Engaged employees are a vital element of a successful company. This is especially true since higher engagement leads to higher job satisfaction, productivity, and, by default, higher revenues. However, many employers approach employee engagement solely by measuring workers’ contentment. Let’s check these employee engagement statistics to see if companies are doing a good job keeping their workers engaged. Maybe this will help your organization devise a proper engagement strategy.
Employee Engagement Statistics (Editor’s Choice)
- 73% of employees consider leaving their jobs. (Smarp)
- Around 61% of employees feel burnout at their jobs. (Hirebook)
- Disengaged employees cost the US economy up to $550 billion a year. (HR Cloud)
- 85% of employees aren’t engaged at their jobs. (Smarp)
- Engaged employees are 41% less likely to be absent from work. (Gallup)
- Highly engaged companies register 24% less employee turnover. (Gallup)
- Companies with highly engaged employees obtain 22% higher profits. (Smarp)
- 94% of employees would stay at their current job if the company invested in their career. (LinkedIn)
1. US employers spend $2.9 million per day to find replacement workers.
Employee engagement is a serious issue that US employers are concerned about since over one-third of workers are actively or casually searching for a new job. Moreover, replacing employees is an expensive operation. For example, US employers’ total costs for replacing workers amount to $1.1 billion per year.
2. Training and hiring a new employee costs around $1,286 per year.
Finding workers to replace the ones who quit is tough, not to mention costly. Work statistics and recent research show that hiring costs can go up to $4,129, with an average of 42 days to fill a position.
3. 73% of employees consider leaving their jobs for multiple reasons.
According to employee retention statistics, most people, although not searching for a job at the moment, would consider changing their job if the right offer comes. And, money is not always the issue. A recent employee engagement research indicates that 74% of young employees would accept even a pay cut if it meant finding the ideal job. On a similar note, employee engagement statistics indicate that for 23% of those looking for a job, a pay increase is not an incentive to change their job.
4. Boredom is the main reason for 33% of surveyed employees to leave their job.
A recent survey of employee engagement levels revealed interesting HR stats. Namely, most people want to leave their job due to boredom. Next, 24% feel their values do not fit the company culture. Then, around 21% have lost their jobs or expect to lose them soon. Following that, 19% claim they want a higher salary. Finally, the company politics determined the desire to quit in 3% of employees.
5. 38% of remote workers are exhausted after daily virtual meetings.
In 2020, ‘thanks’ to the pandemic, most workers switched to online work. In turn, that resulted in a significant number of daily virtual meetings. Statistics on employee engagement show that not only more than a third felt exhausted, but 30% reported feeling stressed. Eventually, that led to lower engagement, burnout, and high levels of demotivation.
6. Around 61% of employees are feeling burnout at work.
HR departments around the world are facing many challenges. Balancing employee engagement and well-being are at the top of the list since workplace engagement shouldn’t be the cause of health problems. Yet, workplace statistics reveal that many employees feel exhausted, while 31% are under extreme stress. Most of them don’t even use vacation days out of fear of falling behind in their work. Instead of increasing productivity, this inevitably leads to the opposite.
7. The growth rate of the talent management tools market will be 13% by 2025.
One of the common employee engagement activities involves using different HR software. Companies use them to manage everything — from productivity, onboarding, performance management to engagement. The projected growth rate of the entire core HR software between 2017 and 2025 is 9.4%.
General Statistics on Employee Engagement
8. Disengaged employees cost the US economy up to $550 billion each year.
A recent study shows that the cost of disengaged employees in the US is between $450 and $550 billion annually. Lack of motivation and responsibility are the main culprits. As a result, productivity is lower, people miss deadlines and make errors. The final result is low customer satisfaction and profits. For reference, a single employee that is disengaged costs the company about $3,400 in lost productivity for each $10,000 in salary.
9. 85% of employees aren’t engaged at work.
Most companies can’t exactly brag about employee engagement, facts confirm. Based on the research done by Gallup, only 15% of employees stated they felt engaged at their workplace. The rest were negative about their engagement or were doing the bare minimum through each workday.
10. 29% of US and Canadian employees are engaged at work.
While only 13% of employees worldwide are engaged at work, as employee engagement statistics confirm, the employee engagement level in the US and Canada is at a higher standard. Alternatively, in Western Europe, around 14% of workers feel engaged. In East Asia, the situation is dramatic, with only 6% of people feeling actively engaged.
11. 47% of people are seeking a new job due to the company culture.
Culture is one of the main engagement instruments the company should work on. If we consider employee engagement data, most employees want to leave specifically because of poor company culture. Good corporate culture nurtures transparency, collaboration, teamwork, good relationships, and rewarding good performance. Also, it is the first step toward retention and profitability.
12. Engaged employees are 41% less likely to be absent from work.
The importance of employee engagement lies in the many benefits it brings to the company. Among others, higher engaged business units register a 41% reduction in absenteeism and a 17% increase in productivity, employee engagement statistics demonstrate.
13. Highly engaged units in a high-turnover company register 24% less turnover.
Turnover is a significant problem for many companies. One of the benefits of engaged employees is that they are less likely to leave. In low-turnover organizations, the highly engaged units achieve 59% less turnover. Companies with more than 40% of the annual turnover are considered high-turnover organizations, while those with 40% and less are low-turnover companies.
14. Recognition from employers and managers is extremely important for 37% of employees.
One of the most significant things a manager could do to support the activities and foster engagement is to recognize workers’ efforts. In fact, recognition leads to better employee morale, statistics confirm. Other kinds of support that workers appreciate are more autonomy (12%) and more inspiration (12%). Also, 7% want higher pay, 6% better training, and 4% desire promotion. Also, 43% want to receive recognition privately, while 10% prefer public recognition.
15. 84% of highly engaged employees received recognition when going above and beyond at their work.
This fact best reflects the importance of employee engagement in the workplace. Compared to highly engaged employees, only 25% of actively disengaged ones were recognized when putting extra effort into work. At the same time, failing to recognize employees’ day-to-day successes can be frustrating. Considering how few people actually feel engaged at work, as employee engagement data indicate, managers should recognize and reward the deserving ones more often.
(When I Work)
16. Only 16% of employers use technologies to monitor employees’ engagement.
In line with studies on employee engagement, not many companies leverage the benefits of technologies like employee monitoring tools. Those who do, mostly use tracking work computer usage, monitoring emails, and virtual clocking in and out. Some companies track productivity as well. With the rise of the pandemic, the use of different tools has accelerated, particularly as the need for monitoring the remote workforce is ever-growing.
17. Organizations with over 50% employee engagement register 80% customer retention.
Based on engagement statistics, organizations with over 50% employee engagement typically retain customers much better. When the staff is satisfied and working in the company is a good experience, it’s only normal that they will create a positive experience for the customers too.
18. 90% of leaders believe the engagement strategy affects their business success.
Despite the general consensus about the need for an engagement strategy and its relevance to business success, only 25% of HR leaders have one in place. To have highly engaged employees, companies need to keep tabs on their employees’ feelings and conduct anonymous surveys to obtain genuine feedback, employee engagement statistics suggest.
19. 68% of employees would leave their job if senior colleagues failed to support them.
Teamwork and colleagues’ support do matter. In fact, high employee engagement is impossible without them. Recent survey results have stressed their importance even more and the need for the management to ensure employees feel supported.
Employee Engagement and Productivity
20. Companies with highly engaged employees obtain 22% higher profits.
Engaged employees contribute more at work and are much more productive than others. Employee engagement stats show that these companies, as a result, register significantly higher profits. That’s why it’s essential to maintain excellent levels of communication to foster engagement, especially in the era of remote work.
21. 91% of surveyed employees claim their leaders lack communication skills.
Based on recent research conducted by Interact/Harris Poll, most employees don’t think their leaders are effective communicators, and most of them don’t trust their methods. According to employee engagement statistics, effective communication is a cornerstone to more productive employees and a key to employee engagement.
22. Disengaged employees are 60% more likely to commit errors at work.
Levels of employee engagement are crucial to how workers perform their duties. Research confirms that those who are actively disengaged are prone to make errors that impact the safety of the company and other workers. Also, employee engagement stats suggest that most of these employees don’t even care about the other workers.
23. 65% of data breaches are direct results of employee negligence.
Disengagement poses a serious threat to the organization because these employees often fail to follow security protocols. In turn, this can lead to security breaches and fraud. According to cybersecurity statistics, 22% of data breaches involve malicious employee activities. However, a much larger number originates in employees’ mistakes due to disengagement. Hence, increasing employee engagement remains paramount.
Career Development Statistics
24. Only 29% of employees are happy with the opportunities for career development.
One of the best tactics for engaging employees in the workplace is allowing them to progress in their careers. Therefore, it is important to create an environment for the advancement they deserve. After all, 41% of employees think this is an important aspect of job satisfaction. Although 30% find it very important, the same percentage said they were happy with their current situation.
25. 87% of millennials rated career growth as an important aspect of the job.
Millennials are maybe one of the largest groups that care deeply about development in the professional sense. A very high number of them cited career development as very important in their job, as opposed to 69% of non-millennials. In line with employee development statistics, this is one of the top three factors for millennial work retention, separating them from non-millennials.
26. 40% of employees with poor training are more likely to leave in the first year.
Onboarding statistics indicate that improper training is essential in swaying employees to leave the company very soon. Companies with high employee engagement rates provide training to their workers to reach their long-term career goals. What’s more, employee engagement data confirms that if new employees don’t receive instructions on how to handle software or other tools, they will only accumulate frustrations, feel overwhelmed, and leave.
27. 94% of employees would stay at their current job if the company invested more in their career.
There are many types of employee engagement methods, but career development seems the most effective one. Yet, it is a roadblock for many companies since employees find it difficult to make time for learning. It’s something people, managers, executives, and employees agree on, employee engagement statistics reveal.
Employee Engagement Strategies
28. Good company culture boosts the revenue by four times.
According to a long-term study, the companies with a corporate culture that fostered leadership initiatives and appreciated their customers, owners, and employees grew 682% in revenue. Conversely, the organizations that didn’t establish a thriving company culture had only a 166% increase in revenue.
29. The best companies globally are 35% more likely to start the onboarding before the employees' first day at work.
In order to achieve high employee engagement scores, renowned companies are leveraging effective onboarding. Employee engagement data has shown that most try to solve the lack of time, one of the biggest obstacles, by utilizing the top onboarding software. These tools help HR professionals turn work into lessons, tasks and conduct ongoing assessments of new hires’ progress.
30. At Best Buy, a 0.1% increase in employee engagement is worth $100,00 per year.
Utilizing employee engagement software and analytics is becoming common in organizations that wish to improve their HR management. In line with employee engagement stats, Best Buy, Starbucks, Limited Brands, and many more organizations value employee engagements and try to capitalize on them. For instance, at Best Buy, the value of a 0.1% increase in engagement in a particular store is equal to over $100,000 in annual income of that store.
31. Up to 50% of employee evaluations are 30 days or more overdue.
Performance reviews are the essential part of an engagement process, as employee engagement statistics show. However, managers struggling to deliver them on time and being done only annually affect even the engaged employees. On top of that, 51% of workers find their reviews inaccurate and demotivating. Since reviews are time-consuming yet relevant, managers should consider different performance management tools to automate the process.
Engaging is not rewarding employees only. It entails many more aspects, as these employee engagement stats indicate. Among other things, it involves constant and continuous communication with the workers about the work and the challenges. You need to be aware of their needs and issues they face to increase their job satisfaction. It may seem like hard work, but the results are incredible — the more engaged the team, the better the productivity levels, which all means a better customer experience.
Employee Engagement FAQ
Why is employee engagement important?
According to employee engagement statistics, it plays a vital role in workers’ general satisfaction levels, aside from staying energized and efficient. Establishing an effective engagement strategy helps organizations reduce turnover rates, build better customer experience, and increase productivity. Finally, as a result of all this, the company’s revenue increases. (EveryoneSocial)
How to engage employees in the workplace?
According to employee engagement data collected in different studies, there are many ways to keep them engaged:
- Find out more about them. Try to get to know them better and learn about their family or goals; it makes them more connected to the company.
- Be transparent and let them know what is happening in the company. They need to be aware of all successes and failures to demonstrate an interest in the company’s well-being.
- Provide them with proper tools for work.
- Allow them to grow.
- Make sure to acknowledge their growth and achievements.
- Encourage teamwork.
- Create a fear-free work environment.
- Support their personal development.
- Listen to their feedback and act on it.
What makes an employee highly engaged?
Given the employee engagement data, some of the main pillars for employee engagement are integrity, trust, communication, and commitment that go both ways. Only this approach fosters business success and contributes to individual performance and productivity.
(Engage for Success)
What is the value of employee engagement?
Based on research, employees who are engaged are more productive. The best proof lies in the fact that a work culture with engaged people contributes to increased productivity by anywhere between 12% and 22%. On a similar note, it reduces employee turnover and its costs. For instance, it takes six to nine-month the employee's salary to hire and train someone in their place. Moreover, losing an executive manager costs a stunning 213% of that person’s annual salary.
What is a good employee engagement rate?
Based on engagement statistics, a good average engagement rate for a company is 50% and above. However, recent surveys reveal that approximately 36% of employees in the US are engaged.
What percentage of employees are actively disengaged?
According to Gallup, 36% of people are engaged in their work and workplace in the US. Globally, this number is smaller, with only 20% actively engaged people. On the other hand, the percentage of disengaged employees went from 14% in 2020 to 15% in 2021.
Are engaged employees more productive?
There is a strong connection between employee engagement and productivity, statistics confirm. Usually, employers try everything to keep them productive — from wearable devices to office plants. But, they tend to miss the most obvious solution — engagement. Research has confirmed that engaged employees are 17% more productive. They tend to work with more diligence and put much more effort into achieving targets.
Why are employees not engaged?
Confirmed by employee engagement facts, one common reason is that they either don’t like their job enough or don’t like it at all. Next, they don’t feel their work is valued and important. Alternatively, they don’t feel empowered or involved sufficiently in the workplace. And finally, they think their needs aren’t met, or the employer doesn’t care enough about them.
Are healthy employees more productive?
Based on employee engagement statistics, healthy employees are generally more productive for many reasons. They are less likely to call in sick or miss work. What’s more, the amount of savings for companies that provide a healthy workplace and introduce health programs is measured in reduced absenteeism, less spending on training replacement employees, or reduced overtime to cover for these employees.