In today’s ever-changing business world, it can be hard to know how to increase employee engagement. But if you want your organization to succeed, keeping engagement high is essential.
When employee engagement increases, companies experience an 81% decrease in employee absenteeism.
Companies with engaged workforces are also 21% more profitable and have 17% higher productivity.
And 71% of executives feel that employee engagement is a huge contributor to success.
The stat that stood out to me the most, though, was this: US companies lose between $450-550 billion per year because of disengaged employees. Just one disengaged employee could cost a company $3,400 in lost productivity for every $10,000 of salary.
So whatever your company goals are, employee engagement still matters. And you don’t have to spend a fortune to keep it strong.
Here’s part 1 of how to increase employee engagement on a budget in 2026. Keep an eye out for part 2 next week!
Update your onboarding
Your onboarding is the foundation on which your entire employee relationship is built. If it’s messy or disorganized, employees will associate those traits with the rest of your business, too. They’ll also be more likely to leave, forcing you to go through the costly hiring process again.
While tools can help you organize your onboarding process, you also need to periodically review it.
No matter how great your onboarding was when you put it together, it doesn’t take much for things to become out of date. It could be that the company values have changed, leaders have moved on, or society at large has shifted.
If you have a formal process that includes guides for employees to read, make a note to review them at least once a year.
If someone leaves, try to update their details as soon as their replacement is hired to keep it fresh. This will also show your new hires your company’s attention to detail.
Out-of-date information makes you look slow and behind the times. No business wants those traits associated with it.
Also in your onboarding process, introduce employees to their colleagues.
There’s nothing worse than being the new kid, needing something from a colleague you’ve never spoken to before, and getting ghosted because they don’t care about your deadline.
If that person has already spoken to you, they’re more likely to care and therefore more likely to respond when you need them to.
Those little interactions before you need something go a long way to improving employee communication. They’re also important to factor in when you’re thinking about how to increase employee engagement.
Update — or create — your policies
As well as keeping your onboarding up to date, you need to keep your policies up to date, too. If you don’t have any yet, it’s far better to create them before you need them than have to scramble to create something because suddenly you do need it.
Things like:
- Sick pay/benefits
- Maternity leave
- Paternity leave
- Bereavement leave
- Death in service
The more of these you cover now, the more protected your business — and your employees — will be if the unexpected happens. Knowing everyone is taken care of in this way is important for how to increase employee engagement as well.
Plus, with the advent of AI to help you put these policies together, there really is no excuse to not have them in place if you have more than a couple of employees.
Act as a mediator
A leader’s job should be to mediate any conflicts before they spiral. That requires them to keep their own emotions in check and read other people’s.
It doesn’t take much to start finger-pointing when there’s a disagreement, or for things to escalate unnecessarily. The right leader can prevent things from escalating by interpreting what people really feel and what the best course of action is.
There’s no need for anyone to be rude to each other just because they disagree on something.
Managers also need to lead by example here, by remaining calm and keeping their emotions in check when they disagree with someone.
Not only does this make for a calmer, more welcoming work environment, it also means employees with conditions like PTSD or C-PTSD are less likely to be triggered in the workplace.
These conditions can happen because of workplace stress, bullying, or pressure. So be sure you’re mindful of that and remember that your actions have consequences. This is key when it comes to how to increase employee engagement.
Train your managers on people management, not just technical skills
More than half of managers never receive any formal management training. It’s no wonder some people are so bad at it.
Whether it’s micromanagement, workplace bullying, saying something offensive, making the atmosphere unwelcoming, not answering questions, or something else, a manager’s attitude has a huge impact on an employee’s ability to do their job.
That’s why training them is so important.
Soft skills like communication and empathy don’t always come naturally, and it’s really easy to fall into bad habits with them or take them for granted. We’ve all done it when we’re busy or stressed.
Management training can help managers spot these signs before they have a ripple effect that damages employee wellbeing and company productivity. Both of which are central to how to increase employee engagement.
Don’t shy from negative or uncomfortable topics
Why is society so afraid of negative emotions?
Bottling up emotions like anger leads to more issues, at work, at home, and in our heads.
Expressing anger in a healthy, constructive way (like poetry, or dance, or even just mindful walking) is freeing.
If a colleague has annoyed you, sit with it. Don’t impulsively take it out on someone else. Ask yourself why you’re annoyed. Is it something they did, or did they push a button from your past?
While being “triggered” is starting to feel like an overused concept, it is a thing. We all have our triggers, and it’s important to understand what ours are so that we don’t take them out on other people. Especially when we’re in positions of power.
A little self-analysis goes a long way when it comes to how to increase employee engagement. It’s a step people rarely take, though.
Do something about workplace bullying
Workplace bullies often get away with their bad behavior because they’re good at one element of their job, or they hold a lot of power so no one will speak up against them.
But acting like they don’t exist and no one has ever been bullied in your organization has consequences.
I was bullied at work and stayed silent for years.
Even now, I still struggle in work environments and with managers because I assume that they’re going to be controlling, not trust my judgement, and micromanage me.
When actually, I excelled when I had a manager who listened to me and trusted my judgement. We trusted each other’s feedback and showed each other empathy and compassion. But her type of leadership is sadly too rare.
Don’t ruin someone’s life because you’re too afraid to stand up to a bully. Brushing it under the rug doesn’t do anyone any good. And it certainly doesn’t help you when it comes to how to increase employee engagement.
Conclusion
When you think about how to increase employee engagement, it doesn’t require a huge budget. Instead, it requires an understanding of your people and what they need from you. All that takes is a little listening — and acting on what you discover.
To ensure your employees can access what they need, and to find out what they really think, try Workrowd. Get in touch to book your free demo today.
Stay tuned for part 2 next week!
