A properly functioning business requires motivated and highly engaged employees. The employee engagement statistics are overlooked, but they can be really helpful for businesses and others to evaluate and understand many perspectives of business operations. Because high employee engagement ultimately leads to an increase in productivity and sales.
How many employees in the U.S. actually feel engaged in the workplace? According to a Gallup employee engagement report, 51% of employees in the US are disengaged in their workplace. Whereas 13% of employees are actively disengaged.
Disengaged employees will simply feel lazy and demotivated all the time. They will have a “give up” attitude and will not have any positive impact on the organization. Although they are not a complete threat to the company, this still affects people around them and their productivity. The real threats are those who are actively disengaged as they will purposely spread a negative vibe around the organization. They will constantly complain and affect other employees.
Employee Engagement Statistics: Key Findings
- The employee engagement statistics have increased up to 34% in the U.S.
- 63.3% of companies tend to state that it is harder to retain employees than to hire them.
- 71% of the overall success of a company depends on employee engagement.
- Employee engagement statistics at the workplace is only 36%.
- The turnover rate of companies due to employee engagement has decreased to 59%.
- Only 15% of employees show engagement at the workplace.
- If employees find their interest there they are 3 times more likely to continue in the current organization.
- In the Western hemisphere, the rate of employee engagement is only 10%.
- The low business units face a 24% less turnover because of low employee engagement.
- 33% of employees either leave their job due to boredom or because they don’t trust their employees.
What is Employee Engagement at Workplace?
Employee engagement is the degree to which an employee commits to their work behaviorally and emotionally, to achieve the company’s goals. To stay competitive in the industry, you would require top talent and it is equally important to understand the importance of retaining the talent.
Kevin Kruse, an author for forbes.com, argued that employee engagement differs from employee happiness and satisfaction. When there is high employee engagement in a company, your employees will have the urge to go the extra mile and outperform their expectations.
Engaged employees in a workplace will be those people on whom your company can rely to come up with solutions and work efficiently towards the company goals.
How Employee Engagement is Important at Work?
Several recognized institutions have proven the fact that a company’s success has a direct connection with associate engagement. According to Harvard business analytics, 71% of businesses achieve success because of the engagement of employees in the workspace. Disengaged employees can be a crucial factor for business failure, check out the business failure statistics in the US to get a better insight into the necessary factors to avoid failure.
Worldwide, only 20% of employees are engaged in their work. In comparison, 36% of U.S. employees are currently engaged with their work and workplace. Also when it comes to America, there was only a 1% increase in actively disengaged employees between 2020 (14%) to June 2021(15%).
The ratio has increased from 2.4:1 to 2.6:1. So for employees to work effectively and contribute to a company’s success, employee engagement is necessary. The turnover rate of the company, as well as staff, depends on the engagement of employees.
How Many Levels Does Employee Engagement Have?
Certainly, to understand employee engagement statistics you have to know the levels of associate engagement. Following are the names and brief meanings of employee engagement levels.
1. Highly Engaged – The individuals who see themselves as a part of the company’s future and are at the higher authority of a company.
2. Moderately Engaged – Moderately engaged employees have favorable outlooks for the company. Specifically, they have responsibilities given by higher authorities.
3. Somewhat Disengaged –They hold the risk of the overall turnover of the company and also the staff. They are different from what a company wants to achieve.
4. Disengaged – They give negative opinions and reviews and state their dissatisfaction with the business and hold qualified applicants to apply to the firm.
What Affects Employee Engagement?
Employee engagement is dependent on several factors that are related to the relationship between a company and its employees. You could better understand the relationship between highly engaged employees and their loyalty through customer loyalty statistics. Here are the other factors affecting employee engagement.
- The culture of your company: A diverse cultural background and an open environment can drastically increase the level of employee engagement. Employee satisfaction is a must, along with values & behavior.
- Participation of Employees: Every workplace needs to host fun events every once in a while, be it holiday celebrations, team-building activities, or virtual activities. Not only that, employees should be encouraged to participate in every activity carried out at work. It boosts their morale and gives them the opportunity to socialize.
- Management: Employees can be more engaged at the workplace only if they have a good team manager to rely on. 75% of job success is based on how employees connect to others, their culture, and their ability to manage hardships. Many people even consider staying in their current job because of the managers they work with.
- Employee Recognition: Employee engagement is higher at workplaces where employees are appreciated for their work every now and then. Recognition gives them satisfaction, which plays a key role in the success of a company. 85% of employees feel satisfied if the company gives them recognition for their work.
- The Health of Employees: The big drain on employees’ engagement is their mental and physical health. Sometimes it’s a health condition, but in many cases, it’s an unhealthy work-life balance, which is important to avoid. Employees with health issues cause companies a total of $136 billion loss a year.
10 Crucial Employee Engagement Statistics
A company should prioritize its relationship with its employees. Lack of associate engagement in the workplace is detrimental and companies should start working on employee satisfaction to achieve success. Here are some crucial stats to give you an insight into how important engaged employees are.
1. Engagement Level of Employees in the Company
Amid the pandemic, there was 38% more associate engagement. Employees were highly motivated and engaged at their workplace. But, after the pandemic, there was a 31% drop.
A company with better employee engagement at the workplace has 21% higher profitability. The productivity of engagement companies increased to 17% for the ones with a disengaged workforce.
2. Flexible Schedules For Employees Engagement
Even if the employee’s engagement rate in an organization is high, they might leave the job. If an individual is offered more flexible schedules then there is a 71% of possibility that they will consider leaving the firm and shifting.
3. Support of Senior Employees
Any employee working in an organization would look upon the culture of the firm and other associates. 68% of employees could leave a firm if not supported by senior management.
Every organization must ensure they support their employees and respect the employee’s satisfaction levels. This will result in a higher engagement level and eventually success for the company.
4. Internal Communications To Motivate Employees
Employees are 85% more motivated due to internal communications. For a company to achieve its vision, mission, and goal, it should regularly communicate and give updates to the team. It will increase team engagement to achieve similar goals.
5. Onboard Experience to Increase Employees Retention
Employee engagement statistics also show a positive impact when a good onboarding plan is adopted. It increases employee retention by 82%. The productivity also increases by 70%.
6. More Female Engagement than Male
One of the statistics published in the ‘The Journal of Business & Management states that employee engagement and gender diversity have a direct relation. In many firms, women do not have the same opportunities as men. Due to this when women get a chance to seize a new opportunity, they prove themselves.
According to the Gallup employee engagement report, women are more engaged than men. Even the employees who are guided by women tend to be more engaged than the ones led by men.
7. Actively Decrease in Turnover Rate of Staff
When a business actively tries to engage its employees in the workplace, they see an 18% decrease in staff turnover. A company must create a reliable workforce through which employees stay with the firm for a prolonged period.
8. Actively Disengagement Levels of Employees
Some least employees have the worst experiences while working at a firm. In 2019, the reports said that the very least percentage of employees leave the firm due to their miserable experiences.
13% of employees leave a firm due to unhappiness or a bad work experience. About 4,700 employees in the US are disengaged at the workplace and leave due to personal issues.
9. Region-Based Employee Engagement
In 2021, the record of associate engagement reached a high of 36%. Whereas the employee engagement statistics may differ according to the region. Latin Americans have the highest engagement rate up to 74%.
Other states’ engagement levels fluctuate depending on the population. In different parts of the world, the engagement level differs. For eg: In the middle east and North Africa, the rate is 72%. North America also has an employee engagement rate of 72%, and Sub-Shahara Africa at 62%.
10. Employers Monitoring Employee Engagement
Only 16% of employers use some sort of technology to monitor the engagement level of their employees. Managers or employers may track computer working usage, check-in and out, or monitor internal chats or communications.
Only some companies track the productivity of employees. Others track the team engagement and well-being of employees to build a better understanding level.
How High Employee Engagement Rate Benefit?
Once you hire a productive individual who is also an engaging employee, the workplace will be more pleasant. Any business can reduce quality control issues by 43% by just having high engagement among employees. There are also other benefits of employee engagement which are as follows:
- Employees’ morale increase
- Increased productivity
- Customer service is improved
- Absenteeism is reduced
Note: The profits are increased by increasing team engagement companies. On average, a business can increase sales by 20% with improved associate engagement.
4 Employee Engagement Statistics Facts
Managers need to adapt to the situations with every employee and choose the best path to motivate and engage them. Here are some facts about employee engagement.
1. Best work takes a strongly engaged environment in the workplace
It is believed by a majority of employees that the culture of the firm affects their working style. 76% of employees feel like a strong engaged culture helps them to be productive and efficient. Whereas 74% of employees believe that strong working culture helps to deliver appropriate customer service.
2. Referrals help in finding the new job opportunities
According to employee engagement statistics, 71% of employees look for new job opportunities through referrals. Most companies hire individuals for top positions due to referrals of their employees.
3. Lower absenteeism in highly-engaged business units
In highly engaged organizations, there is 41% less absenteeism. High-engagement level employees work consistently and deliver high-quality performance.
4. Employees engagement who receives recognition
Highly-engaged employees are those who receive regular recognition. 84% of highly-engaged employees get recognition. Employees who are appreciated and get recognitions are most likely to go above & beyond their responsibilities.
What is Employee Retention Rate?
It is necessary to keep an employee for a prolonged period. It is easy to hire an employee but much harder to convince them to stay. If a company has higher team engagement stats then the turnover rate decreases. Here are the statistics showing the turnover rate for 2021 by industries.
Statistics of Employee Retention
- 96% of employees believe empathy is one of the major factors in employee engagement
- 75% of employees leave their job due to issues that arise with their boss
- 37% of the productivity of employees is boosted by recognition
- 63.3% of companies believe in retention as a hard job than hiring
- Among all companies, only 25% of companies have an active strategy for associate engagement
Virtual Employee Engagement Statistics
According to the 2021 reports, 70% of employees still work remotely. Flexible timings and working from anywhere is a major incentive for virtual working. Although employees are less likely to be engaged virtually, there is still positivity in the US remote work statistics.
On the other hand, the employee engagement statistics show 38% of employees claim to feel exhausted after attending virtual meetings. 30% of employees have built up stress. 37% of employees are ready to switch their jobs if they get off-site working permission even part-time.
Key Factors of Employee Engagement Statistics
Employee engagement statistics state it is necessary for companies to provide employees with the satisfaction that they deserve. It will boost their morale and make them more productive.
Engaged employees are 17% more productive than any other employees in the company. To work diligently and expand employees’ efforts discretionarily, it is important to retain engaged employees. The ones with high engagement levels are compared with the ones who do not have high levels. The results are as follows:
- Ratings of customers increase by 10%
- Productivity increased by 17%
- Increases sales by 20%
- Profits of the company are increased by 21%
- Absenteeism is reduced by 41%
You should also know that only 22% of employees believe that their company has a planned and clear direction. 13% of employees accept the fact that their leader has good communication skills.
What is the Cost for Disengaged Employees?
Due to the disengagement of employees in the company, the firm could lose $450 to $550 billion per annum. Disengaged employees result in lower productivity levels, poor customer service, errors in work, higher absenteeism, and lower profitability.
For every $10,000 salary, a single disengaged employee can cost $3,400 to the company. Many employees quit their job and do not continue further which costs the company to rehire a new employee. Many of the employees put negative words outside due to which the company lost qualitative hires.
High-Cost Employee Disengagement Statistics
- 15% of employees feel like they are engaged at work
- 81% of employees will leave their job if they get new opportunities
- To hire a new employee, the company will cost you an average of $5,500
- On average 17% of employees are not engaged at work
- 1.1 billion is annually spent on hiring new employees
Are There Any Causes For Employee Disengagement?
Yes, there are certain causes and reasons why an employee decides to leave the firm. The following are the causes of why an employee leaves the job.
- A job with a thriving culture is preferred by 47% of employees
- When an employee gets a disengaged, 95% of the time they didn’t know
- Boredom and trust issues at the workplace employee engagement are a major reason that 1/3rd of the employees leave
Frequently Asked Questions
1. How much are the employee engagement statistics at the manager level & above?
49% is the associate engagement at manager level & above.
2. How much is employee disengaged below manager level?
The employee disengaged level below the manager level is 38%.
3. Are employees engaged in their initial years?
Employees are 83% engaged at the initial level and after 3-5 years only 74% of engagement is there.
4. Which businesses are happy with the current employee engagement statistics?
13% of businesses are only happy due to the current statistics on employee engagement.
To Conclude
Employee engagement statistics will give you an insight into the importance of engaged employees. These statistics also show the problems that can create an ineffective organization. You can also help yourself estimate the cost to replace disengaged employees, get financial insight, and avoid the factors that effects employee engagement.