Why Are Core Values Important in Employee Engagement?
By Dr. Bilal Ahmad Bhat, Author of 28COE Core Values – Edition 1
In today’s dynamic work environment, where employee expectations are evolving rapidly and businesses are embracing digital transformation and global expansion, one key element continues to act as the backbone of sustainable success—core values. As a thought leader, serial entrepreneur, and author of 28COE Core Values – Edition 1, I firmly believe that core values are not just philosophical ideas, but actionable principles that influence the entire employee experience.
Organizations across the globe—from startups to Fortune 500 companies—are now recognizing that fostering a values-driven culture is essential for attracting, retaining, and engaging employees. But why exactly are core values so crucial in employee engagement? Let’s explore.
1. Foundation for Organizational Culture
Core values define what your organization stands for. They provide a sense of direction and clarity for employees, aligning everyone toward a common purpose. When team members are immersed in a culture that reflects shared values—such as integrity, accountability, respect, or innovation—they are more likely to feel emotionally and professionally connected to their work. This emotional connection breeds loyalty and commitment, which are critical components of engagement.
Example:
In my own companies under the BAB Group umbrella, we emphasize values like transparency, service, and community. These aren’t just words on paper—they guide how we interact with clients, colleagues, and communities. As a result, our employees feel proud of where they work and are deeply involved in our mission.
2. Enhancing Trust and Psychological Safety
Employee engagement thrives in environments where individuals feel safe to express themselves, take risks, and collaborate openly. Core values like empathy, trust, and inclusivity help build psychological safety, creating spaces where people are not afraid of making mistakes or speaking up. Trust becomes a currency that fuels productivity, innovation, and engagement.
3. Creating a Sense of Belonging
When organizations promote values that employees resonate with, it nurtures a sense of belonging. People want to work for companies that reflect their personal values. In fact, research consistently shows that employees are more engaged and productive when they believe in their company’s mission and feel like they’re contributing to something larger than themselves.
Election Insight:
During my participation in the 2024 Assembly Elections from the 32-Pampore Constituency, I saw firsthand how deeply communities connect with value-based leadership. When people see leaders—whether political or organizational—upholding shared values, it inspires participation and deep emotional investment.
4. Improving Decision-Making and Accountability
Clear core values serve as a compass for decision-making. Employees don’t need to guess what the “right thing” to do is—your values guide them. This clarity boosts confidence, autonomy, and accountability, allowing individuals to take ownership of their roles. When people are trusted and empowered, engagement follows naturally.
5. Driving Recognition and Motivation
Recognizing employees who embody core values can amplify their motivation. Whether it’s through awards, promotions, or a simple shout-out, celebrating value-aligned behavior reinforces a positive work environment and makes employees feel valued. This emotional recognition is often more powerful than financial incentives.
6. Facilitating Internal Alignment Across Departments
Organizations that operate across multiple regions or sectors often struggle with alignment. Core values serve as a unifying language that binds teams across geography and hierarchy. When everyone—whether in marketing, operations, or finance—speaks the same values, collaboration becomes seamless, boosting collective morale and engagement.
7. Encouraging Long-Term Commitment
Values-driven organizations enjoy lower turnover and higher retention rates. When employees feel a strong alignment between their values and the company’s, they are more likely to stay, grow, and evolve with the organization. This long-term engagement creates a stable, high-performing workforce.
8. Elevating Leadership and Mentorship
Leaders who live the core values set a strong example. They become mentors by modeling ethical behavior and decision-making. When leaders embody the values they preach, they inspire trust and admiration—both essential ingredients for engaging teams and nurturing future leaders.
Final Words from Dr. Bilal Ahmad Bhat
As the author of 28COE Core Values – Edition 1, I have had the honor of working with thousands of individuals and organizations across continents who practice these values daily—some even feature them proudly in their office spaces and websites. These values are not abstract theories; they are real tools for transformation. Employee engagement is not a checklist. It is a culture, and core values are the culture’s DNA.
I invite leaders around the globe to invest not just in products or profit margins, but in people—and that begins with values. Whether you’re a startup in Southeast Asia, a university in Europe, or a social enterprise in Africa, your core values can be the game-changer for deeper engagement and sustainable success.