Why Return on Engagement is the new ROI
As the Chief Experience Officer at Appspace, Holly Grogan emphasizes the critical connection between satisfied, engaged employees and happy customers. Holly’s role underlines the importance of high employee engagement in driving organizational success. In this Q&A, she discusses how focusing on employee engagement can increase productivity and customer success, particularly in today’s tight labor market.
Holly, could you share your perspective on the “Return on Engagement” (ROE) concept and why it’s becoming the new ROI for organizations?
The idea of “Return on Engagement” revolves around understanding that our investment in employees directly impacts overall business performance. This concept is not new, but it really came to light during the pandemic. Engaged and satisfied employees are more productive, innovative, and committed to the organization. Better engagement equals better retention of top talent and translates into better customer experiences.
Given the challenges of the labor market, what strategies can organizations adopt to improve employee experience and engagement?
Continuous feedback and organizational transparency are key. Team members want to be heard and want leadership to be upfront about the state of the business and expectations. The right technology can create a more connected and supportive workplace.
For example, employee apps and modern intranets help build communities that give employees a voice and keep them informed. Additionally, recognizing and addressing the individual needs of employees, such as flexible working arrangements, is crucial in today’s hybrid work landscape.
How do you see the role of HR technology evolving to meet these new employee experience expectations?
HR technology is becoming more employee-centric or, in reality, more consumer-centric. Team members want their work technology to be as simple and easy to use as the apps they use every day. Solutions focusing on real-time feedback, personalized experiences, and seamless communication are critical.
Another shift is that top-down communication doesn’t work in today’s workplaces. Employees can play a central role in communications and collaboration strategies. Workplace technology can provide a communication channel for them to be content creators and workplace influencers in their own right.
According to a Gartner report, a positive employee experience significantly impacts retention and performance. How can organizations ensure they are meeting these expectations?
I recently read an article where someone said, “active listening is a superpower.” I agree 100 percent. Organizations that actively listen to and act on their employees’ feedback will be the “best places to work.” Active listening can look different depending on the organization.
Creating regular opportunities for employees to share their thoughts and experiences through surveys, focus groups, or informal check-ins are some best practices. When employees see that their input leads to tangible changes, they feel valued and more engaged. Fostering a recognition and appreciation culture can also significantly boost morale and loyalty.
With the rise of hybrid work, what role do you see workplace experience applications playing in maintaining engagement and productivity?
Workplace experience platforms are pivotal in bridging the gap between remote and in-office work. They help ensure employees have the tools and resources they need to be productive, no matter where they work.
In the last year or so, we saw a lot of return-to-office mandates. Yet, no leader wants to add friction to the employee’s in-office experience. Features like virtual meeting rooms, collaborative platforms, and instant messaging keep teams connected and aligned. These applications also help manage spaces effectively, ensuring employees have a productive and seamless experience when they come into the office.
How can organizations balance the need for flexibility with collaboration and team cohesion in a hybrid work model?
Flexibility and collaboration go hand in hand when approached thoughtfully. It’s all about creating an environment where people feel connected, no matter where they work. Technology plays a huge role here—tools like video conferencing, chat platforms, and shared digital workspaces make it easier for teams to stay aligned and engaged.
But technology alone isn’t enough. Regular check-ins and purposeful communication keep everyone on the same page. Appspace is largely a remote-first company, but we understand the power in bringing people together, whether for brainstorming sessions, team-building activities, or even casual social time. One of my goals is to meet with teams and customers as much as possible – in person. Those moments go a long way in strengthening relationships and building trust.
What impact do you think the declining working-age population will have on organizations’ approach to employee experience?
A shrinking working-age population means organizations must double down on keeping their current employees engaged and invested. It’s no longer just about hiring, we need to build workplaces people don’t want to leave. That starts with creating a meaningful employee experience, including growth opportunities, a supportive culture, and ensuring employees feel genuinely valued.
When people see a clear path for their career and feel part of something bigger, they’re more likely to stay and contribute. Companies prioritizing these areas will have a distinct edge, even as the talent pool becomes more competitive.
Looking ahead, what trends will shape the future of employee experience and workplace engagement?
The future of employee experience is all about personalization. The days of jumping between multiple apps to get work done are gone. Employees will have easy access to their teams, tools, and the information they need to succeed. I’ll reiterate that the workplace will start to mirror the smooth, intuitive experiences we’re used to as consumers.
In addition, AI will continue to change how we work, providing proactive insights to help address employee needs before they become issues and supporting team members with managing more time-intensive tasks. Whether AI improves workflows or enhances engagement, the desired outcome should be making work more straightforward and meaningful for everyone.
Is there anything else you’d like to share about the importance of focusing on employee experience in today’s work environment?
Prioritizing employee experience isn’t just about being a great workplace; it’s a smart business strategy. Organizations that focus on their employees’ well-being and engagement see higher productivity, more innovation, and better customer satisfaction. Would you rather have a happy employee or unhappy one provide your service? We can imagine what the impact is for organizations with thousands of team members. A better, more engaged workplace will set them apart.
Technology can make it easier for people to stay connected and do their best work. With return-to-office mandates and hybrid policies rolled out, 2025 will be the year to focus on building workplaces where both employees and businesses can thrive.
