionals, along with factors like employee mental health and overworked employees.

18. 37% of organizations plan to invest more in training and development, making it the most common investment area. SHRM

According to SHRM’s State of the Workplace Report, a large portion of the companies surveyed plan to invest more in employee training and development in 2024.

19. 28% of employees stated that compensation was their reason for leaving a job. Pumble

Some new employee engagement statistics published by Pumble show that compensation seems to be the biggest issue for employee retention, along with a lack of career progression and more work flexibility. This result is consistent with the findings from OwlLab’s report as well.

20. 86% of employees say skill development and coaching are important to them, but only 54% are receiving it. BetterWorks

Unfortunately, BetterWork’s yearly State of Performance Enablement Report found a big disconnect between employees' wishes for greater career and skill development and the amount they actually receive from their managers and employers. 

This issue may be the result of inadequate career and development training for middle managers. The same report found that only about 1 in 3 middle managers said they have the clarity, support, and resources from executives to succeed at coaching employees effectively in skills and career development.

Final Thoughts

Exploring these recent employee engagement studies and statistics, we can see some obvious trends and patterns in the workplace in 2024. 

Some findings might surprise you, such as engagement levels being highest among hybrid employees and not those who are fully remote. However, other findings present a more dismal view of the workplace, such as persistent reports of employee’s being overworked, stressed, and suffering from financial worries and hardships.

From the institutionalization of remote work to the importance of mental health support, these insights highlight the evolving landscape of employee engagement. As organizations navigate these shifts, prioritizing strategies to foster connection, purpose, and well-being will be essential for driving success in the future of work.

In the past half-decade, one vital aspect of the workforce has changed: today, talents are seeking positions with employers who put their wellness at a high priority. According to the State of Work-Life Wellness report by Gympass, which surveyed 5,000 people globally, well-being has become a non-negotiable for professionals. One-third of workers said emotional, physical, and financial wellness are the most critical aspects of their happiness and success at work. These concerns were so universal that they remained consistent across generations, seniority levels, and gender identities.

A 2023 Merits report found that poor overall health costs employers $578 billion annually; thus, wellness is as much a company's concern as an employee's. The report indicates that workplace wellness programs positively affect stress management, health behaviors, and even cardiometabolic risk, boosting productivity and enhancing work satisfaction. Therefore, here are the specific aspects companies can zero in on to preserve retention and happiness rates:

Physical wellness

Physical health is a cornerstone of professional success. A Harvard Business Review study of 200 employees found that increased physical activity positively impacted next-day task performance, creativity, and focus. On the other hand, excess weight (a common concern for many employees), which may be due to inactivity, can result in fatigue, low stamina, and difficulty concentrating. Making time to get in shape can be challenging for professionals with busy schedules, highlighting the crucial role of employers in building avenues for healthy exercise routines. HR teams can look up "weight loss workshops near me" to help employees access like-minded members and coaches that fit employees' fast-paced lifestyles. With Peer Group Workshops that have a 97% satisfaction rating, employees can find support and accountability in their journeys; expert coaching and workshops can continue virtually to maintain momentum when work schedules get hectic. These workshops help unite people to work towards individual goals and support each other – soft skills vital in the workplace.

Emotional and mental wellness

Canadian employees already face mounting pressures outside of work that may affect their performance. However, employers have cause for concern as 16% of working Canadians say that work is a frequent or ongoing source of anxiety, depressive feelings, or other mental illnesses. In addition, 30% of employee disability claims are for mental health alone. Thus, wellness programs focusing on emotional and mental stability may help employees reconnect with themselves and their purpose, creating a capable and productive workforce. Previously, we discussed how workplace clubs could facilitate cross-departmental communication and camaraderie. Workshops can focus on teaching stress management techniques, awareness of mental health issues, healthy communication skills, and work-life balance. As we've discussed, such wellness programs have an ROI of $1.50 to $3 per dollar spent over two to nine years. Mentally balanced employees are likelier to stay engaged with their work, creating two-way benefits.

Financial wellness

Another often overlooked aspect of employee well-being is financial wellness. A survey by FP Canada revealed that 45% of employees feel overwhelmed by debt, while 43% are concerned about the future of their finances. According to a TFG report, financially stressed employees are 2.3 times more likely to seek a new job, costing employers up to $250 billion yearly. Employers can be more proactive in helping employees stay on top of their finances. Workshops can be beneficial to bolster financial wellness in budgeting, saving, investing, and managing debt. In addition, access to one-on-one financial counseling workshops could offer personalized support for employees in financial crises. Such workshops can help remove the stigma associated with debt and financial difficulty, empowering personnel with the skills to make informed financial decisions. A survey by John Hancock also found that financial wellness programs can reduce employee financial stress (82%) and make them more likely to stay with their employer (78%), leading to positive outcomes for their employees — and their bottom lines.

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Dedicating additional resources to employee wellness may feel cumbersome when employers would rather focus on productivity. However, wellness itself is the key to enhanced productivity and job satisfaction; ensuring it for every company member should be the utmost priority for every employer.

The manufacturing setting is not your usual work environment. Many of these facilities run 24/7; they never take a day off. Working conditions can be tough — factories are noisy, sweltering hot, and poorly lit. As such, this is not your typical luxuriant office space. Workers face daily challenges, such as long shifts, physically demanding work, and stressful working conditions.

As a result, HR teams face high turnover and burnout rates as well as low engagement rates. Some recent statistics show how difficult employee engagement can be in this sector.

• A workforce institute study found that 62% of manufacturing organizations reported an increase in turnover year over year. 
• A PWC study showed only half (48%) of manufacturing leaders say that most of their frontline workers feel engaged in their jobs.
• An employee engagement report by Workday shows the employee engagement rate in manufacturing is one of the lowest across industries at around 34%.

Improving employee engagement in manufacturing can be challenging. HR teams can also be small and busy with day-to-day tasks like employee relations, onboarding, and worker safety. In other words, daily duties can overshadow long-term goals, such as thinking of employee engagement in a big-picture way. 

But it doesn't have to be this way. The manufacturing industry can benefit from greater employee engagement and use various initiatives and activities to achieve this. And it's a myth that only companies in more "glamorous" and creative industries can benefit from these programs.

In this article, we'll first explore common myths in the manufacturing industry. These misconceptions tend to prevent leaders from reaping the benefits of employee engagement. Then, we will discuss proven employee engagement ideas you can apply today. These initiatives can be a great first step to helping your factory foster a more engaged workforce.

Misconceptions About Employee Engagement in Manufacturing

Those who have worked in traditional manufacturing know that factories are frozen in time. Many aspects of automation, processes, and technology have remained the same over the years. 

Similarly, the mentality and mindset around work and culture have remained unchanged. However, this stagnant environment is also a fertile ground for certain myths and misconceptions about work to thrive. Recognizing and dispelling these misconceptions can open up new avenues for leaders and their companies to adopt innovative methods and improve their culture and engagement.

To that end, it may be a good idea to question whether these ingrained beliefs are true in your workplace and to consider what initiatives you would pursue if they weren't standing in the way.

Myth 1: Employee engagement is only for creative and “fun” industries

Does employee engagement only "work" in fun industries like creative ones or tech? Absolutely not. This is one of the most pervasive misconceptions about engagement in a factory setting. Leaders in manufacturing falsely believe that since the work environment is so different from that of a typical office, these strategies and programs wouldn't work at all. But that is simply not true.

We agree that the factory work environment is starkly different. But the reality is that if your company employs humans, it will benefit from engagement initiatives. It's a matter of tailoring these initiatives and programs to fit your culture and team. And not just taking a one-size-fits-all approach. For instance, recognition programs, team-building activities, and open communication channels can be applied to the manufacturing setting.

Myth 2: Employee engagement is primarily about salary and benefits

One big myth about employee engagement is that it’s all about money. It’s not entirely wrong, as pay does play a major role in how engaged an employee is at work. But it’s certainly not the entire picture. This reality applies to manufacturing, too. 

Yet, many still believe that manufacturing workers are motivated only by compensation. In reality, other components of the work environment influence employee engagement. Factors such as feelings of respect and safety, recognition, career development, and a comfortable working environment play a crucial role in long-term employee happiness and satisfaction.  

‍Myth 3: Manufacturing workers are not interested in professional development

People assume production employees are only interested in their current tasks. They are not interested in growing their career or learning new skills. Not all workers desire rapid career advancement. This fact applies to all sectors, not just factory settings. Yet, people need to remember how important career growth can be to certain people in this sector.

In reality, many manufacturing employees value skill development and career advancement opportunities. To that end, providing training and development programs can significantly increase engagement and retention for these employees.

‍Myth 4: Flexible work arrangements don't apply to manufacturing

It's easy to assume shift workers can't have flexible work hours. Shift work, by its very nature, seems limiting and rigid. But this is a misconception. You would be surprised that leaders can introduce more flexibility into the workplace in several ways.

In other words, even within the limitations of industrial environments, flexibility can be offered in many forms, such as adjustable shifts, job rotations, and accommodating personal needs, leading to higher job satisfaction and engagement.

‍Myth 5: Manufacturing employees don’t care about company culture

Manufacturing work is tough. It's physical, task-focused, and repetitive. There is little time for socializing or even building a culture. By extension, people believe these employees are not concerned with company culture. They don't care for things like social events or activities.

But rememeber, company culture is more than events like birthday parties. Work culture can involve these things, but culture is also about how employees are treated, compensated, and looked after by each other and, most importantly, the company's leadership.

Considering this broader meaning of company culture, it's easy to see why it's just as important in factory environments. A positive, respectful, inclusive, safety-focused culture can deeply impact employee morale, engagement, and productivity.

‍Myth 6: Technology investments are not related to employee engagement

The industrial sector often finds itself frozen in time in terms of technology. Often, technology investments are seen purely as functional or efficiency-driven. In other words, it's not considered a factor that leads to greater employee engagement. 

The reality is that younger employees are entering the workforce. Updating your tools and technology can significantly engage employees by making their jobs easier, safer, and more enjoyable. For example, tools enabling communication and feedback can also enhance a sense of belonging and engagement.

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‍6 Employee Engagement Ideas & Activities for Factory Workers

1. Recognition and reward systems

Recognition is not just about money, although it can be. We are referring to setting up systems and programs that allow your organization to share recognition for employees' hard work in a regular, structured way. Recognition and appreciation are critical to employee engagement, even in the manufacturing setting. In fact, a Manufacturing Institute report showed that workers who felt valued were more than 4X as likely to report high levels of work engagement and less likely to say they feel stressed out on a typical workday. Another popular study of call center workers showed that a simple expression of thanks by someone in authority made people 50% more productive! 

Employee recognition initiatives could include employee of the month awards, spot bonuses for exceptional performance, and team achievement celebrations. Platforms like Qarrot can provide a virtual space to carry out these structured recognition programs. Making it easier for HR teams and managers to offer timely rewards and gifts for employee effort and contributions. ‍

2. Professional development and training

As we mentioned at the top of this article, it's a misconception that factory workers are uninterested in career growth or development. Creating programs that offer training, skill development workshops, and career advancement can increase employee engagement in the factory setting. These programs don't have to be complicated or expensive to implement. They can be as simple as setting up cross-training opportunities for people to learn different aspects of your operations.

When leadership makes an effort to create programs and initiatives that foster employee development, it signals the company cares about investing in the employee's future. And when people feel they are being taken care of and invested in the long-term, they are more likely to give back to the company with greater engagement and energy and more likely to be loyal to a business.

‍3. Paid lunches or snacks

No one loves food more than a hardworking front-line worker. Offering an occasional paid lunch, such as bringing in a food truck or catering meals, can be a simple yet effective employee engagement idea in the factory setting. This is particularly true for locations in food deserts far removed from food establishments. 

In remote industrial areas, workers don't have to worry about finding food or bringing their lunch every day. It also encourages socialization in a more relaxed setting, fostering a sense of rapport among employees. For workers, it's not just about the free meal; it's a sign that their leaders value their well-being and appreciate their hard work. Taking a well-deserved break for lunch can lead to greater productivity, enhanced team spirit, and a more positive workplace culture. All of these are crucial for maintaining high levels of productivity and reducing long-term turnover.

4. Communication and feedback channels

Those working on the front line take the brunt of the hard work in factories. They are the ones directly exposed to the toughest conditions and most prone to accidents. Ensuring these workers are treated with fairness and respect is paramount to fostering employee engagement. Showing respect for these workers begins by listening to their opinions and voices.

Gathering feedback and opening lines of communication can be done ad hoc, as simple as leadership making time to walk down to the floor and speak directly with employees. It can also be done in more formal or structured methods, like regular town hall meetings, suggestion boxes, and surveys with follow-up actions. Whether you gather feedback informally, formally, or both, this engagement strategy is critical for fostering a culture of transparency and inclusivity and making employees feel heard and valued.

5. Ergonomic and comfortable work environments

Manufacturing workers face some of the most back-breaking working conditions. For example, most facilities will always be loud, and you cannot do much to change that. But that doesn’t mean improvements can’t be made in other areas. For instance, upgrading equipment, improving lighting, and providing rest areas with features that employees can use during downtime. All this can help create a more pleasant, comfortable, and visually appealing workplace.

Enhancing this area shows that a company respects the hard work of these workers and cares for their physical comfort and health. As a result, investing in these changes can help increase feelings of trust, engagement, and happiness in your workforce. 

‍6. Performance-based incentives

Compensation isn't the entire picture of employee engagement, but it is critical. As such, introducing performance-based incentives can be a helpful employee engagement strategy.

Some examples include monetary incentives such as team bonuses, safety incentives, profit-sharing schemes, or bonus programs for meeting production targets. Employees are more likely to take initiative, work efficiently, and focus on quality when they know their efforts will be directly rewarded. When applied transparently, performance-based incentives can create a positive work environment where employees feel valued and motivated to contribute to the company's success.

Final Thoughts

Being an HR professional in a factory setting is a different ball game. You’re managing office staff, floor workers, and the often delicate relationship between the two. The day-to-day tasks and fires to put out seem endless. As a result, it’s hard to think about long-term projects related to employee engagement and happiness. Not to mention, fighting for a slice of the budget and building a business case for these programs is another daunting obstacle.

Nonetheless, many leaders in the factor setting still operate on misconceptions, such as the idea that engagement initiatives and recognition programs can only work in young or creative industries. But this is simply not true.

If your business employs people, those people want to be respected, appreciated, and recognized. These are a universal human need, and long-term engagement initiatives are critical to achieving this goal. Ultimately, investing in employee engagement holistically can be the key to building a strong factory culture where workers are happier, more productive, and loyal to your business long-term.

With more employees working both in-office and remotely, it's clear that the future of work is hybrid. In a recent study conducted by Benefits Canada, more than half (54%) of Canadian employers reported that they have begun using a hybrid work model. While this setup has many natural advantages for employees, it also presents a unique opportunity for companies to upgrade their employee benefits, both to attract and retain top talent.

This is important to consider since many traditional employee benefits are not hybrid-friendly, and cannot be fully utilized by employees. By upgrading these benefits, companies can create a win-win situation where employees are happier and more productive, while the employer benefits from increased loyalty and retention. Below are some ideas on hybrid-friendly benefits that your employees are sure to appreciate.

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Desk equipment

Whether companies provide a budget for equipment or provide the actual equipment themselves, allocating resources for employees to be able to build better desk set-ups at home is crucial. Studies have shown that ergonomic desk equipment can improve employee health by reducing strain on their bodies, making them less likely to experience back pain, neck pain, and other posture-related issues. Feeling comfortable in workstations can also reduce fatigue, discomfort, and stress, leading to fewer breaks and higher productivity levels. In addition, better desk equipment like updated laptops or computer models, high-quality microphones, and noise-cancelling headphones can improve communication among both employees and employers.

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Vision insurance

With continuous screen time brought about by the hybrid work setup, employees need to take care of their eyes more than ever. Eye strain and other vision problems can negatively affect productivity and even cause increased absenteeism. This is why vision insurance is a crucial aspect of hybrid work benefits, and why it is in the employer’s best interest to not only offer but also teach their employees how to use vision insurance. Employees can easily cash in these insurance packages for comprehensive eye exams, prescription lenses, and other vision-related expenses, or they can claim back the costs through direct or manual billings. This is easily accessible as some of these insurance processes can be done online through eyewear websites.

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Wellness budgets

While specific wellness programs on their own can be a good employee benefit, these programs assume a one-size-fits-all approach. A company-chosen program may or may not be a good fit for an employee in a hybrid setup, which is why it would be good to amend this type of benefit by converting it into a wellness budget. This allows for flexibility and customization in wellness offerings. Like many other benefits, this can be done through reimbursement for eligible services such as gyms, spas, and various other wellness offerings. This approach can greatly reduce costs associated with traditional in-person wellness programs, and can even accommodate virtual wellness programs for employees who wish to avail of the benefits from the comfort of their own homes.

Flexible schedules

By allowing employees to set their own schedules, especially during remote working days, companies can help reduce their stress and promote work-life balance. Working during hours that suit personal needs and preferences can greatly increase productivity as employees are able to work during the time of the day when they are most awake and alert. Flexible schedules will also enable employees to accommodate other commitments, from prioritizing their mental health to spending time with their families, and many other personal endeavours. All things considered, flexible schedules are a low-cost benefit that can bring about high employee satisfaction. In addition, this benefit will help employers attract and retain top talent, especially those with caregiving responsibilities.


These are only a few benefit ideas that can help your employees and strengthen your company’s relationship with them. For more ideas and other related information on employee engagement and company culture, make sure to check our website!

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