is your team engaged? ...and why does it matter?

Puzzle Partners
Jul 17
4 min read

Updated: Sep 4

Staff engagement is a topic getting bounced around a lot at the moment. So much of what we do at Puzzle is all about a people-centred approach and making sure people are ready and confident to work in new ways or new spaces.

Here we are looking to examine the evidence that strong levels of engagement are not just a “fluffy” nice to have, but rather play a critical role in driving hard business metrics.

Within the article we cover:

How is engagement measured and what does it mean?
The relationship between engagement + performance?
What are the causes of low engagement?
What can be done to improve engagement?
Why is engagement critically important during times of transformational change?

how to measure engagement | gallup's Q12 research

One of the most authoritative pieces of research, Gallup’s Q12 measure, consists of 12 core statements that assess actionable workplace conditions influencing engagement. These items assess factors such as role clarity, access to resources, recognition, development, and relationships at work. An additional item measures overall satisfaction.

Without delving into a dissertation on statistics (those that want to can view the full report and methodology at https://www.gallup.com/workplace/321725/gallup-q12-meta-analysis-report.aspx?thank-you-report-form=1), Gallup uses meta-analysis to combine data from 736 studies across 347 organisations, covering over 3.3 million employees in 183,806 work units.

The relationship between engagement and performance at the business/work unit level is substantial and highly generalisable across organisations. Employee engagement is related to each of the 11 performance outcomes measured in the research to describe the relationship between level of engagement and performance.

the relationship between engagement + performance

In comparing business units with the lowest levels of engagement versus those with the highest (lower quartile versus the upper quartile) the following insights emerged:

Across a broad range of measures, there is a very clear correlation between better business outcomes and the level of staff engagement.

what are the major causes of low levels of engagement?

Lack of Role Clarity | Employees who don’t clearly understand what is expected of them struggle to stay engaged. Ambiguity in responsibilities leads to confusion and frustration.
Insufficient Resources | When employees lack the materials and equipment needed to do their jobs effectively, it signals a lack of support and undermines their ability to perform.
Misalignment with Strengths | Engagement drops when employees are not given opportunities to do what they do best.
Lack of Recognition | Employees need regular, meaningful recognition for their contributions. Without it, they may feel undervalued and disconnected from their work.
Poor Manager Relationships | Feeling uncared for or unsupported by supervisors is a major disengagement driver. Employees thrive when they feel seen and valued as individuals.
Limited Development Opportunities | A lack of encouragement and support for personal and professional growth can lead to stagnation and disengagement.
Ignored Opinions | When employees feel their input is disregarded, it diminishes their sense of ownership and belonging, reducing motivation and initiative.
Weak Connection to Purpose | Engagement suffers when employees don’t see how their work contributes to the organisation’s mission or broader impact.
Low Team Commitment to Quality | Working in teams where peers are not committed to excellence can demoralise high-performing individuals and reduce overall engagement.
Lack of Social Connection | Having close relationships at work, such as a best friend, is strongly linked to engagement. Isolation or poor team dynamics can erode morale.
Absence of Feedback and Progress Discussions | Without regular conversations about performance and growth, employees may feel directionless and unsupported.
Few Learning and Growth Opportunities | Engagement is fuelled by continuous learning. A lack of development pathways can make work feel repetitive and uninspiring.

what can be done to increase levels of engagement?

The CIPD’s “Employee Engagement: An Evidence Review” identifies the key drivers of engagement, based on a rigorous review of academic and practitioner research.

why is engagement critically important during times of transformational change?

Staff engagement becomes especially critical during workplace transformational change—such as restructuring, digital transformation, mergers, or shifts to hybrid work—for several key reasons:

1. Engaged Employees Are More Resilient

Change often brings uncertainty, stress, and disruption
Engaged employees are more emotionally invested and better equipped to adapt positively
They are more likely to see change as an opportunity rather than a threat

2. Engagement Drives Change Adoption

Transformation efforts often fail due to resistance or lack of buy-in
Engaged employees are more likely to; embrace new systems or processes, champion change among peers, and provide constructive feedback to improve implementation

3. Engagement Sustains Performance During Disruption

During change, productivity can dip due to confusion or morale issues
Engaged teams maintain higher levels of focus, collaboration, and output, even amid uncertainty

4. Engagement Reduces Turnover Risk

Change can trigger fear and job insecurity, leading to attrition
Engaged employees are more likely to stay and help shape the future
This is especially important when retaining institutional knowledge is critical

5. Engagement Enhances Communication and Trust

Transparent, two-way communication is essential during change
Engaged employees are more likely to: trust leadership, participate in feedback loops, help spread accurate information

6. Engagement Supports Wellbeing

Change can strain mental health and increase burnout risk
Engaged employees report higher levels of wellbeing, purpose, and support, which buffers against stress

7. Engagement Fuels Innovation

Transformational change often requires creative problem-solving
Engaged employees are more likely to contribute ideas, experiment, and take initiative

summary

In today’s dynamic and often unpredictable work environment, employee engagement is not a luxury - it’s a strategic imperative. As the evidence clearly shows, engaged teams drive stronger performance, greater wellbeing, and more resilient responses to change.

Whether you're navigating transformation, striving for growth, or simply aiming to build a thriving culture, investing in engagement is investing in your people - and ultimately, your success. The challenge now is not whether engagement matters, but how intentionally and consistently we act to foster it.