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Employee Engagement Statistics

Last updated: 23.09.2022
Author: Marija

While employee engagement seems like a pretty abstract concept, it has very tangible consequences for a business in terms of revenue and profit. So, how do you define it and measure it exactly, especially in these post-pandemic times of remote work? These employee engagement statistics are a good place to start, offering some insight into what you should do to maintain an engaged workforce. 

So, let’s have a look at just what it is that makes the employees want to show up to work and do their best.

Employee Engagement Statistics (Editor’s Choice) 

  • Disengaged workers cost the US economy up to $605 billion a year (Oak)
  • 85% of workers are not engaged at work. (Oak)
  • 74% of disengaged employees are actively looking for a new job. (Gallup)
  • Daily virtual meetings are exhausting for 38% of remote employees and reduce engagement. (HR Cloud)
  • Disengaged workers make 60% more mistakes (Champion Health)
  • 84% of highly engaged workers got recognition for effort. (HR Cloud)
  • Engaged employees reduce the absenteeism rate by 41%. (Oak)
  • 40% of workers that don’t get adequate training might quit within the first year. (Hire Book)

Employee Engagement and Productivity Statistics  

1. The cost of disengaged employees in the US is over $600 billion per year.

The sources vary on just how much money is lost due to disengaged workers but the numbers go from $450 to a whopping $605 billion per year. A single disengaged worker costs the company $3,400 in lost productivity for every $10,000 in salary, suggesting that investing in engagement strategies seems a reasonable way to cut costs.

(HR Cloud, Oak)

2. The global percentage of actively disengaged employees has dropped from 29% to 17% since 2009. 

A growing number of companies are embracing employee engagement software to monitor engagement and improve work conditions. The result is a 12% decrease in employee disengagement in just over a decade, as employee morale statistics confirm. 

(Oak, HR Cloud)

3. Up to 85% of global employees are not engaged at work.

A massive amount of employees are either not actively engaged, or are actively disengaged at work, leaving a meager 15% who are truly engaged in what they do. This means that the majority of employees are just going through the motions, and/or doing the bare minimum.  

(Oak)

4. Some 43% of engaged employees report getting feedback at least once a week.

Meanwhile, only 18% of disengaged workers can say the same. These staff engagement statistics further underscore the importance of communication between management and employees for motivation among staff. 

(Oak)

Importance of Communication Between Management and Employees

5. Office workers are among the most disengaged with only a 12% engagement rate.  

Office workers share this very unenviable engagement rate with sales employees and construction workers. Among the main culprits for this low engagement level are bad communication and ineffective company structure, especially among international 

(Oak)

6. Work statistics show that 90% of leaders believe engagement strategy impacts their business.

Yet only 25% of them have an engagement strategy. Most of them don’t even know the attitude of their employees towards their work or company. Regular surveys of employee engagement and productivity would be a good start to that end. 

(Oak)

7. Only 16% of employees use technology to monitor engagement.

Less than a fifth of employers use technologies such as performance management software for monitoring employees’ levels of engagement, workplace statistics suggest. Popular methods for that include time tracking, virtual clocking in, following emails, and monitoring internal chats. 

(Oak)

8. Employee engagement has five indicators.

While employee engagement is generally hard to define, there are five indicators that could help you measure it. They are as follows:

  • Workers should be feeling safe at work.
  • They must have clear and precise job descriptions.
  • They should get support from management.
  • Employees must know knowing where the decision-making authority lies.
  • Workers should be informed about progress, and changes in policies and procedures.

Employee engagement data shows that employers should consider these factors even before starting their recruitment process to ensure subsequent engagement. 

(Apollo Technical)

Stats on the Importance of Employee Engagement

9. 74% of disengaged workers were looking for new job opportunities in 2021.

This compares with just over half (55%) for non-engaged workers and less than a third (30%) for engaged employees. While engaged employees could also change employment if the right opportunity crops up, they are still much less likely to do so, or only leave for an exceptional job offer, career development statistics show. 

(Gallup)

10. Highly engaged employees increase profitability by 23%. 

This is one of the main benefits of engaged employees from a business perspective. It is simple logic that if the employees work better, faster, and with fewer errors, the company’s chances of generating higher revenue, and by implication, earning more, rise as well. 

(Oak)

11. Daily virtual meetings are exhausting for 38% of remote workers.

Engagement can be endangered by exhaustion as well. Especially in the new conditions that turned the way we work upside down in 2020. Virtual fatigue and meeting burnout was something 38% of employees felt and 30% reported being stressed over.

Employee engagement and productivity statistics reveal that while staying connected is important, daily meetings were too mentally draining, and reducing the practice to once a week yields better results.

(HR Cloud)

12. Engaged employees reduce the absenteeism rate by 41%.

Engaged people come to work more often, and take fewer sick days and fewer vacation days. There is little need to train their replacements or delegate their duties. Employee retention statistics meanwhile prove that getting actively engaged employees ensures there is an 18% decrease in staff turnover.

(Oak)

13. Employee development statistics show that up to 84% of highly engaged workers got recognition for their latest extra effort.

For some 37% of the workforce, personal recognition is the most important motivator, meaning, it’s an essential tool for increasing employee engagement. Among the actively disengaged workers, only 25% received recognition for their successful work.

(HR Cloud)

14. Only 22% of companies know why their employees are disengaged.

A survey of 600 executives showed that less than a quarter of companies can track and reveal the reasons behind the lack of employee engagement. This means that the channels of communication between managers and the workforce are effectively closed and that executive staff needs training in promoting employee engagement strategies to improve company culture.

(Oak)

15. Employee morale statistics show that 50% of workers would take a salary cut for a job they enjoy.

Money is by no means the morale booster people think it is. Another survey shows that 41% of workers would agree to a lower salary to work for a company that cares about their well-being.

(Champion Health)

16. 40% of workers that don’t receive adequate training are likely to quit within the first year

The simple truth is that proper training makes employees more engaged, and engaged workers are less likely to look for a new job. Employee engagement facts show that one way to start on the right foot is to use onboarding software, which could make the first few months on the job less stressful for new hires. 

(Hire Book)

17. Some 47% of people looking to switch jobs do so because of bad company culture.

Corporate employee engagement is directly linked to corporate culture. This is not an abstract concept either — companies boasting good culture enjoy more than four times the revenue of those with poor company culture. Naturally, those are also the companies with high employee engagement since better company culture translates into a more pleasant work environment, higher job satisfaction, and better employee retention. 

(HR Cloud)

18. 33% of workers leave their jobs in search of new challenges.

Employee development statistics show that 5,000 surveyed professionals said boredom and the need for a new challenge would be their number one reason to look for a new job. Both employee engagement levels and retention depends as much on good work conditions as on the ability of workers to move and grow, broaden their skills, and advance. 

(Oak)

19. Disengaged employees are 48% more likely to be stressed out.

The absence of employee engagement doesn’t affect only the productivity of a company, but also impacts the mental and overall health of employees. In fact, staff engagement statistics show that highly engaged workers have up to 53% fewer missed days related to health issues. 

(Oak)

The Bottom Line

Having an engaged staff is essential for the productivity of any organization. And it’s a two-way street, it depends as much on the workers as on the employers. Increasing employee satisfaction is not just about rewards, it is mostly about communication and a positive environment that allows workers to thrive and innovate, employee engagement statistics show. 

FAQs

Why is employee engagement important?

Studies on employee engagement show that employee engagement is important as it keeps the workers from changing jobs, lowers the company turnover rates, and with that, the cost of hiring new workers. A high employee engagement score boosts productivity, increases the quality of work, and ultimately, brings in more profit.

(First Up, We Thrive Net)

How do you engage employees in the workplace?

There is a multitude of ways of engaging employees in the workplace after their basic work needs are met, such as timely and adequate salary, job safety and security, and human respect. According to statistics on employee engagement, a company should:

  • Give employees the tools and equipment they need.
  • Take time to get to know them on a personal level.
  • Make sure they have space for growth.
  • Foster teamwork and good relations.
  • Include them in reports of the company’s successes and failures.
  • Recognize their efforts.
  • Give them enough freedom and responsibility.
  • Communicate.

As a way of rewarding and boosting engagement, a company can use any number of employee engagement activities, for example, throwing parties, having company lunches, training, sports events, team building games, and competitions, and introducing recognition rewards.

(WhenIWork, Nutcache)

What is the value of employee engagement?

The value of high employee engagement lies in increased productivity and revenue. Those that are engaged raise productivity anywhere from 12% to 22%, according to statistics on employee engagement. It also results in better retention and lower turnover, less absenteeism, higher work dedication and innovation, improved customer service, fewer work accidents, and better workplace morale. 

(Archivers, Emplify)

What is a good employee engagement rate?

A good employee engagement level is anything above 50%. Most companies stateside, however, fall behind, with only 36% of employees in the US reporting that they feel engaged in their work.

(Apollo Technical)

What percentage of employees are actively disengaged?

Globally employee engagement facts show there are 12-13% absolutely actively disengaged workers in an average workplace. But what does ‘actively disengaged’ mean? Employee engagement research shows this is a disgruntled worker that not only isn’t giving their best, or the bare minimum, but is visibly unhappy and spreading negativity across the entire office. 

(HR Cloud, Recruiter)

How many employees are engaged at work?

The authority on engagement stats, Gallup’s State of the Global Workplace research, shows there are only 15% of actively engaged employees in an average workplace. The rest are doing the required minimum without emotion, or even actively disrupting workflow and displaying a negative attitude. 

(Oak)

Are engaged employees more productive?

Engaged employees are more productive as their motivation comes from a different place than the one of a disengaged worker. Their goals are aligned with company goals and they keep overall success in mind, according to work statistics.

Engaged workers also come up with new solutions and strategies faster. The result of employee engagement is increased personal and team productivity by over 17%. Good engagement is not only linked to better problem solving but also higher work morale which directly boosts productivity.

(Quantum Workplace, Engagedly, InSync)

Why employees are not engaged?

Employees are not engaged if they don’t love what they do. Sometimes the job gets boring over time and there are no new challenges or the possibility of advancement. Another reason for being disengaged is not feeling involved and invested in the company, which is often the result of inadequate communication, according to employee engagement stats.

Clearly, there are even more solid reasons for disengagement and that is when the worker’s basic needs aren’t being met in the right way, or at all. This can mean anything from regular pay and job security, to a safe environment or on the next level having the right resources and support, or work flexibility, as suggested by HR statistics.

(Your ERC)

Are healthy employees more productive?

Yes, healthy employees are more productive. They take fewer sick days and even vacation days and are less prone to burnout. Employee engagement statistics further show that having a good healthcare program and a solid benefits package is a motivator for more than 40% of workers to stick with a company, even at the cost of lower pay. 

(CDC, Champion Health)

Sources: Oak, Hire Book, Gallup, HR Cloud, Champion Health, Apollo Technical, First Up, We Thrive Net, WhenIWork, Nutcache, Archivers, Emplify, Recruiter, Quantum Workplace, Engagedly, InSync, Your ERC, CDC