Last year has been a pretty scary year and has messed up a lot of things including a balance at the workplace. Studies suggest that employee engagement has been decreasing and due to the same, businesses have incurred a lot of loss. The biggest loss in productivity is caused by the disengaged employees of the companies.
These statistics can be very disheartening but you shouldn’t lose hope yet. The good news is that efforts to improve employee engagement have proved to show positive outcomes. This can have a direct impact on profits, retention, productivity, and customer experience.
To answer your queries about employee engagement, this article brings forth several employee engagement statistics that you must know in this year. These stats will help you figure out better ways to react to employee engagement. Scroll along!
Factors That Affect Employee Engagement
- Employees value their work and display loyalty to the employer due to the following reasons: Work (55%), salary (50%), and immediate supervisor (39%). (Addison Group)
- 68% of employees consider leaving their current job if they are not supported enough by senior employees (Staples)
- 92% of employees think that showing empathy is important to retain employees (Businessolver)
- Employees who are aged 30 to 39 in the United States show lower work engagement as compared to the employees aged 40 to 49 and 50+. (Sloan)
- Companies with good onboarding procedure increases hire retention by 82% and employee productivity by 70% (Glassdoor)
- 75% of employees have reported that they are much more productive at home. They elaborated that at home there are lesser distractions (74%), less commuting stress (71%), and lesser office politics (65%). (FlexJob)
- 85% of HR executives think that employee experience and engagement is a valuable metric. But, only 24% plan to prioritize it in the coming years. (KPMG, 2020)
- Companies are shifting to focus on holistic well-being to boost employee engagement and experience. Employees have reported positive emotions and 71% reported having experienced a lot of enjoyment in such environments (Gallup, 2020)
- Employees have reported that managerial support is one of the most crucial aspects of company culture and 71% might quit if some other employer-provided them with a flexible job schedule(ExecuSearch)
- 74% of employees tend to draw a correlation between culture and their ability to serve their customer base
- 77% of employees have agreed that a strong culture motivates them to do their best work.
- 64% of millennials have said that benefits are very essential when it comes to employer loyalty (Qualtrics)
- Workers who had access to collaborative work management software are 85% happier in the workplace.
Employee Engagement Statistics That You Need To Know
- 85% of employees are actively disengaged or not actively engaged at work. This means that only 15% of the employees are actively engaged. (State of the Global Workplace)
- In 2019, the engagement levels in the US reached a new high at 35%. (Gallup)
- A disengaged employee costs about 34% of their salary every year. (Forbes)
- 54% of customers have stopped doing business with an organization due to poor service. So, your employees must be engaged enough to be able to provide a better customer experience. (Accenture)
- The employee engagement levels are found in Latin America, at 74%. (Kicentric, 2020)
- The percentage of engaged employees has been on the rise. It was 59% in 2011, 65% in 2017, and by March 2020, the engagement levels were at 68%.
- The best way to engage employees is by leveraging HR technology. It is reported that cloud tools will continue reigning in the HR landscape. 75% of companies have at least one HR process executing in the cloud. (PricewaterhouseCoopers)
- 56% of respondents in Deloitte’s Global Human Capital Trends Survey have said that companies shall become a social enterprise within 3 years. (Deloitte)
- The average number of employees who are disengaged at work has been at 70% for almost 2 decades now. (Gallup)
- 20.8% of employees believe that they are very engaged, 16.3% consider themselves to be fully engaged, and 31.3% are engaged but think that the company could do more to improve the employee experience. (Achievers)
- 76% of employees judge the impact on productivity and efficiency
- 31.6% of employees reported that they have average engagement in their present job (Achievers)
- 47% of employees feel underpaid, 44% dissatisfied with the benefits, and 43% unsatisfied with the career path (Addison Group)
- 1 in every 5 employees is both highly engaged and also at risk of burnout (HBR)
- US employers spend $2.9M every day searching for replacement workers (Zenefits)
- 62% of diversity and inclusion leaders believe that employee experience is a critical point, compared to 51% of all HR leaders (Gartner)
- Managers are responsible for 70% of the variation in employee and team engagement and heavily affect employee well-being (Gallup)
- The support of supervisor doubles the odds of employee engagement (Gallup)
- 47% of people who are actively looking for a new job pinpoint the company culture to be the main reason for wishing to leave (Hays)
- The top 3 factors that the employees value the most are trust, passion, and mentorship (HRDrive)
- 5% of employees have the opinion that their contributions do not make any difference.
- 44% of employees don’t know what the business goal is or do not understand what impact they have on the company (Ceridian)
- 63.3% of companies have reported that retaining employees is harder than hiring them (Zenefits)
Importance of Employee Engagement At Workplace
- Engaged workers are 21% more productive than disengaged workers. (Gallup)
- Gender diversity and employee engagement have a direct relationship. Women are generally more engaged than men. Also, employees, led by women, are more engaged than those led by men. (Gallup)
- Engaged employees are 27% more likely to give an excellent performance (Gallup)
- 62% of millennials wish to switch to the gig economy within the next 2 years. (Deloitte)
- 63% of HR professionals have said that they have an official employee engagement strategy in place. But only 42% employees agree to the same. (Wespire, 2019)
- Organizations with high and sustainable levels of engagement have operating margins up to 3 times higher than the companies with low engagement levels. (Willis Tower Watson)
- Employees who feel engaged and inspired are 125% more productive than others. (Bain & Company)
- Organizations that have a strong learning culture have 30 to 50% higher employee engagement and retention rates than those that don’t (Robert Half)
- An Ohio-based manufacturer increased profits by a margin of 24% after he measured employee engagement. (Emplify)
- Half of the employees are likely to sacrifice as much as 29% of their salary to take up a job they enjoy doing. (HRDive)
- 94% of employees would stay in their current role for a longer time frame if the company invested more in their professional development (LinkedIn)
Employee Engagement And Profits
- Companies that have engaged employees have reported better results. Engaged employees generally increase overall productivity by 17%, increase customer ratings by 10%, increase sales by 20%, increase profitability by 21%, and reduce absenteeism by 41%. (Gallup)
- The companies with engaged employees had 89% better customer satisfaction and 50% more customer loyalty (Hay Group)
- Engaged employees care about their jobs and their customers as well. They are reported to have provided a better customer experience.
- Engaged employees are better with customer loyalty since customers are willing to pay 16% more for friendliness and convenience (PwC)
- The US businesses lose $11 billion due to staff turnover every year
- The average company’s biggest productivity losses are caused often by less than 20% of disengaged or extremely disengaged employees.
- Companies that have more than average employee engagement, have exceeded the financial performance of their peers by 73% (University of Pennsylvania’s Wharton School)
- An organization was able to increase its production capacity by a whopping $3.8 million by collecting and acting on the feedback given by employees. (Emplify)
- Companies that have engaged employees outperform those without by 202% (Dale Carneige Training)
- Companies that have comprehensive training programs have a 218% higher income per employee than other companies that don’t provide any formalized training (ATD)
Employee Engagement Quotes
- “Highly engaged employees make the customer experience. Disengaged employees break it.” (Timothy R. Clark)
- “Employee engagement is the emotional commitment the employee has to the organization and its goals.” (Kevin Kruse)
- “Create caring and robust connections between every employee and their work, customers, leaders, managers, and the organization to achieve results that matter to everyone in this sentence.” (David Zinger)
- “To build a culture of engagement it is important to incorporate training on intrinsic motivation and employee engagement into management development programs.” (Kenneth Thomas)
- “The only way to do great work is to love what you do.” (Steve Jobs)
- “Everyone talks about building a relationship with your customer. I think you build one with your employees first.” (Angela Ahrendts)
- “Take time to appreciate employees and they will reciprocate in a thousand ways.” (Bob Nelson)
- “Always treat your employees exactly as you want them to treat your best customers.” (Stephen R. Covey)
- “The simple act of paying positive attention to people has a great deal to do with productivity.” (Tom Peters)
- “We think it’s important for employees to have fun.. It drives employee engagement.” (Tony Hsieh)
- “Turned on people figure out how to beat the competition, Turned off people only complain about being beaten by the competition.” (Ben Simonton)
- “Employees who believe that engagement is concerned about them as a whole person – not just an employee – are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability.” (Anne Mulcahy)
- “Employees engage with employers and brands when they’re treated as humans worthy of respect.” (Meghan M. Biro)
Evaluating the employee engagement stats is not enough. If you need to make considerable and long-lasting changes, then you need to make efforts. Team engagement activities, better interaction, and valuing your employees are some of the key ways to increase employee engagement at the workplace.
As the stats suggest, employee engagement is crucial to the success of the company and must be encouraged at all times. You will find hundreds of reasons as to why you should make employee engagement a topmost priority.
Embracing employee engagement as a strategic thought is a major shift of culture and trends in the current business world. Not only does this improve employee wellness but also increases the employee retention rate in the company.