Employee Engagement Isn’t Just About Free Lunches - Here’s What Actually Works Beyond the Perks
Bex Spiller, FRSA
'Anti-Burnout Bex' - Award-winning workplace wellbeing consultant - I help purpose-led businesses & B Corps build happy, healthy and engaged teams so they can improve productivity, profitability and impact.
Free lunches, desk massages, gym memberships and even on-site tanning and Botox (1) (honestly), there’s been an exponential rise in employee perks over the last decade or so. But here’s the question on everyone’s lips… Are these perks doing their job? Are they keeping employees engaged?
In this week’s newsletter, I’ll be digging into:
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The Reality of Perks and Employee Engagement
Perks are often seen as a quick fix for employee satisfaction. They’re easy enough to implement, often look really good on social media, and on the surface, seem like a great way to keep employees happy. But here’s where things start to fall apart: perks don’t guarantee engagement.
Despite the steady rise in workplace perks, only around 20% of employees globally feel engaged in their work. In the UK, that number drops to just 10%, according to Gallup (2).
If we zoom out and look at Gallup’s historical data, engagement levels have risen by nine percentage points globally over the last decade. That’s progress, but not exactly groundbreaking. If perks were the game-changer they’re often made out to be, we’d expect to see much higher engagement levels by now.
The reality is that while perks might create momentary boosts in morale, they don’t solve deeper workplace issues. Free lunches don’t make up for a lack of career development. An on-site gym doesn’t fix poor management. And unlimited PTO doesn’t mean much if employees feel guilty for actually using it.
So while perks can add value to the employee experience, they’re not the foundation of an engaged workforce. If businesses want to see real improvements in engagement, they need to look beyond short-term perks and focus on what truly drives motivation, commitment, and job satisfaction.
Why Should We Care About Engagement Anyway??
It’s easy to think of employee engagement as just a ‘nice-to-have.’ Sure, it’s a little extra effort to keep people happy, but does it really make that much of a difference?
The data says yes.
When employees are engaged, businesses thrive. When they aren’t, the costs (both financial and human) can be staggering. Gallup estimates that low employee engagement costs the global economy a shocking $8.9 trillion USD, equivalent to 9% of global GDP. That’s because disengaged employees are less productive, more likely to leave, and more prone to stress and burnout.
Let’s break down why engagement matters and what’s at stake using statistics from that same Gallup report:
Employee Engagement Drives Business Performance
Companies with highly engaged employees outperform their competitors across every major business metric. Research shows that businesses with strong engagement levels see:
? 23% higher profitability
? 18% higher productivity in sales-driven roles
? 14% higher productivity in production-based roles
? 10% higher customer loyalty and engagement
When employees feel connected to their work, they don’t just show up, they contribute. Engaged teams perform better, innovate more, and drive growth.
On the flip side, disengaged employees don’t bring the same energy, focus, or commitment. They’ll do the bare minimum to get by and may even ‘Quiet Quit’ (more on that another time).
Engagement is Tied to Wellbeing and Mental Health
Engagement doesn’t just impact work, it affects life outside of work, too. Employees who feel engaged are 70% more likely to describe themselves as “thriving” in life
On the other hand, disengaged employees experience 54% higher stress levels and are significantly more likely to struggle with poor mental health.
That means a disengaged work environment isn’t just bad for business, it’s bad for people. It contributes to burnout, anxiety, and chronic stress, which, in turn, impacts productivity, morale, and retention.
If we care about employee wellbeing, we need to care about engagement.
Use Perks Alongside These Five Areas
Perks can be a nice bonus, but they aren’t a replacement for the deeper factors that drive real employee engagement. Think of perks as the icing on the cake… great if the foundation is solid, but completely ineffective if the core structure is crumbling!
So, what actually moves the needle on engagement? There are five key areas that I focus on in any organisation I work with:
1. Purpose & Meaningful Work
A McKinsey report (3) found that 70% of employees say their work largely defines their sense of purpose. When they feel a strong sense of purpose, they report higher levels of job satisfaction and engagement. They understand how their daily tasks contribute to a bigger picture, and that connection makes them feel valued and motivated.
2. Recognition & Appreciation
A lack of recognition is one of the top three reasons employees feel disengaged and leave their jobs (4). If people don’t feel valued, no amount of free coffee or gym memberships will make up for it.
3. Career Development & Growth Opportunities
Engagement isn’t just about the present, it’s about the future. Employees who don’t see a path for growth (both in their career and outside of work) are far more likely to disengage, regardless of how many perks their company offers.
4. Work-Life Balance & Psychological Safety
Even the best perks can’t compensate for burnout and stress. 92% of workers said it is very or somewhat important to them to work for an organisation that values their emotional and psychological wellbeing (5). Employees who are overworked, micromanaged, or afraid to speak up will never feel fully engaged.
5. Autonomy & Self-Determination
Empowering employees with autonomy (the freedom to make decisions about their work) significantly enhances engagement and job satisfaction. When individuals feel they have control over their tasks and responsibilities, they are more motivated and committed to their roles. The CIPD even cites autonomy as one of “the most established influences on motivation” at work (6).
Practical Steps to Implement What We’ve Learnt
At the end of each of my newsletters, I want to ensure you walk away with some useful, practical steps to help you implement everything we’ve learnt. So, here’s how to move beyond perks and build real engagement.
1. Listen to Your Team (And Act on What You Hear)
?? Why It Matters: Employees who feel heard are 4.6 times more likely to feel empowered to perform their best work (7). Engagement starts with understanding what your team actually needs, not what you assume they need.
How to Implement:
? Run quarterly pulse surveys to gauge engagement and pain points.
? Hold monthly one-on-ones to check in on workload, career goals, and wellbeing.
? Create an anonymous feedback system to encourage honesty.
? Share follow-up actions based on employee feedback to show you’re listening.
?? Common Mistake: Asking for feedback but never acting on it. This breeds cynicism and disengagement.
2. Build a Culture of Meaningful Recognition
?? Why It Matters: As we have already seen, a lack of recognition is one of the top three reasons people leave their jobs. If they don’t feel recognised, they don’t feel engaged.
How to Implement:
? Move beyond generic praise (“Great job!”) to specific, meaningful recognition. Example: “I really appreciate the way you stepped up on [specific project], it made a huge difference.”
? Focus on performance or role accomplishments and value to your organisation over personal accomplishments or day-to-day behaviours.
? Encourage peer-to-peer recognition by setting up a Slack/Teams channel or monthly shoutout meetings. (Or a post-it note wall is a personal favourite for those in the office)!
? Tie recognition to company values so employees see their work as meaningful and can bring it back to purpose.
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?? Common Mistake: Making recognition one-size-fits-all. Some employees prefer public praise; others prefer a private “thank you.” Ask what your team likes and adapt to individual preferences.
3. Prioritise Career Growth & Development
?? Why It Matters: In the latest LinkedIn Workplace Learning Report (8), 84% of employees agree, "Learning adds purpose to my work." If employees don’t see a future with your company, they’ll look elsewhere, no matter how many perks you offer.
How to Implement:
? Have managers create individual career progression or development plans for every team member.
? Offer mentorship programmes connecting employees with leaders inside (or outside) the company.
? Encourage cross-training and lateral moves so employees can explore new skills without leaving.
? Set up learning budgets so employees can attend workshops, conferences, or online courses.
?? Common Mistake: Assuming ‘career growth’ only means promotions. Not every employee wants to manage people. Some want to deepen their expertise instead. Offer multiple career and learning pathways.?
4. Design Work for Wellbeing (Not Just Productivity)
?? Why It Matters: A stressed-out, burnt-out workforce won’t be engaged, regardless of perks or any other engagement measures. We’ll tackle this in more detail in another newsletter, but for now…
How to Implement:
? Audit workloads regularly to ensure expectations are realistic.
? Encourage genuine time off by leading by example (managers should take breaks too!).
? Offer mental health resources and tools to help improve their wellbeing.
? BUT make sure you give people the time and space to use those tools.?
?? Common Mistake: Promoting ‘self-care’ while ignoring overwork. Wellbeing isn’t about employees managing stress better, it’s about designing a workplace that doesn’t create excessive stress in the first place.
5. Train and Empower Managers to Lead Effectively
?? Why It Matters: Managers account for 70% of the variance in team engagement (2). If your managers aren’t engaged and equipped, their teams won’t be either.
How to Implement:
? Provide leadership training focused on coaching, feedback, and communication, not just task management and delegation.
? Set clear expectations. For example, managers should have regular check-ins with their teams, not just performance reviews.
? Train managers to support employee wellbeing, not just push for productivity.
? Promote emotional intelligence (EQ) training so managers can navigate tough conversations and build trust.
?? Common Mistake: Promoting high performers to management without training them. Being good at a job doesn’t mean someone will be good at leading people.
6. Set Clear (Purpose-Driven) Goals and Expectations
?? Why It Matters: Employees want to know that the work they’re doing has purpose and that it’s moving everyone in the right direction. Being clear with goals and expectations can help improve engagement and sense of purpose.
How to Implement:
? Implement realistic OKRs (Objectives & Key Results) or SMART goals so employees have clear, measurable targets.
? Communicate company goals transparently so employees see how their work fits into the bigger picture.
? Align individual goals with company values and mission to create purpose-driven work.
? Regularly review goals with flexibility, if priorities shift, communicate them clearly.
?? Common Mistake: Setting vague, unrealistic, or shifting goals without clear communication. Employees disengage when expectations feel unclear, constantly change without context, or seem disconnected from the company’s broader mission.
BONUS: Quick Wins to Try This Week
?? If you only have 5 minutes, do one of these today:
? Send a personalised thank-you message to a team member for something specific they did well.
? Ask one open-ended question in your next meeting: “What’s one thing we could improve as a team?”
? Audit your last few pieces of feedback. Was it clear, meaningful, and constructive?
? Encourage a team-wide break. Send a quick message reminding people to step away from their desks for a few minutes.
? Check in on someone’s workload. A simple “How’s everything going?” can open the door to better workload management.
?? If you have an hour, do one of these this week:
? Run a mini engagement survey (3-5 questions) and commit to addressing the feedback.
? Have a 1:1 career check-in with at least one team member.
? Review one of your team’s workflows/processes and identify any unnecessary friction or stress points.
? Map out your team’s top priorities. Align everyone on what truly matters this quarter.
? Start a “What I Learned This Week” thread. Foster knowledge-sharing within the team.
?? If you have no time (or would prefer someone else did it for you), take a look at how I might be able to help here
Wrap Up
Perks can make work more enjoyable (I’ll never turn down a free lunch!), but they aren’t the key to employee engagement. If you really want to boost engagement, focus on purpose, recognition, and building a workplace where people feel genuinely valued.
I hope you’ve found the first Employees Are People (EAP) Newsletter helpful! I’d love to hear your thoughts, questions, concerns, or even any topics you'd like to see covered. Pop them in the comments or send me a DM.
Oh and feel free to share this newsletter with anyone who might find this useful, too. Thank you!
Next week: The rise of 'mental fitness' – and what it means for our teams.
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Thank you for sharing. You can also check this related post. "9 Destructive Ways Leaders Fuel Team Disengagement (and Quiet Quitting)" https://www.dhirubhai.net/posts/leadership-avenue_leadership-personalgrowth-linkedin-activity-7295303474626326528-oOMK?utm_source=share&utm_medium=member_android
'Anti-Burnout Bex' - Award-winning workplace wellbeing consultant - I help purpose-led businesses & B Corps build happy, healthy and engaged teams so they can improve productivity, profitability and impact.
2 周I also definitely didn't mean to hit publish at midday, but it took me much longer to write than anticipated (and now it all ties in nicely to lunchtime doesn't it)!