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8 Employee Engagement Statistics You Need to Know | HR Cloud

Written by HR Cloud | Jun 9, 2022 3:46:29 PM

High employee engagement leads to higher productivity, higher job satisfaction, more sales, and higher revenue. When your employees are actively engaged in the workplace, they feel happier and ready to go above and beyond to achieve your company’s goals.

Now the question is: Are you doing everything you can to engage your employees and maximize their potential?

The latest statistics below should motivate you to focus more on employee engagement and nudge you in the right direction. Let’s dive in.

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Only 36% of Employees Are Engaged in the Workplace!

According to the latest Gallup report, 51% of employees are disengaged in the workplace, while 13% are actively disengaged. Actively disengaged means feeling miserable at work and spreading negativity to their colleagues.

While 36% of engaged employees is a rather low percentage, it’s the highest since Gallup started measuring employee engagement back in 2000. The number of actively disengaged employees is the lowest since 2000.

In 2017, 85% of employees were disengaged in the workplace, which was a years-long trend. In 2019, the percentage dropped by 10%, meaning that 35% of workers were engaged at the time.

Although employee engagement levels are barely higher now, it’s a surprise that they haven’t dropped due to the pandemic. It shows that many companies have clearly been doing an excellent job of improving employee engagement.

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A Highly Engaged Workforce Increases Profitability by 21%!

Another Gallup’s report on employee engagement shows that companies with a highly engaged workforce have 21% higher profitability. They also have 17% higher productivity than companies with a disengaged workforce.

The reasons for this are clear from point number one. Engaged employees are motivated to complete their tasks on time and successfully and go the extra mile to reach their goals and objectives. They’re better at meeting customers’ needs, which leads to more sales and higher revenues.

Engaged employees are also happier, report lower absenteeism, and tend to be more loyal.

Image from Career Employer

Employee Disengagement Costs the U.S. Economy $450-550 Billion Every Year!

A study on employee engagement found that companies in the U.S. lose between $450-$550 billion each year due to disengaged workers.

That’s partly because of employees’ lack of motivation and a lower sense of responsibility, resulting in lower productivity, errors in work, missed deadlines, poor customer service, and lower profits. A single disengaged employee can cost a company about $3,400 in lost productivity for every $10,000 in salary.

It’s also because many disengaged employees quit their job at some point, leaving the employer to reinvest in hiring, onboarding, and training. Many of them even spread negativity through word of mouth, harming an organization’s chances of attracting quality hires.

38% of Remote Employees Feel Exhausted After Daily Virtual Meetings!

A recent study on the effects of remote work found that most employees show signs of burnout when having virtual meetings every day.

38% of remote employees reported feeling exhausted after daily virtual meetings, while 30% said they felt stressed.

The study was conducted in 2020 when most organizations switched to remote work. To stay connected, some employers held video conferences every day, while others did it weekly.

Staying connected with your remote workforce is essential, especially since they often feel isolated. But frequent virtual meetings could disrupt their workflow and productivity, demotivate them, and stress them out. They could negatively affect their mental health and job satisfaction, making many of them consider quitting their job. Weekly virtual meetings seem to be a better alternative.

85% of Employees Are Most Motivated When Internal Communications Are Effective!

According to Trade Press Services, effective internal communications motivate 85% of employees to become more engaged in the workplace.

When managers share company news and other relevant information regularly, employees feel motivated to achieve the mission, vision, and goals. When you raise their awareness of your goals, they will be more engaged with your customers as well.

So, make the most of internal communications, including employee newsletters, press releases, event updates, and other company news, such as milestones and successful projects. Share information regularly to increase knowledge, improve internal communications, empower teams to collaborate, and build a learning-focused community.

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Only 16% of Companies Use Technology to Monitor Employee Engagement!

According to a recent Gartner poll, only 16% of companies leverage technology to track employee progress and engagement. They use tools to monitor employee activity and see when they clock in and out, how many hours employees worked, when and how many breaks they take, and more.

When you lead a remote workforce, tracking employees’ engagement and performance should be one of your top priorities. It can help you enhance your employee engagement strategy and boost your overall business success.

ProProfs Employee Training Software is one of the best tools you can utilize to boost knowledge, productivity, and engagement. Apart from improving your training efforts, you can use it to identify workers’ strengths and weaknesses. That will help you train them better and boost employee experience and expertise, thus motivating them to be more engaged and productive.

Christopher Baggott
Chief Executive Officer of Medlinks Cost Containment, Inc. and Medlinks Staffing, LLC.

“Our staff has praised the increased communications level Workmates delivers. We use it to communicate important project matters and give staff specific ‘kudos’ or even recognize their birthdays. More importantly, we use Workmates to clarify important project details that needed rapid dissemination among the entire team.”

Companies with a Thriving Corporate Culture Achieve Over 4x Higher Revenue Growth!

As you may know, a strong corporate culture can improve your organization’s financial performance significantly. According to a survey by Hays, 47% of active job seekers want to leave their job because of bad company culture.

An extensive research project on corporate culture and performance showed that good company culture could help you increase revenue by more than four times.

The 11-year-long research project found that companies with performance-enhancing cultures grew their revenues by a whopping 682%. Those with a poor company culture managed to increase their revenues by just 166% over 11 years.

So, improving your corporate culture will help you boost workforce engagement, job satisfaction, employee retention, and profitability. It will create a pleasant work environment where your teammates can thrive and supercharge your business success.

Recognition Is the Most Important Motivator for 37% of Employees!

A pat on the back at the right time can go a long way in motivating employees and keeping them engaged during their tenure in an organization.

One study on top performance motivators found that 37% of employees feel most encouraged by personal recognition.

A recent employee engagement and modern workplace report showed that 84% of highly engaged employees received recognition the last time they went the extra mile at work. Not surprisingly, only 25% of actively disengaged employees were recognized for a job well done.

When you recognize your team members’ good work, whether publicly or privately, you pave the way for their better performance, and when you show you appreciate their efforts, you drive their engagement and productivity.

Monetary incentives are always good motivators, but employees are encouraged by other kinds of recognition as well. For instance, paid time-off, gift cards, and event tickets are small rewards that can greatly help with improving employee engagement.

Your team members will appreciate any kind of gesture of kindness that shows that their accomplishments, no matter how small, didn’t go unnoticed. Even the smallest of accomplishments make a difference in reaching your long-term goals, so show your teammates that you value all their contributions.

And, remember, a simple “Thank you” can also go a long way.

To learn even more about managing remote teams and keeping employees working at home highly engaged, download our ebook now.

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33% of Employees Leave Their Jobs for New Challenges!

According to a Korn Ferry survey, 33% of employees jump ship because they feel bored in the workplace and want to find new challenges. They seek new opportunities for professional development, which motivates them to keep learning and become better at what they do.

Image from Career Employer

That’s why implementing new challenges and variations in day-to-day activities should be one of the top priorities for managers and HR professionals. Providing employees with opportunities to learn and grow continually is the key to improving employee engagement and retention.

Professional development opportunities are also essential for company growth, as they boost employee experience and help develop skills and competencies.

Only 29% of Employees Are Satisfied with Available Career Advancement Opportunities!

An SHRM’s Employee Job Satisfaction and Engagement survey found that only 29% of employees are “very satisfied” with their available career advancement opportunities. 41% marked those opportunities as “very important” when it comes to job satisfaction, engagement, motivation, and employee retention.

Image from Career Employer

The survey also found that 44% of employees are “very satisfied” with opportunities to use their skills and abilities at work.

In an ideal world, these numbers are at the top end of the scale, but you can increase them with the right opportunities for career growth. If you want to have engaged teams across departments, boost their expertise, and make your organization more profitable, provide them with L&D possibilities that they seek.

Are you worried that your business could be doing more when it comes to employee engagement but it isn't?
Check out how we can help!

Learn More about Workmates


Take Employee Engagement to the Next Level 

Improving employee engagement is the key step to business success. When you create a positive work environment where people can grow daily and receive recognition for their efforts, nothing will stand in your way to achieving your goals.

Hopefully, these statistics have inspired you to focus more on engaging your workforce because that means improving your entire organization’s performance. Start implementing the strategies for engaging your employees today, and you’ll boost your company’s profitability before you know it.


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About Author: Angela White is an ed-tech enthusiast with a passion for writing for the consumer market in the areas of product research and marketing using quizzes and surveys. Having a knack for writing and an editorial mindset, she is an expert researcher at a brand that’s known for creating delightfully smart tools such as ProProfs Quiz Maker.