Employee disengagement is a billion-dollar problem. Studies show that disengaged employees cost companies $8.8 trillion globally in lost productivity each year, amounting to 9% of global GDP. Beyond the numbers, a disengaged workforce leads to higher turnover, lower innovation, and missed opportunities for growth.
But employee engagement is more than just boosting morale or job satisfaction. It’s about unlocking better—better collaboration, better ideas, and better business outcomes. When employees feel heard, valued, and empowered to contribute, they don’t just show up to work—they actively drive change.
This principle is echoed by business leaders like Richard Branson, who famously said, “Take care of your employees, and they’ll take care of your business.”
It’s a simple truth: when you invest in your people, they invest in your company.
In this article, we’ll explore the best ways to empower your employees through innovation, leveraging technology and structured idea management to foster a culture of continuous improvement and ultimately build a more engaged, high-performing workforce.
Why Employee Engagement Is Important
Engaged employees are more productive, innovative, and committed, driving better business outcomes across the board. They collaborate more effectively, contribute fresh ideas, and stay with companies longer, reducing costly turnover.
On the flip side, disengagement leads to lower performance, higher absenteeism, and lost revenue.
In short, here are seven key benefits of employee engagement:
- Increased profitability
- Higher productivity
- Lower absenteeism
- Reduced turnover
- Enhanced customer satisfaction
- Improved employee well-being
- Stronger company loyalty
Learn more: 15 Creative Employee Innovation Strategies to Spark Ideas with Your Team
The State of Employee Engagement: Key Stats & Insights
So yes, now you can see how employee engagement (or lack thereof) directly impacts productivity, profitability, and retention.
Here’s a look at the numbers:
- 85% of employees worldwide are not engaged or actively disengaged (Gallup, 2017).
- Only 33% of U.S. employees are engaged (Gallup, 2023).
- Low engagement costs the U.S. $450–550 billion annually (Gallup, 2013).
- High engagement increases profitability by 21% (Gallup, ongoing).
- Engaged employees are 59% less likely to leave (Gallup, ongoing).
- Engaged employees take 41% fewer sick days (Gallup, 2015).
- Engagement drives productivity: Highly engaged employees are 17% more productive (Gallup, ongoing).
- Engaged employees lead to a 10% increase in customer ratings (Gallup, ongoing).
- 80% of executives see engagement as essential (Harvard Business Review, 2021).
- Employees in purpose-driven companies have 90% higher motivation and loyalty (Porter Novelli, 2020).
9 Ways Innovation Can Improve Employee Engagement
1. Foster a Culture of Continuous Improvement Through Innovation
Companies with highly engaged employees are 21% more profitable than those with disengaged teams, according to Gallup. That’s because engaged employees are looking for ways to improve processes, solve problems, and drive meaningful change.
But fostering this mindset requires more than open-door policies and occasional brainstorming sessions. Employees need to see that their ideas are valued and acted upon.
A structured innovation management platform helps capture employee ideas, evaluate them, and implement real solutions that drive the company forward. When employees see their suggestions leading to real improvements, engagement naturally follows.
Learn more: How Employee Driven Innovation Programs Can Transform Your Business in 2025
2. Give Employees a Voice Through Idea Management
Nothing kills engagement faster than feeling unheard.
Employees who believe their opinions don’t matter are four times more likely to feel disengaged. Yet, many organizations still rely on outdated suggestion boxes or annual surveys. For that, leaders should create open channels for feedback.
Innovation management platforms provide structured, transparent ways for employees to contribute ideas and see their impact. Real engagement comes from ongoing, two-way dialogue, where employees not only share insights but see real change happen as a result.
3. Break Down Silos with Collaborative Innovation
When teams work in silos, knowledge gets trapped, opportunities are missed, and engagement suffers. Employees who collaborate across departments are 60% more engaged than those who work in isolation.
Yet many organizations struggle to create a seamless flow of ideas between teams.
Collaboration isn’t just about communication. It’s about making it easy for employees to connect, share insights, and solve challenges together.
An innovation platform allows employees to contribute across teams, breaking down silos by fostering cross-functional collaboration. When you give employees access to shared challenges, they can work together to develop solutions that benefit the whole company.
4. Recognize and Reward Contributions to Innovation
People want to know their work matters. Employees who feel recognized are twice as likely to be engaged, yet too often, contributions—especially those outside of core responsibilities—go unnoticed.
And by implementing an innovation program with built-in recognition, organizations can highlight employee contributions to new ideas and improvements. Whether through internal competitions, rewards, or leadership acknowledgments, making innovation a visible and valued part of the workplace enhances engagement.
Learn more: Appreciating Employee Success With Innovation Awards
5. Align Work with Purpose Through Innovation Challenges
Engagement is also about feeling connected to something bigger. In purpose-driven workplaces, employees are more committed, more creative, and more willing to go the extra mile.
In fact, 70% of employees say they define their sense of purpose through work.
Innovation programs allow employees to directly contribute to company-wide goals through structured challenges. Align these challenges with the company’s mission so that employees can see how their contributions make a real impact, fostering a sense of purpose in their work.
6. Encourage Learning and Growth with Innovation Opportunities
Employees stay engaged when they feel they’re growing—not just in their roles but also in their knowledge and careers. By the figure, 94% of employees say they would stay longer at a company that invests in their learning and development.
Encouraging participation in innovation projects, mentorship programs, and knowledge-sharing sessions ensures employees are constantly learning. Providing access to innovation tools and methods helps them expand their skill sets while contributing to business success.
7. Make Decision-Making More Inclusive with Crowdsourced Ideas
People are more engaged when they have a say in the decisions that affect their work. Yet, in many organizations, strategy and decision-making remain top-down processes.
Businesses that foster inclusive decision-making are 60% more likely to outperform their competitors.
Crowdsourcing innovation allows employees at all levels to contribute ideas and take part in decision-making. When employees see their input shaping company strategies, they feel more connected to the business and its success.
Read more: 7 Famous Crowdsourcing Examples That Achieved Remarkable Outcomes
8. Support Work-Life Balance with Innovation in Workplace Flexibility
Burnout is one of the biggest motivational killers. Employees with a good work-life balance are 21% more productive and significantly less likely to leave their jobs.
Innovation in work processes—such as AI-powered scheduling, remote collaboration tools, and automation—can make work more efficient, reducing stress and improving engagement. Alas, supporting employee well-being through smart work innovations ensures they stay motivated and productive.
9. Leverage Innovation Platforms to Sustain Engagement
Of course, employee engagement is far from a one-and-done initiative—it needs to be nurtured continuously.
Yet many companies still rely on outdated methods, treating engagement like an occasional check-in rather than an ongoing priority. But in our ever-evolving workplace, technology isn’t a nice-to-have—it’s imperative.
innosabi turns engagement into a scalable, trackable process, making it easy to collect ideas, foster collaboration, and measure impact. And by embedding engagement into everyday workflows, it ensures that improvement becomes second nature.
In a world where better is always possible, having the right tools makes all the difference.
The Employee Engagement & Innovation Checklist
Ready to boost morale in your business? Use this checklist to assess where your organization stands:
✔ Use an innovation platform to collect and evaluate employee ideas.
✔ Align innovation challenges with company goals.
✔ Break down silos with cross-team collaboration.
✔ Recognize and reward employee contributions to innovation.
✔ Support employee learning through innovation initiatives.
✔ Make engagement an ongoing, trackable process.
At the end of the day, when companies make innovation a priority, they don’t just see happier employees—they see better ideas, stronger teams, and lasting business success.
Engagement is the Foundation of Better Business
So ask yourself: What kind of company do you want to build?
Because engagement doesn’t happen by accident. It’s built through everyday actions—listening to your employees, recognizing their efforts, and giving them the tools and trust to make an impact.
And when your employees feel valued, heard, and empowered, they don’t just do their jobs—they take ownership, contribute ideas, and help drive real results.
So, where do you start? With action. Remember: the best companies don’t wait for engagement to happen—they make it happen.