How to Foster Employee Engagement
Discover proven strategies to boost employee engagement, prevent burnout, and personalize the workplace experience.
In these unstable times, with the COVID-19 pandemic accelerating shift to remote work, the economy facing recession, and the younger generation of employees striving for better working conditions or resorting to quiet quitting, employee engagement has become more critical than ever. A study from HR software company Personio showed nearly half of HR decision makers are concerned that staff will leave once the job market improves, however only 26% say that talent retention is the company’s priority.
Discover how culture of engagement transforms the workplace and explore effective strategies to cultivate a fair, supportive, and inspiring environment for your employees.
Companies that took employee engagement to the next level
Patagonia
Patagonia, an American outdoor apparel company, is a privately owned business headquartered in Ventura, California. Founded in 1973 by Yvon Chouinard, Patagonia started as a small company producing climbing gear and has since grown into a globally recognized brand known for its high-quality, sustainable outdoor clothing and environmental activism. The company follows a mission-driven business model, prioritizing sustainability, ethical production, and environmental advocacy, often reinvesting its profits into environmental initiatives and grassroots movements.
The famous activewear brand is known for its authentic approach to gaining employees’ loyalty. The benefits offered by the company go far beyond standard employee support. They include physical and mental wellness, covering travel costs for reproductive and gender-affirming procedures, on-site childcare and covering adoption expenses.
Moreover, Patagonia not only supports its employees but also inspires them to help those in need. The company provides 18 paid hours for civil activism, and runs a program to help employees arrested at protests. Additionally, its Environmental Internship Program offers a paid two-month leave for employees to work with an environmental organization of their choice.
Patagonia’s unique mission and vision form a strong sense of belonging and being a part of something bigger, significantly boosting employee engagement. As a result, Patagonia ranked 8th in Best Workplaces in Retail 2019 and 7th in PEOPLE® Companies that Care 2019.
Valve
Valve, an American video game developer and digital distribution company, is a privately owned business headquartered in Bellevue, Washington. Founded in 1996 by former Microsoft employees Gabe Newell and Mike Harrington, Valve started as a game development studio and gained worldwide recognition with its debut title, Half-Life. Over the years, the company expanded its focus to include digital distribution with Steam, which has become the leading platform for PC gaming. As of 2021, Valve employed 336 people, up from a workforce of 78 employees in 2003.
Valve operates under a unique flat management structure, emphasizing employee autonomy and innovation in both game development and hardware projects. They have no bosses, no fixed departments, and no hierarchy. Valve does not hire “for a specific role”. Employees are free to move between projects, choosing where they can make themselves most useful. For this, there is a special self-organization system known as moving desks.
However, as inspiring as it may sound, the idea might be more attractive than the realization. Valve’s ex-employee reported their flat structure still contained elements of powerful management, but appeared uncontrollable due to absence of a leadership which could address the issue.
McKinsey’s research on the state of organizations in 2023 shows the critical importance of human-centered aspects of leadership, with 46% of respondents craving a role model, 37% in need of inspiration from the others and 35% ready to spend time on mentoring. Moreover, McKinsey’s motivation performance research in 2024 shows only 13% of respondents want complete freedom to decide how they will achieve their goals. It is clear that people still require guidance from competent leaders, truly committed to their work.
Regardless of your company’s structure, there are various drivers of employee engagement. Let’s take a look at some of them.
Workplace morale & motivation checklist
Feeling safe and getting the needed tools for work
First of all, we shall take a closer look at the basic needs of employees, as this is where the engagement starts.
Make sure that your company adheres to all applicable labor laws. Knowing that your position won’t be suddenly laid off, and that the hours of overtime work will be compensated fairly, is a foundation of employee motivation. This can be especially challenging when the company grows and the founder loses sight of what’s happening at every level. Company-wide HR policies can help ensure legal and ethical compliance.
The second important factor after safety is satisfactory working conditions. It means a comfortable, technically equipped office or providing employees with all the necessary software and technical equipment for remote work.
AlloyScan, the new in-cloud solution from Alloy Software for network inventory and audit, can play a vital role in effective IT asset management. It provides a comprehensive IT asset inventory, including detailed software information. By automatically discovering and cataloging all IT assets within your organization—servers, workstations, remote employees’ laptops, switches, printers, and other network devices—AlloyScan offers a real-time, detailed view of your IT environment.
Here’s what AlloyScan looks like ⬇
Cooperation among team members and positive work environment
Nothing boosts employees’ engagement like well-coordinated teamwork, feeling seen and their effort being recognized. Providing opportunities for idea generation and recognizing achievements and milestones fosters a sense of confidence in their abilities. McKinsey’s motivation research has found that most employees feel valued and included when their personal goals are clearly linked into team goals and sufficiently measurable.
Physical and mental well-being
While a company is not directly responsible for the well-being of its employees, it is a good idea to contribute to it. It is important to ensure that the number of working hours leaves time for healthy rest, and that there is not too much overtime. Although every company faces periods of high workload and stress, it is necessary to give employees opportunities to relax and recover after that.
Some companies go even further by offering group therapy sessions, covering the costs of individual therapy, or including it in health insurance programmes. These measures are worthwhile, as employees facing mental health and well-being challenges are 4 times less likely to be engaged in their job, according to McKinsey.
Strategies to increase employee engagement in the workplace
How to engage young employees who “put themselves first”
Case: After the pandemic and amid financial recession, young employees in a consulting firm became much less engaged at work. They started questioning the significance of their work and sought a more balanced lifestyle, dedicating more time to family and personal interests.
Noticing the drop in productivity, management attempted to address the issue by introducing penalties for underperformance. However, this only made things worse—several employees resigned, and the work environment became even more tense.
Solution: The leadership reconsidered its approach and, instead of punitive measures, worked to refine engagement strategies:
- Flexible work hours and remote opportunities
The company offered remote work options and adjustable working hours. These flexible work arrangements helped young professionals manage their time more effectively and reduced stress related to work-life balance.
- Project autonomy
Employees were given more control over their tasks. They could choose projects that interested them, increasing engagement and the sense of purpose in their work.
- Mental health coverage
The firm introduced mental health support initiatives, including coaching sessions, stress management training, and mindfulness programs. This reassured employees that the company cared about them as individuals, not just as resources.
- Fostering a culture of appreciation
Instead of rigid KPIs that contributed to burnout, the company started recognizing not only results but also teamwork, creativity, and resilience. To encourage peer recognition, they also introduced a system where employees evaluate each other’s performance.
- Company values realignment
Management realized that young employees wanted meaningful work. They strengthened corporate social responsibility efforts by supporting charitable projects, implementing sustainability initiatives, and allowing employees to participate in socially significant activities during work hours.
Results: A few months after these changes, workforce turnover declined, while engagement levels increased. Rather than fearing penalties, staff members felt valued and highly engaged in a company that prioritized employee wellness and supported a healthy work-life balance.
How to maintain employee motivation during a crisis–losing a major client
Case: A mid-sized IT software company had a stable revenue stream, with one major client contributing nearly 40% of its income. However, due to an industry downturn and budget cuts, this client unexpectedly terminated the contract. This created an immediate financial gap, forcing the company to revise its strategy.
Employees became anxious about potential layoffs and the company’s future. Productivity dropped, as many workers started looking for other job opportunities. The team spirit weakened, and managers noticed signs of burnout and disengagement.
Solution: Instead of resorting to immediate layoffs or strict cost-cutting measures, the company implemented a strategic approach to retain talent, rebuild motivation, and navigate the crisis effectively:
- Transparent communication
The leadership team held a company-wide meeting to openly discuss the situation. Employees were reassured that layoffs would be the last resort, and management was actively working on securing new clients. Regular updates were provided to prevent speculation and rumors.
- Management through self-defined goals
To encourage diverse perspectives, the company asked the staff to start establishing their own targets. Employees were given greater autonomy to make decisions and take responsibility for their achievement. Small cross-functional teams were formed to develop MVPs (Minimum Viable Products), encouraging knowledge-sharing among employees. The best ideas were given resources for further development, allowing the company to explore alternative revenue streams.
- Temporary project reallocation
Employees whose workload had decreased were assigned to support ongoing projects in different teams, broadening their skill sets. Responsibilities that were previously handled by a single person were adjusted to ensure collaborative execution. Group leaders were given the authority to communicate directly with top management regarding their team’s needs and well-being.
- Proactive client acquisition strategy
The sales and marketing teams worked closely with senior developers to refine service offerings and attract new clients. Existing clients were approached with customized solutions, increasing retention and engagement.
Results: Employee turnover decreased as workers felt reassured and confident in their working place. Two new revenue-generating projects emerged from the innovation challenge, one of which became a long-term business line. The company successfully secured three mid-sized clients within six months, compensating for the lost revenue. Team morale improved, as employees felt they had personally contributed to overcoming the crisis.
Maintaining employee engagement during reputation crisis
Case: The company found itself at the center of a public scandal – perhaps due to allegations of unethical practices, a data breach, or a controversy involving senior leadership. As negative media coverage spread, employees began to feel disillusioned and hesitant to associate themselves with the company. Trust in leadership eroded, and both motivation and employee retention rates declined. Many workers started questioning whether their values aligned with those of the company, and the morale in the entire organization suffered.
Solution: To rebuild trust within the workplace and produce better business outcomes, the company needed a multi-layered approach:
- Transparent communication from leadership
Executives addressed the situation head-on with an open and honest company-wide statement. Leadership acknowledged mistakes and outlined certain steps to resolve the issue.
- Internal trust-building initiatives
Leadership held team meetings and Q&A sessions where employees could voice concerns and receive direct responses. The company introduced a dedicated internal ethics committee or ombudsman to provide employees with a channel for raising concerns.
- Empowering employees to be part of the solution
Employees had the opportunity to contribute ideas for ethical reforms and workplace improvements. They were also encouraged to join company projects that helped the community, thus feeling involved in the company’s commitment to making amends.
Results: Within months the workers’ trust was significantly restored due to open communication and straight approach to problematic topics. Employees saw leadership taking responsibility, fostering engagement and morale. The crisis became a catalyst for meaningful change, leaving the company on a stronger ethical foundation.
Tips for employee engagement: sabotage guide
If you’re looking to completely undermine employee engagement, here are some foolproof methods.
Task overload without support
Keep piling on tasks without providing resources or clear instructions. Watch your employees running around trying to make out what they should do next. Add some criticism and haste for stress levels to rise and productivity to plummet.
Micromanage everything
Show your team you don’t trust them by hovering over every task. Nothing kills motivation like feeling incapable of making even minor decisions. You can also constantly second-guess decisions and reverse their work, so they could go above and beyond to justify themselves.
Discourage work-life balance
Keep employees on their toes by staying mentally connected to work and checking their inbox after office time. You can do even better by encouraging them to work at the weekend or after hours.
Foster a toxic environment
Allow gossip, tolerate bullying, and avoid addressing conflicts. Job Seeker Nation Study shows that 66% of job seekers who experienced harassment or bullying would actively pursue a new job. If an employee speaks up about bullying, just brush it off.
Don’t demonstrate appreciation
Take credit for your team’s successes, and make sure their hard work goes unnoticed. Why praise them for their usual work duties? They get paid for it.
Play favorites
Reward the same people over and over, regardless of their actual performance. Let the others feel no matter how hard they try it doesn’t make any sense. If they aren’t easy to warm up to, who’s to blame?
Disclaimer: we’re just kidding.
How AI helps personalize the employee experience
Artificial intelligence allows companies to tailor the workflow to each employee, taking into account their preferences, skills, and work style. Let’s explore some ideas of using AI for employee engagement.
Engagement metrics and sentiment analysis
Artificial intelligence helps not only solicit employee feedback, but also analyze their emotional state and job satisfaction. Based on the collected data, AI can predict which employees are at risk of dismissal or burnout. This gives HR and managers the opportunity to take action in advance.
Smart scheduling and workload balancing
AI can help optimize work schedules and distribute workload fairly, preventing burnout and increasing productivity. This can be achieved by balancing tasks between team members based on their current workload and deadlines, avoiding situations where one employee may be overloaded while another has too little to do. AI can also suggest meeting times when everyone is most available, reducing wasted time and calendar overload.
How to ensure AI-driven engagement feels authentic
If you want AI technologies to improve employee engagement, it’s important to make their use natural, personalized, and human. Here are some ways to achieve this:
- AI communication should take into account individual preferences, such as speaking style, addressing the employee correctly, and discussing topics that concern them. Impersonal automated messages like “Great work!” can be annoying.
- AI can collect and analyze ideas for motivating employees, but the final communication should remain with real people. For example, gaining employee feedback can be delegated to AI, but discussing the results and conducting employee training is the manager’s job.
- Interactivity and feedback of AI tools should enable employees to participate in the process – for example, customizing interaction settings, providing feedback on system performance, and suggesting improvements.
To make AI introduction in your company feel safe and welcomed by your employees, check out our article about AI implementation.
Why AI should support, not replace, human interaction
AI can analyze employee moods, but it cannot truly empathize, support, and motivate in the same way people do. Words of encouragement from a colleague or manager are much more valuable than an automated message from a chatbot. Feeling connected with the team strengthens the sense of belonging. Lively, dynamic discussions in a friendly environment where employees feel heard lead to out-of-the-box thinking, creative solutions, and inspiration.
Conclusion
Employee engagement has always been an important factor for business success, but nowadays it has become critical. Some companies demonstrate ingenuity in shaping their organizational structure, emphasizing horizontal management or a strong ideological foundation. Nevertheless, research shows that the classic hierarchical approach still leads to higher levels of engagement.
There are a number of achievable ways to foster employee engagement. First, you need to take care of the basic comfort of your employees. This includes office amenities and working equipment running smoothly, confidence in the future and fair compensation for possible issues, feeling involved in the team and personal well-being.
To raise employee satisfaction and prevent burnout, you can use a number of techniques, which cover three crucial aspects—relationships and workplace culture, recognition and appreciation, and bonuses. It’s also important to track manifestations of poor team management which should be avoided at all costs.
AI can be an effective assistant in motivating staff. It can be used to provide personalized feedback, conduct surveys, and adjust the schedule. However, communication within the team should remain prior to AI communication.
Whatever management and motivation approach you choose, caring about employees’ well-being, listening to their needs, showing their value, and building mutual trust will help achieve higher engagement and build a culture of recognition.
