Why engagement matters more than ever

Understanding what drives people to stay, perform, and grow gives firms a clear advantage.

Tools such as the Gallup Q12 help leaders see what’s working, where there are gaps, and how to create an environment where talented people can do their best work. 

When engagement levels are high, performance levels increase, productivity rises, and firms build sustainable success. 

Engagement is often the real differentiator between firms that simply get by and those that stand out. 

Four key insights – what our data tells us

In a sector where it is difficult to find benchmarking for team engagement, the data from 63 surveys across 29 accountancy firms fills an important gap and provides firms with valuable insights grounded in the specific professional context of accountants in practice.

From the data, we’ve been able to identify clear trends, recurring challenges, and the behaviours that consistently drive stronger engagement.

The data tells us that today’s accountants want:

1. A team-first commitment.  This might feel as if it conflicts with a client-led approach, but it doesn’t!

The ‘human chain of sustainable success’ introduced at the beginning of this report shows that team engagement determines client loyalty – and only then is sustainable success achieved. 

Where we have three years of data, these firms have shown consistent upward progress, with average engagement scores rising by 4.5% between the first and second years, and by 12% across the three-year period. 

This level of improvement doesn’t happen by accident; it reflects leaders who are focused, committed, and willing to implement meaningful change based on the insights from their team engagement surveys.  A genuine commitment to improving engagement year on year pays off.

These firms have been able to translate their firm’s data into action, embedding practical routines and behaviours that strengthen communication, clarity, and connection.  The results demonstrate how a sustained commitment to team engagement, combined with targeted support, can create a measurable and lasting impact on the culture and performance of an independent practice. 

2. Clear expectations – something almost every firm can improve. 

One of the most consistent patterns in our dataset is the impact of Question 1 – “I know what’s expected of me at work.”  When teams score highly on this question, it means there is clarity, confidence, and direction, which in turn lifts many of the other engagement measures. 

3. Recognition – a powerful but often underplayed driver of engagement because it reinforces the behaviours firms want to see, while making people feel genuinely valued for their contribution.   When recognition is timely, specific, and sincere, it builds trust and motivation in ways that policies and incentives alone rarely achieve.

4. Flexibility – hybrid working has made it harder to keep teams feeling connected, part of a shared culture, and able to maintain a sense of wellbeing. 

The Gallup global research supports this insight, concluding that hybrid and fully working-from-home organisations can and do achieve great team engagement scores – but at a cost.  Whether your people are thriving is different from team engagement and requires your consideration as well.  For more on this issue, check out the Gallup findings.

One of the best team engagement scores comes from an accountancy firm that has a predominantly working-from-home business structure.  Three surveys by the same firm have seen their Gallup Q12 percentile ranking improve from 76 to 80 – an impressive achievement

What does this mean for firm leaders?

Having a highly engaged team transforms the way a firm operates – from the inside out.

For leaders, it means their people are motivated, proactive, and aligned with the firm’s goals, making it easier to deliver on strategy, hit targets, and adapt to change.  Engagement fuels collaboration and innovation, so leaders can spend less time firefighting and more time focusing on growth and client outcomes. 

Firms with highly engaged teams don’t just perform better internally, they stand out in the market.  When employees are committed and empowered, the quality of client service improves, relationships deepen, and loyalty strengthens – creating a virtuous cycle where an engaged team directly drives long-term client trust and satisfaction. 

While understanding the transformative power of engagement is essential, it’s equally important to recognise that awareness alone is not enough.  Many firms gather valuable data on team engagement, yet the real differentiator lies in how leaders respond to these insights.  Turning knowledge into meaningful action is what truly drives progress. 

By committing to visible, consistent steps, leaders can ensure that engagement initiatives translate into tangible improvements for both their teams and their clients.

Data and insight might be interesting - it's ACTION that improves your results:

Survey fatigue doesn’t cause low scores – lack of action does.  One of the most consistent insights from Gallup is that employees disengage when they’re asked for opinions but then don’t see visible change afterwards. 

Teams that take action after a survey improve the fastest – even small, consistent action, step by step, creates increased engagement – far more than large, delayed initiatives. 

Recommended action:  Review your results quickly and share them with your team, along with one or two things you’re changing that they can see/feel/experience.

Strengths-based leadership lifts performance – Gallup shows that if people get to use their strengths regularly, engagement and effectiveness increase significantly.  Strength conversations are often missing in poorly engaged teams. 

Recommended action:  Regular discussion between managers and teams about work they lo1818ve doing and that is of value to clients and the firm builds engagement.

High engagement protects firms during change – the global Gallup research shows that engaged employees navigate transition and uncertainty more positively, with better resilience and stronger client service. 

Listen to Paul and Doug share their insights into why its worth taking on the team engagement challenge...