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How to Team Lead: Employee Engagement

This article explores how focusing on employee engagement can significantly elevate your leadership impact and drive organizational success. Learn practical strategies based on five key elements of the employee experience.

/ 19 min read /

In the first article of this series, we explored the foundational aspects of team leadership - establishing effective communication through regular one-on-one meetings and team catch-ups. These practices establish the essential structure for both individual support and team unity.

Now, we'll build on that foundation to examine how you can elevate your leadership impact by focusing on employee engagement. While those initial communication channels help you understand your team's challenges and build trust, this article explores a comprehensive framework for measuring and improving the entire employee experience - ultimately driving both team satisfaction and organizational success.

Whether you've already implemented those communication practices or are seeking a broader understanding of team leadership, this guide offers practical strategies to enhance employee engagement and team performance by focusing on five key elements of the employee experience.

There are numerous methods and frameworks we can utilize to measure and improve organizational success in software organizations. Each of them utilizes different categories or dimensions. The SPACE framework (https://getdx.com/blog/space-metrics/) looks at Satisfaction, Performance, Activity, Communication and Efficiency. The newly released productivity framework DX Core 4 (https://getdx.com/research/measuring-developer-productivity-with-the-dx-core-4/) looks at Speed, Effectiveness, Quality and Impact. Some elements within these frameworks, such as the Satisfaction element of the SPACE framework, primarily focus on employee well-being. However, both frameworks primarily focus on improving specific key performance indicators (KPIs) for better overall performance, efficiency, and quality work output.

Studies show that when people are in a good mood and feel positive about their work, they're more focused, creative, and accomplish more. But just being efficient doesn't automatically make someone happy. An individual could be highly skilled and productive, yet if they are stressed, unappreciated, or lack enthusiasm for their work, they are likely not going to be happy. In fact, someone could perform the work of four employees flawlessly and still feel constantly burned out and miserable to the point where they need, and likely should, consider quitting. This is one of many reasons why focusing on your team’s happiness and engagement to build internal processes will likely lead to better long term results.

Therefore, I want to highlight a different approach, taken by Gallup's Q12 surveys and Josh Bersin’s Holistic Employee Experience Framework, both of which primarily focus on employee well-being and employee engagement.

Imagine your employer sends you flowers, brownies and a thank you note that acknowledges your efforts after a particularly stressful week. This actually happened to me a few years back and I still remember it being one of the nicest things an employer did for me. That is not just because I love brownies! These kinds of gestures generally have a big impact on employee happiness, making the employee care more about their work and company even if it's just subconsciously. This is employee engagement.

Employee engagement motivates individuals to perform at their best and most efficiently. Studies show that higher engagement can increase a company's revenue growth by 130% and profitability by 23%. These impressive statistics are supported by findings from leading global professional services firm Deloitte and decades of research from Gallup, a global analytics and advisory firm.

This means that as a leader, you have the opportunity to directly impact your company's success by keeping employees engaged. Peter Drucker, also known as the “Father of modern management,” said that “what gets measured gets managed”. Applying this principle to the topic of employee engagement, we need to know how to measure it to determine which actions are most effective in increasing it.

In the previous article, I discussed two methods to gauge employee engagement, including one-on-one meetings and team catch-ups, where you can directly ask your colleagues how they feel about various aspects and processes within the company.
To measure engagement more efficiently, consider using an employee survey with these key features:

  • annual or semi-annual recurrence
  • a Likert Scale (from strongly agree to strongly disagree)
  • and a focus on specific key drivers of engagement

Making the survey recurring is important to identify and react to decreasing trends, and to further cultivate increasing trends in employee engagement. The Likert Scale is a scale for respondents to indicate their level of disagreement or agreement. Commonly these are 5 or 7 possible answers. E.g., strongly agree, agree, neutral, disagree, and strongly disagree. Keeping the number of possible answers limited and consistent across all questions makes it easier for people to answer quickly. The reason for asking specific, focused questions is that instead of a single percentage representing overall employee agreement, you'll obtain multiple percentages for different aspects, allowing for more targeted improvement efforts. This is also why I personally don’t recommend using the eNPS (employee net promoter score), which measures employee engagement based on the single question of whether they would recommend working at the company to someone.

To calculate an average employee engagement score follow these steps:

  1. Sum all answer scores (where 4 is most positive and 0 is most negative)
  2. Divide by the total number of answers to get a raw score (e.g., 3.2)
  3. Convert to a percentage, divide the raw score by the maximum possible score (4 in this case) and multiply by 100

For example: 3.2 / 4 * 100 = 80%. This indicates a high level of engagement, with most respondents selecting 'agree' (3) or 'strongly agree' (4). Spotify uses a similar approach with their health check, utilizing a traffic light system: green (positive), yellow (neutral/"can be improved"), and red (negative).

For yellow and red responses, Spotify creates dedicated team meetings to discuss these areas and develop concrete action items for improvement. I recommend doing the same for your engagement percentages, but also create action items for positive areas with a "how to maintain these strengths long-term" approach. An important tip- ensure you respect anonymity and don't put individuals on the spot during these discussions.

Now that we've covered how to ask specific questions to measure engagement, and develop team action items to improve or maintain high engagement, let's discuss how we create a comprehensive survey with multiple question categories to identify potential improvements. Frameworks like McKinsey's 9 Elements of Employee Experience and Josh Bersin’s Holistic Employee Experience Framework suggest focusing on various aspects of the employee experience. To simplify this, I recommend looking at the following 5 key elements of employee experience when starting to measure engagement.

The 5 elements of employee experience try to encompass every aspect of an employee and their employment.

Workplace (Digital & Physical)

Workplace describes the physical and digital workspace of an employee. That means your desk, including surroundings, remotely or in a company office, computer hardware, and the software and technologies you work with digitally. A Harvard study found that employees with supportive technology are 230% more engaged and 85% more likely to stay in their jobs for over three years. To illustrate, if a company with unsupported technology has 25% engagement, a company with supportive technology could see up to 82.5% engagement (25 * 2.3 + 25).

Potential Questions / Statements:

  • "My physical workspace (e.g. desk, office, shared spaces) supports me in being productive"
  • "The digital tools and systems I use (e.g. IDE for developers or software, communication platforms) enable me to collaborate effectively with my colleagues"

Potential Action items for improvement:

Offering Remote work - Qualtrics research has shown that 35% of employees would be more likely to search for a new job if they were required to return to the office full-time.

Suggest Tech or Process improvements seen as weakness by the team directly to higher management if necessary - Ensure the team generally supports the proposed improvement and believes it will lead to a more positive and efficient work environment before suggesting it to higher management. Support this with a business case outlining estimated implementation time, projected engagement and time-saving gains, and other added benefits. Ensure that implementation costs don't outweigh long-term benefits.

Offering a budget for hardware to work with - Especially relevant with remote working employees who need a good standard of hardware. That can be a good quality company laptop with the employee's preferred operating system or smaller peripherals like a keyboard, mouse, and headphones. In the best case, the employee has a certain budget that they can use to put together their own preferred setup of hardware.

A strong organizational culture, built on a shared vision, values, and a commitment to diversity, equity, and inclusion (DE&I), is fundamental to a positive employee experience. This culture significantly impacts how employees interact with technology, their workspace, colleagues, and their work. A 2023 report by McKinsey & Company indicates that collaborative environments, a key aspect of a healthy culture, lead to 25% higher productivity. Additionally, research from Deloitte found that inclusion can increase employee engagement by up to 83%. As a leader, your problem-solving approach, strategies for enhancing inclusivity, and communication style—especially active listening and encouragement—directly shape a collaborative and engaging environment.

Potential Questions / Statements:

3 Questions directly taken from Gallups Q12 survey:

  • “Does my supervisor, or someone at work, seem to care about me as a person?”
  • “At work, do my opinions count?”
  • “Does the mission or purpose of my company make me feel my job is important?”

Potential Action items for improvement:

Lead by Example in Demonstrating Care - Leaders should model caring behaviors, show genuine interest in team members, and create a safe space for open communication and vulnerability.

Foster Psychological Safety - Create an environment where employees feel safe to express dissenting opinions, challenge the status quo, and make mistakes without fear of negative repercussions.

Foster inclusion through meaningful participation - Making people feel included is very important for engagement and development. Invite team members to meetings for tasks that will eventually become relevant to them. While it might seem efficient to include only senior staff in scoping meetings, consider involving developers from the implementation team. This builds their knowledge, gives them more responsibility, and demonstrates trust in their capabilities.

Empower employees and encourage innovation - Foster autonomy and a break from routine by implementing initiatives like a Platform Day every sprint (e.g. 2 weeks). A Platform day provides employees with the opportunity to research topics or complete tasks that are of general interest to them and their colleagues working in the same field. This encourages employees to become subject matter experts, share their knowledge, and establish innovation and curiosity as core team values. Ensure these remain exploration opportunities without added pressure.

Create Opportunities for Social Connection and Team Building - Organize team lunches, social events, or informal gatherings to foster stronger interpersonal relationships and a sense of community within the workplace.

In an ever changing world of new technologies like AI and processes, such as new employee frameworks, change is the only constant. Growth and development enables companies, teams and employees to learn and adapt to these new circumstances and create innovative changes themselves. For employees, growth and development feed the fundamental need for self-actualization and self-esteem, while for companies, they are necessary to stay competitive. From an employee's perspective, this can mean progressing from junior to senior levels and potentially into new roles with greater responsibilities. It's not just about enabling rapid growth but also focusing on retention strategies that keep employees long-term, allowing the organization to benefit from their increasing expertise. A study by Deloitte revealed that companies with strong learning cultures are 92% more likely to develop novel products and processes. Additionally, these companies are 52% more productive. A PwC research study also shows that 74% of employees are willing to learn new skills or re-train to remain employable.

Potential Questions / Statements:

  • “My job provides me with opportunities to learn new skills.”
  • “My manager and I have had meaningful conversations about my career path in the last six months."
  • “The skills I'm developing here will help me advance my career, whether at this company or elsewhere.”

Potential Action items for improvement:

Implement bi-annual performance assessments with goal setting - Schedule dedicated time twice a year for career discussions and professional development planning. These sessions ensure that managers and employees have meaningful conversations about career paths and future growth opportunities, addressing the crucial need for regular career guidance.

Enable growth through challenging responsibilities and mentorship - Andrew Grove, Former CEO of Intel said “A manager's task is to make himself or herself obsolete”. This means delegating demanding tasks like estimations, technical specifications or other tasks you may typically handle to members of your team. Initially, this may require investing more time and mentorship but it's the best way for team members to develop these skills.Once they feel comfortable working on this kind of task, they will be able to work independently and it will free up time for you to focus on your own development and growth.

Prioritize transferable skill development - Invest in developing broadly marketable skills beyond company-specific knowledge to increase employee retention. The LinkedIn Learning Report found that 94% of employees would stay longer at a company investing in their career development. Exposure to diverse industry techniques also fuels innovation. Consider implementing learning budgets, dedicated development time, or rotation programs.

Establish a transparent progression framework - Document clear criteria for advancement and growth paths, being honest about organizational limitations. Emphasize that progression isn't solely about title changes but can include expanded responsibilities, deepened expertise, or cross-functional skills, especially in smaller teams where upward mobility might be limited. Support employees in creating new roles where possible.

Ensuring employees feel appreciated and acknowledged begins with establishing a solid foundation of competitive compensation. As evidenced by studies showing that 55% of employees leave for higher pay, salary remains the baseline for employee satisfaction and retention. However, compensation alone is not the sole driver of engagement and productivity. Research indicates that 45% of employees would prefer regular praise over a 10% pay increase without recognition (Reward Gateway). This would also explain Achievers' findings that increasing recognition frequency from quarterly to monthly can boost engagement and productivity by a whopping 40%. This figure underscores the necessity of a strategic approach that builds upon a fair salary with frequent and meaningful recognition potentially including smaller rewards to cultivate a truly motivated, productive, and loyal workforce.

Potential Questions / Statements:

  • "I feel my contributions are recognized and valued by my manager and team."
  • "I believe my compensation (salary and benefits) is fair compared to similar roles in other companies."
  • "There is a clear link between my performance and how I am recognized or rewarded."
  • "Recognition and praise are given in a timely manner when good work is done."
  • "Besides my regular pay, the company offers meaningful ways to reward exceptional effort or results."

Potential Action items for improvement:

Advocate for Fair Compensation - Recognize that fair salary and timely increases are the foundational way employees feel valued and can support their lives. While fostering a 'family feel' is nice, it shouldn't be a substitute for fair pay. Advocate for your team during reviews by understanding market rates and documenting their performance. Ensure transparency in compensation decisions where possible.

Celebrate Milestones and Successes - Acknowledge work anniversaries, project completions, the achievement of team goals, or significant contributions to reinforce a sense of accomplishment and team unity. Recognizing tenure is particularly important for retention. For instance, a previous employer of mine in Germany awarded a €500 bonus when an employee reached their five-year anniversary with the company. This gesture was a very impactful way to tangibly acknowledge long-term commitment.

Utilize Diverse Recognition Methods - While fair pay is essential, explore other forms of recognition. Consider offering interesting projects, learning budgets, extra time off, team lunches, small gifts, or peer recognition programs to accommodate individual preferences. It's important to distinguish these meaningful acknowledgements from standard office amenities, such as free snacks and drinks, which don't function as genuine recognition for specific contributions. Ensure these rewards feel genuine and don't replace deserved compensation adjustments.

Implement Regular and Specific Praise - Don't wait for formal reviews. Acknowledge good work, effort, or helpful behaviour promptly and specifically, both privately (1-on-1s) and publicly. Be sure to explain why the contribution was valuable.

Well-being is a foundational element in our employee-centric framework. Regardless of your role–developer, designer, project manager, or CEO–we all benefit from work environments that support our physical, mental, and emotional health. As mentioned earlier, we want to create an environment that enables people to do their best and thrive long term. This should include offering support that is readily available, achievable work-life balance and no chronic stress. Aon's research suggests that improving employee well-being can enhance company performance by 11-55%, while Deloitte found that for every £1 spent on supporting mental health, companies see a £4.70 return in productivity. By prioritizing well-being, leaders are not only demonstrating genuine care for employees but also unlocking significant potential for enhanced performance and organizational success.

Potential Questions / Statements:

  • "My workload feels manageable on a regular basis."
  • "I feel encouraged and able to disconnect from work outside of my working hours."
  • "I feel comfortable taking time off (vacation, sick leave) when I need it without feeling guilty or pressured."
  • "My manager genuinely cares about my well-being."
  • "The company provides adequate resources and support for employee mental and physical health."

Potential Action items for improvement:

Cultivate a Culture of Psychological Safety and Flexibility - Create a supportive environment where team members feel safe discussing challenges and needs for flexibility (within appropriate boundaries) without fear of judgment. Lead with empathy and actively promote flexible working arrangements (hours, location) where possible to help employees better manage their work and personal lives.

Regularly Check In on Workload - Use 1-on-1s to proactively ask about workload manageability. Help team members prioritize tasks, identify potential constraints, and redistribute work if someone is consistently overburdened. Be realistic about deadlines.

Actively Encourage Time Off - Don't simply approve vacation requests; actively encourage team members to use their annual leave. Help them plan for coverage so they can fully disconnect without worrying about work piling up. Respect sick leave and avoid pressuring employees to return before they are ready.

Signpost Resources - Be aware of company resources like Employee Assistance Programs (EAPs), mental health support, wellness initiatives, and comprehensive benefits packages. This includes healthcare and pension contribution options that people should have access to. Remind your team that these Benefits are available and confidential.

Lead by Example with Boundaries - Demonstrate healthy work habits yourself. Avoid creating code pull requests or sending emails late at night or on weekends unless truly urgent. Take your own vacation time and disconnect. This signals to your team that working outside business hours is not expected and it's okay for them to take their private time to do other things.

Low employee engagement is never an isolated issue! It's often a symptom of challenges and friction as a product of all aspects of the employee's experience. Whether as an Engineering Manager for multiple teams or a Team Lead for a specific one, you can establish a framework that strategically addresses the physical and digital Workplace, nurtures a positive Culture, fosters opportunities for Growth & Development, provides meaningful Rewards & Recognition, and prioritizes Well-being for all employees.
You can spearhead innovation and be the catalyst for organizational success that resonates far beyond your team!

// DISCUSSION

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How to Team Lead: The First Steps

Congratulations! You’ve landed the role! Whether it’s a promotion or a new job. You’ve proven to others you have what it takes, but chances are you’ve not fully convinced yourself yet. It’s normal to be nervous and afraid of new responsibilities. This article and the "How to Team Lead" series are designed to help you gain confidence and succeed.

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