18 Insightful Employee Engagement Statistics for 2020

More than two-thirds of employees around the world have lower-than-average engagement levels. This may not seem like a huge problem at first sight, but instilling the right corporate culture enhances the personnel’s self-esteem, their welfare, and productivity.

Happy and healthy employees are a priceless resource for any company. Increasing employee engagement is a strategic step in any business’ strategy. Whether you seek to hire new staff or want to see increased productivity of your existing workers, our list of employee engagement statistics will surely help you choose the right path.

 

Employee Engagement Stats (Editor’s Choice)

  • 85% of employees around the world don’t feel engaged in the workplace.
  • Poor employee engagement costs businesses US $450-500 billion a year.
  • Good company culture increases revenue by up to four times.
  • 47% of American workers say their job is just something they do for a living.
  • 43% of employees feel unsatisfied with their career path.
  • 37% of employees say recognition is the most important factor in their work engagement.

 

Employee Engagement Data

 

1. 85% of employees don’t feel engaged in the workplace.

The striking data is part of a recent Gallup report, which also revealed that 17.5% of employees are actively disengaged, and only 15% are engaged. Engaging their staff seems to be a serious challenge for most companies, but it’s worth the effort since highly engaged employees work more effectively and demonstrate higher productivity. Some of the ways to boost corporate morale include praising good performances, strengthening communication, and hiring HR managers who know how to encourage engagement.

(Gallup)

 

2. Poor employee engagement costs businesses US $450-500 billion a year.

Engagement statistics from 2017 show that disengaged workers have 37% higher absenteeism and 49% more accidents. They also make 60% more errors than their work-engaged peers. As a result, the cost of disengaged employees has already reached $500 billion in yearly lost productivity.

(Mental Health America)

 

3. Organizations in the top quartile of engagement see 21% higher profitability.

Companies with high employee engagement have better client relations, higher productivity, improved retention, and stronger overall performance. Successful companies focus on employee engagement and productivity to provide all employees with the best learning and tools available to do their job.

The latest employee engagement statistics reveal that corporations or work units with strong employee engagement levels typically achieve a 21% higher profitability than units in the bottom quartile. Corporations with high employee engagement also score 17% better on the productivity scale.

(Gallup)

 

4. Good company culture increases revenue by up to four times.

Corporations that have a strong corporate culture that supports all-around leadership initiatives and appreciate their employees can increase their revenue by as much as 682% vs 166% for companies without proper corporate culture in place. This means a prosperous company culture can achieve over four times more revenue.

Statistics on employee engagement reveal that 47% of the population actively looking for a new job, pinpoint company culture as the fundamental reason for wanting to leave, so if you want to boost your employee retention statistics, engagement, and profitability, developing a strong company culture should be one of your main objectives.

(Forbes)

 

5. Just 12% of workers leave their job because they want more money.

According to employee engagement facts, 89% of employers think employees who quit for another position are doing so because of a larger paycheck. In truth, just 12% of workers leave for more money. Office life, enjoying work, and corporate culture all play a bigger part in this choice-making process.

(Medium)

 

6. With a good onboarding process, 69% of workers are more likely to stay with a company for three years.

Employee engagement data shows that building a powerful onboarding program is the best way to welcome and engage new employees. An effective onboarding process immediately integrates new team members and provides them the tools to be successful.

Still, many corporations fail to embrace new team members with a comprehensive program; 22% of businesses have no formal onboarding program at all, 35% of corporations spend $0 on onboarding, and just 37% extend their onboarding programs beyond the first month.

(SHRM)

 

7. According to employee engagement data, team leaders and managers are responsible for 70% of team engagement variations.

Trust in the workplace matters, and employees expect their managers to be transparent, proactive, and supportive about changes that may impact them. Otherwise, employees will not feel confident or committed to their managers. So, it’s no surprise that employee prosperity is directly impacted by a manager’s capability to manage; engaged employees are more productive, they perform better, and motivate their colleagues to do the same.

(Gallup)

 

8. Just 20% of US employees have discussed goal achievement with their manager in the last six months.

Workplace statistics find that highly engaged team members are 2.5 times more likely to receive weekly feedback than disengaged employees. People who don’t receive recognition for their work every week are twice as likely to say they would leave their company than those who do. Maintaining high levels of employee engagement requires continuous conversations and daily employee feedback.

(Gallup)

 

9. 47% of American workers say their job is just something they do for a living.

Americans are divided on whether their job is purely a source of income or a more purposeful aspect of their lives that gives them a sense of identity, work statistics show. To increase engagement, employees must feel a sense of purpose at work. Another 47% of the US employees say their job is just what they do for an income, while the rest of those surveyed either have multiple jobs or did not respond to this question.

(Source: Pew Research Center)

 

10. One in three professionals says boredom is the main reason to leave their jobs.

According to employee engagement statistics, 33% of those shifting jobs say monotony and the desire for new challenges are the primary reasons they are leaving. Making sure employees have enough challenges and diversity in their workday is one of the most effective retention tools. Without the ability to improve and develop, employees lose a sense of purpose and motivation and look for a job elsewhere. So, increasing employee engagement can, and will, benefit your business greatly.

(Korn Ferry)

 

Employee Engagement and Productivity Statistics

 

11. Just 29% of workers are satisfied with career development opportunities.

30% of employees consider career advancement opportunities for learning and personal improvement extremely important. The chance for professional advancement in the workplace is notably significant to the younger generations; up to 87% of millennials in the workplace think development is important.

The significance of professional development to the overall employee engagement level is unquestionable, and managers need to provide tools and sources to support their employees’ professional development, career development statistics imply.

(SHRM)

 

12. 43% of employees feel unsatisfied with their career path.

When an employee starts a new job, they rarely do that planning on leaving soon. But this happens sometimes. The reason? According to analysis, when employees leave a corporation, it’s usually because they feel that the company has failed to invest in them. Businesses that take time to show their staff how they fit into the bigger picture have a stronger chance of keeping their employees around.

(Addison Group)

 

13. Thriving employees are four times more likely to work for a company that gives them pay and promotion opportunities.

According to the latest employee development statistics, thriving employees are three times more prone to work for a corporation that facilitates quick decision-making (81% vs. 26%) and gives them the means and resources to do their work effectively (82% vs. 30%). More than half (56%) of employees appreciate personalized and streamlined professional improvement systems that help them grow their skills and train them for future jobs.

(Mercer)

 

14. For 37% of employees, recognition is most important in their work engagement.

Employee morale statistics find that 43% of workers prefer to receive recognition alone, on a one-to-one basis with a manager. 10% would rather get it openly in the presence of their peers, while 9% appreciate recognition in writing. 84% of engaged employees were recognized the last time they excelled at work, compared to only 25% of actively disengaged employees.

(Medium)

 

15. 69% of workers would perform better if they were more appreciated.

Employee engagement statistics show that, when employees complete a project or a significant assignment, they expect to be recognized for their hard work. The benefits of engaged employees cannot be experienced without proper recognition and nearly two-thirds of workers expect that and believe it would improve their overall performance. Recognition raises morale, increases employee productivity, and is a verified driver of employee engagement. 

(Hubspot)

 

16. Engaged organizations and business units have 70% fewer safety incidents.

Engaged employees are more mindful of their surroundings, engagement statistics highlight. They are aware of security measures and are conscientious about keeping their peers and clients protected. In fact, highly engaged workers report 70% fewer security incidents and 58% fewer patient safety accidents.

(Gallup)

 

17. Hourly employees are 10% less engaged than salaried staff.

Hourly employees have different needs and considerations compared to those on salary, employee engagement stats reveal. They feel companies should implement solutions that fit appropriately to their needs. This is a difficult task that is sometimes borderline impossible.

(Gallup)

 

18. 60% of HR leaders believe their function will become irrelevant if it doesn’t modernize.

With employee engagement importance being neglected by so many HR departments, the future of these divisions in larger organizations is uncertain. More than half of experts in the industry warn that those who don’t adapt to the new standards may become irrelevant in the foreseeable future.

(Economic Times)

 

FAQ

 

How many employees are engaged at work?

According to data provided by Gallup, just 15% of employees around the world are actively engaged in their work. The study also reveals that US employees top the list with 33% of them feeling engaged at work, which is more than double the global employee engagement average.

 

What percentage of employees are actively disengaged?

According to the same study, 17.5% of employees are actively disengaged. This means less than one out of every three employees feel enthusiastic about their work and company. These people are easy to spot – they don’t enjoy turning up to work, they’re dissident in meetings and in internal communications, they have a bad attitude, or they’re missing work often, Gallup points out.

 

Why are employees not engaged?

Professional development is meaningful to employees, but many don’t feel their development is significant to the people who manage them. Studies on employee engagement show that employee engagement is driven by three components – strong communications and relationships within the company, interest in employee happiness, and a strong emphasis on employee development. Most people tend to disengage once they stop feeling their work is valuable.

 

What is a good employee engagement rate?

In order for a company to be regarded as one with a good work engagement rate, it should be standing at around 72%. This is far from the averages of today and not many businesses can achieve this level of employee engagement. The employee engagement score is extremely important as it impacts practically every aspect of the organization, from turnover rates to customer satisfaction, sales, and profit. 

 

What is the value of employee engagement?

Employee engagement is extremely important since it can save businesses a whole lot of money. These savings come in the form of reduced turnover rates, increased productivity and performance, and more retained clients. Eventually, all these elements result in higher profits.

 

Are engaged employees more productive?

Research shows that staff who feel engaged at work are 17% more productive than their peers. Engaged employees are definitely good for business, as their personal gain is not their only driver. Higher work engagement improves focus and motivation, which in turn increases productivity. 

 

What makes an employee highly engaged?

Highly engaged employees find fulfillment in their work. They have good managers, their career prospects are bright, their salary and benefits are satisfactory, and they are provided with the right tools for the work, among others. Basically, a satisfied worker is more than likely a highly engaged one.

 

How to engage employees in the workplace?

It is a manager’s job to keep workers passionate about their job, ensuring they come in every day eager to work. A manager also needs to find out how they prefer to receive feedback, how they expect to be recognized, what they value most about their office environment, and what they’re passionate about. To this end, corporations develop employee engagement strategies for their specific teams and continuously keep track of key indicators and developments.

 

Conclusion

Organizations that think they’re unaffected by employee engagement should take another look, as they are more than likely wrong.

Our list of employee engagement statistics clearly shows that lack of employee engagement is a huge problem in the business world of today and one that might cost your corporation a lot of money, including through lost motivation, productivity, and profits. 

Remember: engaged employees are often the difference between success and failure for most businesses.

 

Sources:

Gallup

Mental Health America

Gallup

Forbes

Medium

SHRM

Gallup

Pew Research Center

Korn Ferry

SHRM

Addison Group

Mercer

Medium

Hubspot

Gallup

Gallup

Economic Times