29+ Employee Engagement Statistics, Trends and Facts [2024]

November 20, 2023 0 Comments

Does happiness equal profits?

If so, companies with highly engaged individuals are raking a lot of $$$.

In a study conducted by the ADP Research Institute, employee engagement is defined as ‘the emotional state of mind that motivates people to consistently perform their best work.

This article sums up that idea through surprising statistics.

You’ll learn:

Top Employee Engagement Statistics: Editor’s Pick

  1. Worldwide, employee engagement dropped to 62% in the first quarter of 2022. [1]
  2. When employees are engaged, they make work go faster and better by 21%. [3]
  3. According to Temkin Group’s research, engaged companies boast 10.3% higher customer satisfaction. [3]
  4. Sincere leader recognition boosts employee engagement by 40%. [4]
  5. Only 34% of workers in the United States feel engaged with their jobs. [5]
  6. 9 out of 10 business leaders recognize the significant connection between employee engagement and a company’s success. [6]
  7. Disengaged workers contribute to a loss of $2.8 trillion yearly in the U.S economy. [8]
  8. Disengaged workers are 48% more likely to feel daily stress. [10]
only 62% of employees are engaged in their work

General Employee Engagement Stats

Did you know that just 34% of workers in the US are engaged at work?

That’s half of the engagement rate observed globally, where 62% of workers are engaged in their work.

Explore these statistics to find out more.

Actively disengaged employee rate globally fell from 26% to 17% since 2009 [10]

The utilization of intranet software by numerous companies has significantly decreased the percentage of actively disengaged employees over the past decade, dropping by 12%.

Just 34% of American employees are engaged in their jobs [5]

Since 2000, the number of unhappy workers has hit an all-time low, now only 13%.

Currently, only 34% of US employees are actively engaged at work.

Gallup’s yearly survey on employee engagement since 2000 indicates a peak in the number of enthusiastic and committed workers, while the percentage of discontented employees sits at a historic low of 13%. [5]

9 out of 10 employees who love their job are happy with chances to grow at work [5]

When work feels good and people feel valued, they’re way less likely to quit.

In fact, 9 out of 10 people stay when they feel recognized and valued.

It’s smarter and cheaper to keep great workers happy than always hiring and training new ones. [5]

If employers make employees happier at work by 10%, they can make $2,400 more per worker each year [5]

Recruit Loop shares how companies make more money when workers are happier.

Making staff care 10% extra about their job and the company means $2,400 more for each worker yearly, as per these productivity numbers. [5]

41% of employees who stayed were fully engaged [2]

engaged individuals who choose to leave vs those who stay

In a research conducted by ADP Research Institute, 41% engaged employees stay while only 32% engaged employees leave.

Employees who become less engaged over time are more likely to leave [2]

Engagement predicts employee retention

But over time, their engagement dropped:

  • 17% lower 3 months later
  • 29% lower after 8 months
  • Just half as engaged as active employees before leaving at 9 months

Measuring engagement exposes flight risks before they quit.

So that organizations can take corrective action. [2]

To keep employees engaged and willing to stay, it’s not enough to have just one good thing at work [1]

A report says that only when there are five or more good things happening together, employees feel more engaged (better than the global average of 68%) and more likely to want to stay (63%). [1]

Number of employee experience elementsEmployee engagementIntent to stay
010%21%
124%33%
240%43%
356%52%
470%61%
582%69%
689%77%
796%90%

Why Does Employee Engagement Matters?

9 of 10 business leaders agree that engaged employees bring better results to the business.

To simplify, engaged employees show higher productivity, better collaboration, and act as strong brand advocates.

When employees share brand messages, it can reach up to 561% more people compared to posts shared by the company itself.

Here’s a breakdown of the specific benefits of having engaged employees:

High engagement = high sales!

Researchers measured engagement and sales-to-quota data. [2]

Results show a strong connection between engagement and performance.

In one study conducted by ADP Research Institute, low engagement hurt sales

The bottom 25% missed targets by 7% while the top 25% exceeded targets by 4%. [2]

Engaged employees boost productivity by 21% [3]

Gallup’s study highlights a 21% productivity surge with engaged employees, showcasing a direct link between engagement levels and productivity.

The graph illustrates a consistent productivity uptick as employee engagement elevates. [3]

Enhanced Customer Satisfaction by 10% [3]

Research from Temkin Group shows that companies with engaged employees have 10.3% higher customer satisfaction.

engaged employees lead to higher customer satisfaction

The graph also shows how engaged employees give excellent service, care about customers, and do more to make them happy. [3]

Shapes the Culture of the Company

90% of business leaders acknowledge the crucial link between employee engagement and the success of a business. [6]

Engaged employees naturally embody the organization’s values, mission, and vision, fostering a positive culture that encourages teamwork, collaboration, and a collective sense of purpose. [6]

Reduced burnout and improved mental well-being [7]

The spotlight on mental health and burnout in the business world is timely and essential, particularly in the wake of the Covid pandemic.

Stress levels among employees have escalated, with a staggering 70% experiencing burnout, and nearly half of U.S. workers grappling with mental health challenges. [7]

What Happens if Employees are Disengaged?

Disengaged employees are a nightmare for organizations.

They cause decreased productivity and negative customer experiences.

Moreover, when the workforce lacks a connection to the organization, it leads to a decline in company culture and morale, making it harder to achieve corporate goals.

For instance, Gallup reports a massive $2.8 trillion loss in the United States alone due to disengaged employees.

You can find more detailed statistics on this issue below:

actively disengaged workers cause productivity losses

In the US, actively disengaged workers contribute to annual losses ranging from $450 billion to $550 billion in productivity [5]

American companies incur a significant annual cost due to severely disengaged workers who intentionally undermine the accomplishments of engaged employees.

Gallup estimates this combined loss in productivity caused by these dissatisfied workers to be around $550 billion. [5]

Disengaged workers cost the U.S. economy $2.8 trillion yearly [8]

According to Gallup’s State of the Global Workplace: 2022 Report, disengaged workers contribute to an alarming annual 11% decrease in the U.S. GDP, amounting to a staggering $2.8 trillion loss.

Studies reveal a 60% rise in errors from disengaged employees [9]

Studies indicate that disengaged employees exhibit reduced motivation, lower work output, and a decreased likelihood of meeting role expectations.

Additionally, their work performance is marked by a 60% increase in errors and defects. [9]

Gallup reports a 48% higher probability of daily stress among disengaged employees [10]

Celebrating employee success often takes a back seat in many businesses.

However, evidence suggests that occasional employee recognition yields better engagement, productivity, business retention, and higher morale.

How do Leadership Affect Employee Engagement?

Leaders help get employees involved.

Employees decide if they want to be engaged, but leaders make the place good for engagement.

We looked for employees’ insights and what they think about leaders who support them and make a work culture that’s all about them.

Here’s what we found out:

  • Only 22% of employees believe their leaders have a clear direction for the organization, affecting their sense of purpose at work. [4]
  • Feeling cared for by leaders is the top driver of engagement, but only 28% feel their health and well-being are genuinely cared for.
  • Employees with empathetic managers are 76% more engaged, yet 52% feel leadership empathy is insincere.
  • Genuine recognition from leaders makes employees 40% more engaged, yet 80% feel they lack enough recognition. [4]

FAQs about Employee Engagement

How many workers really care about and like their jobs?

Globally 62% of employees are engaged at work. In the US, 34% are engaged, with 53% not engaged and 13% actively disengaged. 

Why is employee engagement important?

High employee engagement boosts productivity by 21%, increases customer satisfaction by 10%, reduces errors by 60%, and substantially improves business performance and profits.

What is the cost of disengaged employees?

Disengaged workers cost the U.S. economy $2.8 trillion per year in lost productivity. Actively disengaged employees intentionally undermine the work of others.

How can you improve employee engagement?

Key strategies include:

  • Communication: clear communication of company vision and goals
  • Significance: showing employees their work matters
  • Growth: providing development opportunities
  • Recognition: recognizing achievements
  • Trust: building trust and empathy
  • Wellness: promoting wellbeing
  • Listening: actively listening to employees

What programs boost employee engagement?

By implementing an employee recognition program, you can engage the workforce.

Here are some fun employee recognition program names to get you started:

  • Achievers Club
  • Blooper of The Month
  • Top Dog Award
  • All-Star Employees
  • Best of the best
  • The Perfect Ten
  • On The Money
  • Stellar Service Award
  • The Big Cheese Award
  • The “A” Team
  • Best Salesperson of the Year
  • Amazing Colleague Award

Summary

An engaged employee really cares about their job and the company they work for.

They don’t just work to get paid or to move up in their career, but they work to help the company reach its goals.

When businesses create a work environment where everyone feels engaged, they can succeed easily.

If you liked learning about this, check our website for more interesting stats, facts, and trends.

Sources

  1. Canadian HR Reporter. Employee engagement levels fall globally 
  2. ADP Research Institute. The Definitive Series: Employee Engagement | 2020
  3. Linkedin. The Importance of employee engagement for business success!
  4. Forbes. How Leaders Impact Employee Engagement
  5. SmallBizGenius. Job Satisfaction Statistics: Keep Your Workers Happy and Your Business Healthy
  6. Linkedin. Engaging Your Workforce: Best Practices for Employee Engagement
  7. Firstup. Why employee engagement is key to company success
  8. The Enterprisers Project. Employee engagement: Why it matters
  9. GuideSpark. How Disengaged Employees Affect Your Organization
  10. Oak Engage. 25 Employee Engagement Statistics You Wouldn’t Believe

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