Why Employee Engagement is Key to Success

Date:   Wednesday , June 15, 2016

Headquartered in California, Cadence is a global leader in providing EDA, semiconductor IP and custom/analog tools that enable engineers to design transistors, standard cells, and IP blocks that make up SoCs, thus automating the design & verification of giga-scale, giga-hertz SoCs.

It is a universal truth that happy and engaged employees are the key to a successful organization. Promoting a healthy, positive and productive environment requires a continuous connection with employees through an active and meaningful employee engagement program.

What is Employee Engagement?

Employee engagement defines the way an individual contributes and relates to the organization. An employee\'s engagement with an organization is both rational and emotional. The rational level refers to the practical aspects of employment such as role and responsibilities, compensation, opportunities for growth and benefits. The emotional aspect is more intangible. It is about the culture at the workplace; teamwork, relationships with managers & colleagues, feeling appreciated & valued, and a close alignment with company\'s mission and purpose.

Employee engagement is critical to an organization\'s success in both good and bad times. While in good times, organizations focus on attracting top talent that can help the company to grow and retain the best employees; in tough times, the groundwork laid by the employee engagement process becomes even more critical. A tough business environment can call for drastic decisions that can demoralize the team. However, if employees are kept abreast of the developments, they feel that the company genuinely cares about them and are motivated to help the company succeed; then the effects of a downturn can be mitigated to a large extent.

Studies show that one of the biggest mistakes companies make is not prioritizing and understanding the impact of employee engagement when times are tough. Employees are always on the lookout for jobs that meet their needs and give them the freedom to learn & prosper. During challenging economic times, engaged employees remain passionate and feel connected to the company, and the success of the organization becomes a personal challenge that everyone has to work together to achieve.

How Do You Create An Environment For Engagement?

Essentially, creating an environment for engagement is about getting back to basics. Levers such as communication, career development, non-financial motivators and performance management are some of the basics that have a profound impact on positive employee engagement. Career development and performance management are obvious, but let\'s look more closely at communication and non-financial motivators.

Communication: Right from the top and down the line, there has to be consistent, honest, and direct two-way communication. Employees need to have a clear line of sight to the company\'s vision and goals. As each individual understands the relevance of his or her contribution to the business\'s success, chances are that the employee will stay focused and motivated.

Non-financial Motivators: During good times and bad, non-financial levers such as recognition, the opportunity to upgrade skills, and working on challenging projects are powerful motivators. They are not only critical in keeping morale high, but motivators such as these also encourage employees to go the extra mile and build a culture of learning, respect, teamwork and fun.


Many studies have shown that compensation, though important, is not the sole driving force that motivates employees. Other aspects such as the respect and recognition the employee receives, the opportunities to upgrade skills and grow in the field, opportunities to work on tough assignments and a vibrant work culture that promotes fairness and accountability have an equally important role to play. A good employee engagement program in the organization will pay attention to both the rational and emotional engagement needs of employees, setting up the company for success and growth for the long term.