Keeping employees engaged happy and productive.

Employee engagement is vital to business success. Engaged employees are more productive, and engagement is linked to overall organisational performance and profitability. When employees feel supported and engaged, they are more likely to stay committed, contribute ideas, and perform at higher levels.

A new research report from Howden Employee Benefits, ‘Employee Benefits and Wellbeing in Scotland’ reveals key trends in employee benefits and engagement, offering employers practical tips to keep their workforce engaged, happy, and productive.

The importance of employee engagement

Gallup’s 2024 ‘State of the Global Workplace’ report  found that only 10 per cent of UK employees are engaged in their roles. Yet studies show that organisations with highly engaged employees experience a 23 per cent increase in profitability and a 78 per cent drop in absenteeism . 

Offering employee benefits and wellbeing support aligned to needs can play a key role in engaging and motivating staff. However, Howden’s research found that 17 per cent of employers expressed doubts about the effectiveness of their company’s benefits and wellbeing initiatives and 37 per cent felt that communication about these benefits needed improvement. 

This indicates that while many companies are investing in employee support and benefits, they are often falling short in effectively conveying the value of these offerings to their employees.

What are the challenges?

Hybrid and remote work have introduced new challenges for maintaining engagement. Employers need to adapt while also keeping employees happy and motivated. According to research, 68 per cent of employers offer hybrid working, yet 27 per cent anticipate changing their policies within the next year, with a move toward increased in office attendance. 

While hybrid working was essential during the pandemic, businesses are now grappling with how to maintain engagement and productivity with a remote and dispersed workforce. Hybrid work offers flexibility, but it also makes it harder to maintain a unified company culture.

Businesses with strong, well-defined cultures tend to have significantly higher levels of employee engagement than those with weaker cultures. A robust culture does not just keep employees engaged; it can also be a competitive advantage, helping to attract and retain top talent.

Communication is another challenge. Often benefits packages are complex, and their value not always communicated well. Even when companies invest in a variety of benefits, employees may not fully understand them or know how to access them. Therefore, communication around benefits must be ongoing, not limited to on boarding or annual reviews.

Steps employers can take to improve engagement.

1. Create a culture of engagement

Understanding what employees need to feel happy, healthy, and motivated is key. This could include recognition programmes, career development opportunities, or initiatives promoting diversity and inclusion. Employers should focus on the areas that matter most to their employees to create a positive, engaging environment.

2. Improve communications

Regular communication about benefits is essential. Ensure that employees are well informed about the available benefits and know how to access them when needed. Don’t let benefits become your organisation’s “best-kept secret.” Consistent reminders and clear messaging can significantly increase benefit usage and employee satisfaction.

3. Build engagement through wellbeing

Supporting mental health and wellbeing is no longer a nice to have, it is essential. Wellbeing initiatives must be woven into the fabric of the company’s culture rather than treated as isolated, once-a-year events. Employers can offer programmes such as financial education workshops, access to counselling services, or initiatives that encourage a healthier work-life balance. When employees feel genuinely cared for, they are much more likely to stay engaged and committed.

4. Tie initiatives to awareness Days

Aligning initiatives with national awareness days, such as Mental Health Awareness Day or Financial Wellbeing Week, can increase engagement and provide timely reminders of the resources available to employees. These events offer great opportunities to highlight important issues and reinforce company support when employees may need it most.

Conclusion

Engagement, culture, and wellbeing are key factors in keeping employees happy, especially in a hybrid work environment. To build a strong, engaged workforce, employers must focus on what truly matters to their employees and communicate effectively. A clear, consistent message about available support and benefits is the foundation to creating a motivated, productive, and loyal workforce.

Howden has a dedicated employee benefits team in Scotland and can help employers in Scotland design bespoke health and wellbeing strategies aligned to meet the needs of their individual business, employees, and budget. For more information and to download a copy of the research click here.