Employee engagement and recognition: A strategic tool for retention and productivity

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By R. Esi ASANTE (PhD)

The buzz for employee engagement globally with a request to find innovative ways of engaging employees present at work both emotionally and psychologically cannot be farfetched.

The connection between employee engagement and recognition is also undeniable. It has been backed by decades of research data and current Gallup reports also confirm it.

For some, recognition is valuable than any other form of motivation and this makes both employee engagement and recognition critical and an important component for organizational success.

This article examines employee engagement and recognition and how it has been used as a tool for employee retention and productivity.

All over the world, organisations are adopting employee engagement initiatives to enhance retention and productivity. The situation is not different for organisations in Ghana which are increasingly recognizing the importance of employee engagement for achieving business goals and fostering a positive work environment.

This is because employee disengagement is an issue that organizations can’t ignore. Abensur (2024) contends that aside lowering productivity, employee engagement can also have a significant impact on employee morale, profitability and turnover. “Disengaged employees’ negative emotions often affect their colleagues, creating a bad atmosphere that can, in the long run, drive the best talent away from the company”

Current trends in the workforce

Research on employee engagement in Ghana largely focused on specific industries, such as higher education, hospitality and tourism, or SMEs, and investigated the impact of leadership styles on employee engagement, with transformational leadership often being linked to higher engagement.

Other studies examined the relationship between employee engagement and various organizational outcomes, such as performance, turnover, and organizational commitment. Some of the studies suggest that employee engagement levels in Ghana vary across the various organisations (Adiasany, et al., 2024; Nkansah, et al., 2023; Frimpong, 2015)

Findings reveal disturbing trends of a higher number of disengaged employees compared to those who are actively engaged (Adiasany, et al., 2024). The consequences of employee engagement identified in the literature included job satisfaction, employee retention, organizational culture, and career development opportunities and organisational citizenship behaviours.

Challenges and barriers to engagement include poor management-union relationships, poor work environments, poor management practices, inadequate communication, limited career development opportunities, inadequate compensation, and a lack of recognition (Frimpong, 2015; Nkansah, et al., 2023)

Employee Engagement and Recognition

Employee engagement according to Gallup (2024) as the involvement and enthusiasm of employees in both their work and workplace. Highly engaged teams outperform the rest in business outcomes critical to the success of your organization. It is defined by Motivosity (2025) as the emotional and psychological commitment an employee has toward their work, team and company.

When employees are actively engaged, they are more likely to go above and beyond, they choose to stay with the company longer, they are more productive and innovative and contribute to a stronger company culture.

Therefore, employee engagement has everything to do with the thoughts and feelings of your employees about the company culture. When employees are motivated, they become loyal, connected and purposeful in contributing to the organization (Motivosity, 2025).

Gallup Statistics on employee engagement

Gallup 2024 Report on the global workplace note that global employee engagement percentages fell, from 23% to 21%, costing the world economy US$438 billion in lost productivity.

The primary causes being a drop in manager engagement from 30% to 27%, which affects team engagement and productivity, business performance and ultimately GDP growth.

This is because, 70% of team engagement is attributable to the manager (Gallup Report, 2024). Continuous decline in manager engagement affects productivity.

Abensur (2024) reviewing the Gallup Report noted that companies with highly engaged teams experience numerous benefits that directly impacted their bottom line such as 78% less absenteeism, up to 51% less turnover in low turnover organisations, 10%more customer loyalty and engagement, 17% greater productivity in sales, 23% greater profitability and 68% higher wellbeing.

The reports states that employee engagement in sub-Saharan Africa is relatively higher than the global average. In comparison, globally, 62% of employees are not engaged, and 15% are actively disengaged.

Engaged employees are not just more productive and loyal; they also contribute to a positive workplace culture where everyone supports and motivates each other to keep moving forward. This, in turn, fuels innovation and teamwork, driving positive business outcomes (Abensur, 2024).

Employee engagement remains a critical issue, with 62% of employees not engaged, often referred to as “quiet quitting,” and 15% actively disengaged, known as “loud quitting.” According to Gallup’s employee engagement data (2024), only 23% of employees are truly engaged in their work. These low engagement levels cost the global economy approximately US$8.9 trillion, i.e. 9% of global GDP.

Causes of Disengagement

Research shows that disengagement is largely caused by changes in the workforce such as generational differences which makes work look different in the current dispensation for different generations. For the Gen Zs, the digital world shape their identity and so through social media and online groups, they found subcultures to connect and interact with.

These internet group, are enthusiastic and energetic communities centered around a shared, common interest. Motivocity (2025) contend that the rise in remote and hybrid work environments has fundamentally changed the workplace.

The remote and hybrid workers don’t have forced proximity to create social connection and camaraderie. By 2025, about 22% of the workforce will work remotely with 28.2% working in a hybrid model. There is also an epidemic of loneliness and the U>S Surgeon General warned of loneliness and lack of community, declaring it an epidemic.

According to Motivosity (2025), the economic uncertainties and anxiety such as Layoff, budget constraints, fewer raises in nearly every industry, increased financial stressors for employees have resulted in employee disengagement.

Gallup’s report on the great detachment show that more employees are staying in jobs mainly because they are struggling to get a new job in the current job market. So they stay feeling stuck, disengaged, and unhappy.

According to Gallup (2024), 50% of the workforce is actively looking for new jobs. The Bank of America report that 67% of employees agree that the cost of living is outpacing growth in their salary or wages while PWC, report that 60% of employees are financially stressed.

Lack of clear expectations and employee burnout have also been attributed to worker disengagement.

46% of employees according to Gallup (2024). Don’t know what is expected of them anymore at the workplace, while 81% of Gen Z and nearly 3 out of 4 Millennials say they are burnt out at work (Moddle & Censuswide, 2025).

There is also lack of care and connection. Gallup (2024) reports that 61% of employees do not feel strongly that someone at work cares about them.

Building Engagement and Promoting Recognition

Companies are regularly seeking effective strategies to motivate and retain their workforce. Recognition programs have become a powerful tool, as a culture of appreciation to help boost employee morale, productivity, and loyalty (HRD Connect, 2024).

The value of recognition program is significant in the current uncertain economic climate and strong competition for talent. These initiatives go beyond simple acknowledgments; they are vital components of a comprehensive strategy to foster a committed workforce.

Organizations must engage and retain their workforce. Gen Z is now fully entering the job market, and millennials are stepping into leadership roles. Their expectations differ greatly from those of earlier generations.

This shift comes with the reminder that employee engagement affects productivity, innovation, and profits. Recent research by Gallup and Workhuman (2024) shows that employee recognition is a powerful but underused tool to fix this issue.

The study finds that strategic recognition is vital for business. It shapes culture, boosts engagement, and improves retention. It’s more than a morale boost (HRD Connect, 2024).

Recognition strengthens the workplace community, a critical factor in employee loyalty. When employees have a strong workplace community, they are eight times more likely to feel like they belong.

This sense of belonging translates to tangible outcomes: a 43% increase in retention and an 84% increase in estimated tenure or intent to stay (Dennison and Dennison, 2024; Forbes Advisor, (n/d).

Ensuring that every employee feels valued is key to a thriving workplace. The vital role of peer appreciation, community, and connectedness in the workplace can help achieve these goals.

Learn to embed company values into your culture, improve communication, and offer easy access to rewards. Track achievements and access detailed reports to enhance your company’s cultural health through awards, milestones, and social feeds.

Flickinger (n/d) explained three pillars of engagement, i.e. empowerment, enablement and connection. Leaders must put intentional focus and effort into developing each pillar to nurture a comprehensive culture of engagement.

Each pillar is defined by a multitude of attributes that allow the pillar to come to life within the organization. Best practices for increasing employee engagement from the Gallup Report recommend the need to define clear purposes, missions and values, clarify roles and responsibilities to create a sense of accountability, prioritize well-being and psychological safety in addition to flexible working hours, empowering managers to lead not micromanage and adopt governance models that bring structure to organisations (Abensur, 2024).

Gallup’s employee engagement data clearly shows that engagement is crucial for retention. So if organizations want to prevent their employees from leaving, they need to actively find ways to tackle disengagement with community, combat burnout with gratitude and introduce innovative recognition practices to ensure satisfaction.