Employee engagement is the key to increased

• productivity,
• job satisfaction,
• sales,
• and revenue.

When workers are actively engaged in the workplace, they arrive at work optimistic and ready to go above and beyond to meet the company's objectives.
However, driving employee engagement is not easy, especially now that employees are adapting to changes brought on by the pandemic.
Here, we'll dive into employee engagement statistics to help you understand the value of employee engagement and how to improve your employee engagement process.

✨ What is Employee Engagement?

Employee engagement is the level of connection (mental and emotional) employees have to their work, organization, and teams.

Some factors contributing to employee engagement include camaraderie, employee recognition, office safety, pride in their work, etc.

📊 Basic Statistics on Employee Engagement

Engaged employees are passionate and highly invested in their work. This usually helps them put in the effort and bolsters productivity.

Non-engaged or Disengaged employees, on the other hand, either put minimal effort into their jobs and deliver subpar results. This could have consequences on workplace safety, productivity, and organizational growth.

If you're having trouble grasping the term, these employee engagement examples might help.

• Europe has employment engagement levels of only about 52%. This is the lowest level of employee engagement globally from the 2021 Global Employee Engagement Benchmark Study. (NewsDirect).
• In 2019, the U.S. had a peak in employee engagement percentage since tracking began in 2000. In monitoring employee engagement in the U.S., 2019 had a record of 35% - up from 34% recorded in 2018. (Gallup). 
• According to two out of every three employers, maintaining employee engagement and morale during the pandemic has been challenging. A subset of these companies are having difficulties with employee productivity, leave regulations, and company culture. (Society for Human Resource Management)
• Latin America is the highest-scoring region for employee engagement. Approximately 60% of employees in the Latin America region report having a positive employee experience. (NewsDirect)
• About 85% of employees are actively disengaged or not engaged at work globally. This could have significant economic reparations on the productivity and performance of several countries. (Gallup).
• The 3 companies with the highest employee engagement record are Salesforce, Hilton, and Wegmans Food Markets Inc. Because of this, they have ranked highly as one of the best places to work. (Great Place to Work).
• The job functions that have the most disengaged employees are sales, construction, and office workers. These roles only have a 12% engagement rate making them the lowest overall across job roles. (Oak) 

📈 Statistics On the Effect of Employee Engagement 

When employees lose interest in their job, they get dissatisfied, productivity drops, and some might even consider leaving the company. This metric that H.R. and other key stakeholders have to measure and flag before it becomes a problem.

Does Employee Engagement Have an Effect on Productivity?

• Employee engagement can significantly affect the productivity of an employee. Statistics have shown that you can notice the effect of employee engagement on an individual's productivity across organizations.
• Employees with higher employee engagement are 17% more effective than employees who do not have high employee engagement. (Forbes)
• Improving employee engagement can reduce absenteeism by about 41%. Organizations that treat employees as stakeholders and focus on performance management will be able to improve their overall performance. (Applause) 
• Recognition is the most significant factor (37%) that employees say affects their productivity and can help them be successful. Recognition at work leads to improved motivation, self-confidence, and overall engagement. (Smarp)
• About 69% of employees are ready to work harder if their bosses appreciate their efforts more. Showing concern, appreciation, and support are great drivers to commit your employees to your organization. (Hubspot)

Employee Engagement and Profit Statistics

Disengaged employees aren't good for business, and it can tell on an organization's financials. If a considerable number of employees in an organization are disengaged, you will start to see the effects on the company's profitability.

Just as disengaged employees can affect an organization negatively, statistics have shown that highly engaged employees can significantly improve the outlook of an organization.

• Companies with higher employee engagement are 21% more profitable than companies that scored lowest on employee engagement. (Gallup)
• During a seven-year study period, it was revealed that companies with more engaged employees increased their revenue by 2.5x as much as companies with less engaged workers. (Bain & Company)
• Putting money into employee engagement by just 10% can have remarkable effects on your company's profitability of up to $2,400 per employee every year. (Talentculture) 
• Companies with an excelling corporate structure achieve more than 400% revenue growth. Workplace culture is tied to engagement in the workplace because it creates a delightful work environment where work colleagues can thrive together. (Forbes)
• 33% of employees leave their jobs because they are bored with searching for new challenges. Boredom comes when they are no longer motivated to continue what they do, indicating low employee engagement. (Kornferry)

Impact of Employee Engagement On Satisfaction

Even though employee engagement isn't the same as happiness or satisfaction, they are all connected.

It is possible to have happy employees that don't get stimulated by their work and only put in the bare minimum.

Engagement can get employees excited about their work and give them the drive to do better. In the long run, this will affect their satisfaction levels.

Therefore, keeping employees satisfied can impact employee engagement and vice versa.

• Employees who feel respect from their superiors report a job satisfaction level of about 89% and improved enjoyment. Showing employees appreciation makes them appreciate their organization and improves engagement by 55%. (Harvard Business Review)
• In companies where employees experience average to severe burnout, there is a 376% decrease in the chance of having engaged employees. (OC Tanner)
• Flexible work environments are a priority for many employees, but more men than women. About 44% of employed women would contemplate leaving their current job for a more flexible work environment than 39% of men. (GlobeNewswire)
• About 30% of American employees see their jobs as something to get them by. This shows the level of dissatisfaction with their careers which wouldn't be the case if they felt an engagement with their organizations/jobs. (Pew Research Center)
• 77% of employees say that solid work culture in their organization allows them to do their best work, impacting their overall satisfaction. The same piece shows that 63% of employees recognize the impact of culture on an organization's success. (P.R. Newswire)

How Employee Engagement Relates to Retention

Hiring new employees involves a lot of time and resources, sometimes putting a strain on the recruitment team if there's a severe gap. High turnover rates typically mean the employees aren't engaged.

Employee engagement is an essential part of employee retention. Check out these statistics below to see the relationship between employee engagement and retention.

• Organizations that have engaged teams have a customer rating that is 10% higher than disengaged teams. This increases the chances of turnovers, costing employers about 1.5 times the employee's original salary. (Forbes)
• In 2030, the U.S. will lose about $430 billion yearly due to low talent retention. A great way to combat this and mitigate against this loss is to improve employee engagement, which will positively affect retention rates. (Holaspirit)
• Effective employee engagement initiatives have helped improve employee retention for 30% of businesses in the U.K. This shows that taking steps to improve employee engagement continues to work in keeping employees at organizations. (Roberthalf)
• Employees who see a purpose or significance in their work are 3x more likely to stay with their companies. If employees know the importance of their work, they feel invested in the company and would rather stay. (New York Times).
• Employees who feel respect from their superiors are 110% more likely to stay at their jobs than those who don't. The respect instills a sense of connection and recognition of their work to the entire direction of the organization. (Havard Business Review)
• Employee engagement is a great way to improve retention in your organization. About 77% of companies concentrate on employee engagement to increase the retention rates in their organization. (LinkedIn)

👀 Statistics on Factors Surrounding Employee Engagement

You must understand many factors surrounding employee engagement before combating it and improving it in your organization. Different organizations have rules that apply to each, so demographics can help you understand your path better.

Check out the statistics on what causes employee disengagement, the demographics of employee engagement, and how to improve employee engagement in your organization.

What Causes Employee Disengagement?

• Just 11% of employees get recognition from their bosses weekly. Lack of recognition from bosses is one of the top reasons for employee disengagement, and this statistic shows that many bosses aren't doing enough to commend their subordinates. (Authentic Recognition)
• About 75% of employees leave their jobs because of their bosses and not because of the job or its duties. If bosses don't make employees feel like part of the team and welcome, they can become disengaged and later leave. (LinkedIn)
• Perhaps the most obvious reason people disengage from their work and leave their organization is unsatisfactory pay. Truth is: This is not the most important factor as only 12% of employees go for more money. (Forbes)

Employee Demographics and Employee Engagement

• About 52% of gender minorities feel engaged in their workplace. Despite a noticeable decrease in the engagement gap between men and women over the years, other minorities are the least engaged across professional profiles. (Quantum Workplace)
• Approximately 25% of Gen Z respondents in a Swedish study aren't satisfied with their work-life balance, even though they spend the least time in the office. Organizations need better to consider the value of work-life balance on engagement. (Commercialcafe)

How To Improve Employee Engagement

Increasing employee engagement isn't an easy task involving getting employees to open up. Less than 50% of workers are already comfortable talking to their boss, especially in a private office.

An essential part of this is making the workplace welcoming for everyone. An open floor plan is a great way to achieve this, and it has worked excellently for Google and Facebook. Workers that have space for connecting with other coworkers are 1.5x more engaged.

• About 70% of employees say that their morale, motivation, and overall engagement would increase if their managers said "thank you" often. (RewardGateway)
  

Invest in the training and advancement of your employees. It is one of the easiest ways to encourage engagement. Make growth and improvement a part of the job and acknowledge your employees' progress.

• Companies that invest in training their employees have seen a 24% higher profit margin. This applies to companies that spend as low as $1500 on training efforts yearly per employee. (HuffPost)
  

• Positive engagement with their line managers can lead to engagement levels of about 52%. On the other hand, employees with negative emotions are disengaged approximately 10x than those who feel positive emotions with manager interactions. (DaleCarnegie)
  

• Onboarding is a critical factor in determining the first connection an employee has with an organization. Great employee onboarding gives companies a 2.5x revenue growth and 1.9x profit margin compared with organizations with poor onboarding. (BCG)

🔮 Employee Engagement Trends

• On average, older people have higher levels of engagement with their work across several industries. Employee engagement among those aged 40-49 and 50 or above is considerably higher than those aged 30-39. (ResearchGate)
• According to projections, about 75% of people experience fewer distractions working remotely, which will increase. In the coming years, the focus will increasingly shift towards flexibility in the workplace. As the pandemic has shown us, many job functions do not require people to be in the office every day. (Flexjobs)
• The cloud will begin to take more ground as remote working becomes the norm. H.R. and other job roles will be looking to the cloud to solve many of their workplace challenges. About 35% of companies consider developing plans for monitoring remote productivity with the cloud. (PWC).
• Wellness and health will become a key driver for employee engagement as people become more aware and prioritize health. About 85% of companies already say that their wellness programs support employee engagement. (HRDrive)
• Employees will become the voice of their organizations as they will play a more prominent role in corporate branding. Employees get 561% more engagement on messages shared on social media than when the company shares the same news. (Forbes)

❗️ How Important is Employee Engagement?

There is no downside to employee engagement because it benefits your employees and the organization. Some of the key benefits of improved engagement include:

• Decreased absenteeism at work
• Improved service delivery and interaction with customers
• Better team productivity
• Improved morale of employees

Also, check out these statistics that show the benefits and importance of employee engagement:

• Employees who feel engaged in their organization are less likely to be obese or have chronic diseases. This shows the far-reaching impacts of employee engagement and the toll it can have on the health of individuals. (Gallup)
• Better employee engagement can lead to more improved home life. Positive work experiences and beliefs in what they are doing make individuals confident in sharing the experience with significant others and loved ones for better companionship. (ScienceDaily)
• Engaged employees care significantly about their jobs, which often shows in their interaction with customers, improving customer service. About 70% of Americans want to spend 13% more with companies that provide good customer service, improving revenue. (Marketingcharts)

The faster you can implement an employee engagement plan, the quicker you can start experiencing all of these benefits and reduce the strain on recruitment and retention. 

➡️ Go From Engagement to Enablement

Now that we've established that low employee engagement can be harmful to businesses, you understand why you should work to improve engagement in your organization. After all, engaged employees are more productive, perform better, and happily contribute to a company's growth.

Having an employee engagement program is essential, and you can improve it even more by leveraging technology and implementing a well-designed structured engagement process that is automated.

Allow us to help you plan your employee engagement strategy to enhance better retention, increase your revenue and create a more energetic workforce. Learn how to go beyond engagement and into enablement by using our platform.

Sources

News direct | Global Employee Engagement Study Finds Only Half of Employees Happy at Work

Gallup | 4 Factors Driving Record-High Employee Engagement in the U.S.

Society for Human Resource management | Survey: How COVID-19 is Changing the Workplace

Gallup | Dismal Employee Engagement Is a Sign of Global Mismanagement

TalentCulture | 6 Eye-Opening Employee Engagement Statistics

Forbes | Culture Is A Company's Single Most Powerful Advantage. Here's Why

Kornferry | Breaking Boredom: Job Seekers Jumping Ship for New Challenges in 2018, According to Korn Ferry Survey

Harvard Business Review | Half of Employees Don't Feel Respected by Their Bosses

OC Tanner | 2020 Global Culture Report O.C. Tanner Institute

Global Newswire | Yoh Survey: Excluding a Raise, Flexible Work Environment and Better Benefits Top the Reasons Employed Americans Would Accept a New Job Offer

Pew Research Center | The State of American jobs: 3. How Americans view their jobs

P.R. Newswire | Eagle Hill's New Workplace Culture Survey Finds 63% of Employees Say Business Culture Directly Impacts Organizational Success

Oak | 25 Employee Engagement Statistics You Wouldn't Believe

Great Place to Work | Fortune 100 Best Companies to Work For® 2019

Forbes | Four Lessons From Companies That Get Employee Engagement Right

Holy spirit | 52 Ideas to Improve Your Company's Employee Retention Rate

Gallup | The Right Culture: Not Just About Employee Satisfaction

Bain & Company | The chemistry of enthusiasm

Applause | How to Lower absenteeism by 41% with Employee Engagement

Smarp | 8 Employee Engagement Statistics You Need to Know in 2022 [INFOGRAPHIC]

Hubspot | 11 Eye-Opening Statistics on the Importance of Employee Feedback [Infographic]

Roberthalf | Employers fear 4.5m workers could be on the move this year

New York Times | Why You Hate Work

LinkedIn | 2020 Global Talent Trends

Quantum Workplace | 2019 Employee Engagement Trends Report

Authentic Recognition | How Frequently Should You Give Recognition?

LinkedIn | Employees don't leave companies, they leave Managers

Forbes | To Attract The Best, First Understand Why They Leave

Commercial cafe | Work-Life Balance Survey: Gen Z, Millennials Are the Unhappiest Generations

RewardGateway | Implementing Continuous and Social Recognition with Reward Gateway

HuffPost | Not Investing in Employee Training Is Risky Business

DaleCarnegie | White Paper: Emotional Drivers of Employee Engagement

BCG | From Capability to Profitability, Realizing the Value of People Management

ResearchGate | Older and More Engaged: The Mediating Role of Age-Linked Resources on Work Engagement

Flexjobs | 2018 Annual Survey Finds Workers Are More Productive at Home

PWC | PWC HR Tech Survey 2022

HRDrive | Study: 85% of companies say wellness programs bolster employee engagement

Forbes | The Key To Increasing Your Brand's Reach by 561%

Gallup | In U.S., Engaged Employees Exercise More, Eat Healthier

ScienceDaily | Employees Who Are Engaged In Their Work Have Happier Home Life

Marketing charts | 7 in 10 Consumers Will Spend More for Good Service