How I Discovered the Incredible Power of Employee Engagement | Entrepreneur

Opinions expressed by Entrepreneur contributors are their own.

In 2024, Gallup reported that low employee engagement is costing U.S. companies an estimated $1.9 trillion in lost productivity. The message is clear: How you engage your team isn’t just about morale — it’s about performance, retention and long-term growth.

Early in my career, I didn’t think much about employee engagement. To be honest, I didn’t expect much from my employers either. My mindset was simple: Work hard, deliver results, get paid, get promoted. That was the implicit contract. Time and effort in exchange for money and power. It was the 1990s, and that was considered normal, especially in the world of enterprise software sales.

There’s a famous line from Mad Men where Don Draper responds to a subordinate’s request for appreciation with: “That’s what the money is for.” It captures a certain mindset of leadership — results over relationships, control over connection.

I lived that mindset for years.

But over time, as I rose through the ranks and led larger teams, I started to notice something: I was no longer motivated just by money. During my years at Citrix, the motto, per our CEO Mark Templeton, became: “Work hard, play hard, get results and have fun doing it.” I wanted to enjoy the work, learn something new, feel valued and laugh with my teammates. And even though I always gave 100% — even when those things were missing — I began to realize that not everyone is wired the same. Nor should they be.

The turning point

My first CEO role at getAbstract was a game changer. Suddenly, I was responsible not just for outcomes, but for culture. We sold a product that gave companies access to over 14,000 curated business book summaries, including the best thinking on leadership and organizational effectiveness. People like Simon Sinek, Lisa McLeod, Ken Blanchard, Mark Miller, Stephen M.R. Covey and many more have become regular voices in our work and conversations.

In addition, our clients, mostly (offices of the) CHROs at large corporations, put our solution to work inside their incredible organizations. Being surrounded by amazing content, customers, cultures and colleagues becomes my version of an advanced study in human behavior at work.

Through this, something clicked: The best leaders don’t just lead for results; they lead with purpose, meaning and service.

I became intellectually curious. I began testing what I was learning — leading with gratitude, aligning around purpose, creating space for constructive feedback and growth. And the results? Employees showed up with more passion. Customers noticed the energy. Sales grew. Profit followed.

What started as theory turned into practice. Practice turned into belief. Belief turned into who I am as a leader.

Engagement is a business strategy

Too many leaders still think of engagement as a “nice-to-have” — a soft skill or HR metric that doesn’t directly connect to the bottom line. I know because I used to be one of them.

But here’s what I’ve learned: Engagement is not fluff. It’s a strategic lever for business growth.

When employees feel seen, heard, challenged and appreciated, they bring what I call discretionary effort — that extra energy and initiative that can’t be bought, only inspired. And when you create value beyond salary — through recognition, purpose, learning and belonging — people aren’t constantly looking elsewhere for more. Another way to think about it: Engagement is what makes people actually look forward to Monday.

As MD Rafi, founder and CEO of Bison Life, told me in an interview: “We started treating culture like a product — something to design, build and iterate. It was no longer about keeping people happy. It was about helping them grow, take ownership and feel essential to the mission.”

Engaged teams innovate more. They sell more. They stay longer. They attract great talent. They treat the company like an owner would. It’s not just the right thing to do; it’s the smart thing to do.

Investing in career development isn’t just good for morale — it’s a measurable business advantage. A 2025 report from LinkedIn Learning found that companies with strong internal mobility and growth programs experience higher engagement, more internal promotions and stronger leadership pipelines. With 88% of organizations now citing retention as a critical concern, supporting employee development has become a top priority for leaders who want to keep their best people.

The flywheel of authentic leadership

Today, my team and I coach leaders through this same evolution. At first, we help them see that engagement is a driver of performance. Then I encourage them to try it — lead with more purpose, invest in their people and build a culture of meaning. They often see an immediate lift. People respond.

And then something wonderful happens: They start to like the way it makes them feel; good! Not just the business results, but the energy, connection and personal fulfillment that come from leading well.

What began as an experiment becomes a habit. A new leadership style emerges — one that’s not just effective but authentic. And that authenticity creates a flywheel of trust, passion and performance. We see this all the time at great companies we work with.

Restaurant Brands International (RBI), the parent company of Burger King, Tim Hortons, Popeyes and Firehouse Subs, prioritizes a culture that cares for its team members so it can translate into great customer experiences and business performance. Jeff Housman, RBI’s Chief People & Services Officer, emphasizes this connection: “Our culture is built around hard-working, good people who care deeply about each other and the guests we serve. When our team members feel supported and valued, they bring that same care to every customer interaction, creating a cycle of positivity that drives our success.”

Freeman, one of the world’s leading live event and brand experience companies, exemplifies this approach. Recognized twice as a Top Workplaces USA winner in 2024 and 2025 among large employers, Freeman’s commitment to embedding purpose and innovation into its culture has earned it multiple awards, including honors for Leadership, Work-Life Flexibility and Purpose & Values.

Chair of the Board Carrie Freeman Parsons captures this ethos, stating, “It has been my lifelong experience that events connect people in ways that leave them more inspired, better informed and better prepared for what lies ahead.” This values-driven model has been widely recognized as a catalyst for employee engagement and long-term retention — demonstrating how purpose, when embedded into daily operations, can shape a resilient and motivated workforce.

If you’re a leader who’s still stuck in the old mindset — if you’re thinking, “That’s what the money is for” — I encourage you to try something new. Lead with purpose. Start with why. See how people respond. Watch what happens to your culture, your customers and your company.

You might be surprised by how great it feels. And even more surprised by the results.

Source link