Why Employer Engagement is the New Competitive Advantage

Why Employer Engagement is the New Competitive Advantage

In today’s competitive job market, employers are always looking for ways to differentiate themselves from their competitors. In such a scenario, employer engagement has emerged as a new competitive advantage.

Employee engagement refers to the level of commitment and emotional connection that workers have with their employers, and it has a direct impact on productivity and business performance. Companies that can engage their employees are likely to have higher retention rates and be more successful overall.

In this article, we explore why employer engagement is the new competitive advantage and how employers can use it to improve their business outcomes.

Higher Retention Rates

Studies have shown that employees in companies that facilitate employee engagement are more likely to stick with their current employer. This is because engagement creates a sense of loyalty and commitment to the company and its mission, which in turn makes employees feel more fulfilled in their roles.

Further, engaged employees are also more likely to recommend their employer to others. Terryberry engagement survey reports that 67% of employees who are engaged at work are more likely to recommend their company to others. This not only helps with recruitment but also builds the company’s reputation and brand image.

Increased Productivity

Engaged employees are more committed to their work and are more likely to put in extra effort to achieve their goals. According to research, businesses with high employee engagement are more productive than those with low engagement levels.

Engagement surveys have found that companies with engaged employees experience 22% higher profitability and 21% higher productivity. It’s no wonder then that employers are turning to engagement strategies to improve their bottom line.

Improved Customer Satisfaction

Higher engagement levels enable employees to understand their customers’ needs and deliver personalized solutions. This can lead to increased customer satisfaction, which is critical for long-term business success.

According to several engagement surveys, organizations can achieve customer satisfaction rates that are 10% higher by having engaged employees who understand customers’ needs. Engaged employees tend to provide better customer service.

Stronger Brand Image

Companies with high employee engagement levels often have a more positive image and are seen as desirable employers. The media, customers, and potential employees view them more favorably. Focusing on creating an engaged workforce can help employers attract better talent.

Terryberry engagement survey reports that 85% of employees who are engaged are satisfied with their jobs, and 70% feel they have a good work-life balance. Employers that focus on engagement are, therefore, likely to attract more candidates, enhance their reputation, and gain a competitive edge in the industry.

Attracting Top Talent

Employee engagement is also more likely to attract top talent. In today’s job market, job seekers are looking for more than just a paycheck. They want to work for companies that care about their well-being, development, and progression. Employers that prioritize employee engagement are more likely to attract and retain top talent.

Higher ROI

Investing in engagement programs yields significant returns on investment (ROI). When employees are engaged, they tend to work harder and stay with the company for longer periods, reducing hiring and training costs.

Engagement surveys show that businesses with high engagement levels generate 26% higher revenue per employee than businesses with low engagement levels. As such, the ROI from employee engagement programs can be substantial and long-lasting.

Stay Ahead of Competition

Finally, employer engagement is essential for companies that want to stay ahead of the competition. As companies become more focused on this, those that do not may find themselves left behind. Companies that can attract and retain top talent, maintain high levels of productivity, and provide exceptional customer service are more likely to succeed over the long-term.


In today’s hyper-competitive job market, employer engagement has become the new competitive advantage. Employers that build a highly engaged workforce are likely to experience higher productivity, increased customer satisfaction, and a more positive brand image. Engaged employees are more loyal and more likely to recommend their employer to other people. This builds the company’s reputation and helps attract quality candidates. Investing in employee engagement programs is a proven way to increase ROI, reduce employee turnover, and boost profitability. In conclusion, if you want to succeed in today’s business environment, concentrate your efforts on building an engaged workforce.

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