The Connection Between Employee Engagement and Business Performance

By Kraig Kleeman
Founder & CEO, The New Workforce

There’s a hard truth many leaders don’t like to hear: You can’t drive exceptional business performance without exceptional employee engagement. I’ve seen this truth unfold time and time again—whether scaling a tech company from zero to $30 million in under four years, or now, leading The New Workforce as we surge forward with triple-digit growth quarter over quarter.

In today’s world of remote work, AI disruption, and constant evolution, it’s easy to get distracted by shiny new strategies. But here’s the reality: your people are still your biggest asset. Engagement isn’t a nice-to-have. It’s a performance multiplier. And when done right, it’s the difference between a company that survives and one that thrives.

Let’s break down exactly how—and why—employee engagement fuels business performance, and more importantly, how you can harness this connection to scale results with rocket-fueled momentum.

What Exactly Is Employee Engagement?

Let’s clear the air. Engagement isn’t about happy hours or having a cool office space. It’s not about offering perks that look good on paper but fall flat in practice.

Employee engagement is about emotional commitment. It’s when people care—not just about their tasks, but about the company, its mission, and their role in its success. Engaged employees don’t just clock in and out. They think, create, innovate, and own outcomes.

When people feel connected to their work, respected by their leaders, and energized by a shared purpose, their output changes. Their quality goes up. Their resilience strengthens. And guess what? So does your bottom line.

Engagement Drives Productivity

Let’s start with the obvious: Engaged employees are more productive. But this isn’t just anecdotal—it’s measurable. When individuals feel valued, challenged, and aligned with the mission, they bring more energy and focus to their work. They’re not just doing tasks; they’re driving outcomes.

At The New Workforce, we’ve created an environment where every team member understands how their efforts ladder up to broader company goals. That sense of ownership supercharges performance. When people are personally invested, productivity is no longer enforced—it’s embodied.

Engagement Improves Retention

High turnover is one of the most expensive problems a business can face. And too often, it’s treated like a recruiting issue instead of what it really is: an engagement issue.

Engaged employees don’t leave at the first sign of adversity. They stay, because they believe in the vision and feel that their contributions matter. They’re more resilient through change and more loyal in the face of market uncertainty.

Building engagement into your culture means you’re not just hiring for roles—you’re building a tribe. A team that doesn’t just fill seats, but fuels momentum.

Engagement Enhances Customer Experience

Here’s a powerful equation: Happy employees equal happy customers.

When your team is engaged, it shows up in how they treat your clients. They go the extra mile. They bring passion to every interaction. And that energy is contagious.

Whether it’s a sales call, a support ticket, or a deliverable, customers can feel when someone genuinely cares. And that care becomes a competitive advantage.

At The New Workforce, we see this every day. Our people are fired up about what we’re building—and our clients feel that energy. It leads to better service, deeper relationships, and repeat business.

Engagement Fuels Innovation

Disengaged teams don’t innovate. They execute the playbook and follow the script.

But engaged teams? They rewrite the playbook. They’re not afraid to challenge assumptions, take risks, and explore bold new solutions. Why? Because they care deeply about making things better—and they feel safe enough to try.

Innovation doesn’t live in perfection. It lives in engaged curiosity. When your people feel trusted, valued, and supported, they start offering ideas instead of just asking for instructions.

This is the culture we’ve built at The New Workforce—and it’s a major reason behind our rapid growth. Innovation doesn’t come from a genius in a corner office. It comes from a team that’s fully bought in and switched on.

Engagement Aligns Everyone Around Purpose

One of the most overlooked drivers of performance is alignment. When every department, team, and individual understands and believes in the bigger mission, you eliminate friction and accelerate execution.

But alignment doesn’t happen through memos or mission statements alone. It’s built through consistent engagement—through open communication, recognition, and reinforcement of the “why” behind the work.

Engaged employees aren’t just aware of the company’s goals—they’re committed to achieving them. That’s how you turn strategy into action and ideas into outcomes.

How to Strengthen the Engagement-Performance Connection

Now that we’ve established the link between engagement and performance, let’s talk about how to cultivate it. Here are key principles I’ve applied in every high-growth business I’ve led:

1. Lead With Vision and Vulnerability
A vision without connection is just noise. As a leader, it’s not enough to set ambitious goals—you need to rally your team around them. That means communicating with clarity, sharing personal stories, and being transparent about challenges.

People engage when they believe. And they believe when their leaders are real.

2. Build a Culture of Trust
Trust is the foundation of engagement. Without it, you’ll never unlock your team’s full potential. Empower your people with autonomy. Show them that you trust their judgment. And when mistakes happen, treat them as learning opportunities, not liabilities.

In my experience, when people feel safe, they stop playing small. They bring their best ideas forward—and that changes everything.

3. Recognize and Reward the Right Things
If you want to fuel performance, recognize the behaviors that drive it. Don’t just reward outcomes—celebrate the effort, collaboration, and creativity that get you there.

Make recognition a daily ritual, not an annual review. A shout-out in a meeting, a personalized note, a moment of spotlight—it all adds up. And it builds a culture where people feel appreciated and motivated to go further.

4. Listen—and Act
Employee surveys are only valuable if they lead to action. Engagement is a dialogue, not a broadcast. Ask your team what they need, what’s working, and where you’re falling short. Then act on it—decisively and visibly.

Nothing disengages a team faster than feeling ignored. But when they see real change based on their input, trust deepens. And with trust comes energy, commitment, and drive.

5. Make Growth a Priority
If you want your company to grow, help your people grow. That’s the deal.

Invest in training. Promote from within. Create clear pathways for development. When employees see a future with you, they’re far more likely to invest their talents in your present.

At The New Workforce, we’ve embedded growth into our DNA. It’s not just good for morale—it’s a strategic advantage.

Final Thoughts

Employee engagement isn’t fluff. It’s not a feel-good side project. It’s a business imperative. A high-performing team isn’t built on talent alone—it’s built on belief, commitment, and a shared fire to achieve something meaningful.

When your people are engaged, your company doesn’t just move faster—it moves smarter, with more heart and more impact. Revenue grows. Innovation accelerates. Culture becomes your moat.

So don’t wait for a retention crisis or a productivity slump to start caring. Prioritize engagement now—authentically, consistently, and boldly. Because when your people are all in, the results speak for themselves.

Let’s build companies where performance is driven not by pressure, but by passion. Where results aren’t just achieved—they’re earned by teams who are deeply, unapologetically engaged in the mission.

That’s how real business performance is built. From the inside out.

About Kraig Kleeman

Kraig Kleeman is a highly successful entrepreneur, author, and showrunner. If his accomplishments and aspirations were to draw inspiration from natural icons, he could be described as a fusion of Elon Musk’s visionary approach to business and Mick Jagger’s electrifying stage presence. He possesses keen business acumen and a flair for captivating performances that awe audiences.

Kraig’s entrepreneurial spirit is boundless, as evidenced by his track record of founding a tech company and taking it from nothing to $30 million in sales, in less than four years. His newest venture, CEO Branding Worldwide, is growing by triple digits, quarter over quarter. While some may liken his abilities to a Midas touch, others prefer to think of it as transforming companies into profitable ventures instead of turning things into gold!