Companies with clear strategic direction are the most successful at engaging their employees and are more productive, according research involving nearly 14,000 employees across Europe by global consulting firm Watson Wyatt.

Watson Wyatt's latest WorkEurope survey found engaged employees are highly committed and make a positive contribution, which results in superior financial performance for organisations and shareholder return.

Other drivers of engagement include employer communication, the attention given to customer focus within the organisation, performance management, and pay and other rewards.

"Business leaders who articulate the business strategy give employees a clear 'line of sight' to how they can best contribute to the performance of their company," said Andrew Cocks, a senior consultant at Watson Wyatt. "But the benefit goes beyond this. It helps to build trust in the company and its management, and creates a positive environment where all employees have well understood shared goals."