Why do organizations need to focus on their employee engagement statistics now more than ever? Well, the pandemic has brought the economy to its knees, and for businesses to survive, they need to put their best efforts to retain their employees.
Knowing the statistics will help companies understand the importance of employee engagement to keep them going, in or out of the crisis.
Here are 25 surprising employee engagement stats you need to know.
- 38% of US employees were engaged amid the Coronavirus crisis in May 2020.
- 31% of US employees were engaged amid
- 40% of US employees were engaged in July 2020.
- 63.3% of US companies find it harder to retain employees than to hire them.
- 85% of employees around the world are not engaged in the workplace.
- 77% of employees say that a strongly engaged culture makes them do their best work.
- 71% of highly engaged organizations recognize their employees for jobs well done.
- 65% of employees with clearly defined responsibilities are more engaged.
- Companies with highly-engaged employees are 22% more profitable.
- Highly-engaged businesses have 41% lower absenteeism.
Statistics on Employee Engagement in the USA
Gallup employee engagement statistics show that despite the global economic drop due to the Corovirus crisis, more employees in the US became highly engaged and enthusiastic at their workplace, hitting a new high of 38% engaged workers. As of May 2020, this was the highest recorded employee engagement statistics in the US since 2000.
2. 31% of US employees in the US were engaged amid police brutality protests in June 2020.
In June 2020, employee engagement statistics Gallup recorded showed a drop to 31% in engaged employees in the US. Some possible reasons include the killing of George Floyd at the latter part of May and nationwide riots and protests.
3. 40% of US employees were engaged in July 2020.
With most employees now working at home due to the Coronavirus restrictions, the work-life balance seems to positively affect them as the statistics about employee engagement in the US show an increase from 31% in June to 40% in July 2020. This record exceeds the record set in May, making it the highest since 2000.
4. 13% of US employees are actively disengaged.
Both 2019 employee engagement statistics and employee engagement statistics 2020 by Gallup show that 13% of US employees are actively disengaged. These are primarily those people who believe their work experience is miserable and spread this misery around as much as possible.
5. 47% of US employees are not engaged.
Not engaged employees are those who are psychologically unattached to their job and company. As of July 2020, 47% of US employees are not engaged, according to statistics that show employee engagement. They show up to work, but they don’t have the energy and passion for performing their job well. They are on the constant lookout for other opportunities outside their current workplace.
Most of them are people in leadership and managerial roles, as well as employees from minority groups. This particular group might have been affected by the political unrest due to the killing of George Floyd in late May, resulting in low employee engagement statistics.
6. 63.3% of US companies find it harder to retain employees than to hire them.
Employee engagement is essential in retaining employees. That said, in research conducted in 2019 including more than 600 US businesses with 50 to 500 employees, 63.3% said that they find it harder to retain employees than to hire them. These employee engagement retention statistics are both surprising and alarming, as they show how much companies struggle in keeping their employees engaged so that they could retain them.
Employee Engagement Stats and Facts
7. 77% of employees say that a strongly engaged culture makes them do their best work.
(Cision PR NewsWire)
Employee engagement retention statistics show that 77% of employees believe that they do their best work when strongly engaged. Another 76% believe their productivity and efficiency is tied to engaged culture, while 74% think working in such a company helps them deliver excellent customer service.
8. Companies with highly-engaged employees are 22% more profitable.
The statistics on employee engagement and productivity show that companies with highly engaged employees are 22% more profitable than companies with employees who are not engaged. Employees who feel engaged in their workplace are more productive and deliver high-quality performance consistently.
Ensuring that remote employees can communicate freely and openly will keep them engaged, enabling better teamwork, and ultimately, increase their productivity, resulting in better employee engagement and productivity statistics.
9. 71% of employees say they find job opportunities through referrals.
Organizations with high engagement culture often hire their top employees due to referrals from their current employees. According to Gallup’s 2018 employee engagement statistics, 71% of employees say that they look for job opportunities through referrals from current employees of organizations.
10. Highly-engaged businesses have 41% lower absenteeism.
Gallup’s statistics on employee engagement show a 41% reduction in absenteeism in highly engaged businesses. Employees with high levels of engagement come to work consistently and deliver high-quality performance. Businesses with low absenteeism rates have better customer relationships and organic success.
11. 85% of employees around the world are not engaged in the workplace.
Alarming employee engagement statistics by Gallup indicate that 85% of employees worldwide are not engaged in the workplace, and only 15% are. It’s clear proof that most workers from any part of the world don’t perceive their work as positive and engaging. They only come to work for the sake of it, but without any emotional attachment.
12. 84% of highly engaged employees are those who receive recognition.
Employee recognition adds motivation, pride, and self-confidence, which leads to increased employee initiatives and ownership. Based on global employee engagement statistics, 84% of highly engaged employees are those who receive recognition. Employees who are rewarded and recognized for jobs well done are highly engaged and often go above and beyond their duties, leading to better culture and overall excellent performance.
Employee Engagement Statistics 2019
13. Only 35% of employees in less empowering and less respecting companies stay.
People like to have control, power, respect. Companies that allow this have more engaged and loyal employees who stay in the company for a longer time. Power and influence give employees the feeling that they are valued, which impacts their loyalty. Based on employee loyalty statistics, only 35% of people working for companies who don’t provide this stick with their jobs for three years.
14. HR in mid-sized organizations estimates that 70% or fewer employees are engaged.
(HR Research Institute)
A vast majority of HR professionals, or 84%, believe that only 70% or fewer employees in mid-sized organizations are engaged. Only 14% believe that more than 70% of employees in these organizations are engaged, employee engagement data shows.
15. 80% of HR professionals believe that engagement directly relates to leadership.
(HR Research Institute)
One of the most acknowledged employee engagement facts is that engagement starts with the leaders of the companies. Managers and supervisors who engage their employees consistently are the ones who drive performance better than those who are less engaging. According to employee development and engagement statistics 2019, 80% of HR professionals believe that engagement directly relates to leadership.
16. 71% of highly-engaged organizations recognize their employees for jobs well done.
(HR Research Institute)
Statistics for employee engagement show that 71% of organizations with high levels of engagement recognize their employees for jobs well done. Rewards and recognitions are always significant factors in motivating and engaging employees, resulting in higher productivity and quality of work, according to employee productivity statistics. Although it’s noteworthy that 41% of less engaged organizations also reward and recognize their employees.
17. 65% of employees with clearly defined responsibilities are more engaged.
When proper expectations are set, and the responsibilities are clearly defined right on the onset of onboarding, employees perform better because they understand their own goals and the organization’s expectations from them. The 2019 employee engagement statistics outcomes reveal that 65% of employees with clearly defined responsibilities are more engaged.
Employee Engagement Statistics 2018
18. 89% of employers believe that their employees leave them for money.
One of the most common misconceptions by employers is that employee engagement comes from employees receiving an excellent compensation package. The statistics on employee engagement 2018 reveal that 89% of them believe that their employees leave them for money. The truth is, only 12% leave their current company for a better offer.
19. 92% of employees prefer empathy over perks.
Many companies believe that having tons of perks, such as free gym membership, nap rooms, health insurance, and more, are a great way to engage employees. While the employee happiness statistics may agree with this, and these benefits can keep employees happy, it doesn’t necessarily mean that they can engage them. Based on a study conducted in 2018, 92% of employees prefer employers who show empathy over those who supply them with lots of perks but don’t empathize with them.
20. 58% of employees say that they would trust a stranger more than their boss.
A survey on employee engagement reports that 58% of employees would rather trust a stranger than their boss, and only 46% say that they fully trust their employers. If employees don’t trust their employers, engagement can be a pain area.
21. 67% of employees who work for companies with wellness schemes are more engaged
Having wellness schemes in an organization can make employees more engaged. There are many ways to do it, such as allowing employees to join fitness activities like a company marathon, encouraging them to take regular breaks to rejuvenate, providing free or discounted gym membership, etc. The employee engagement 2018 statistics show that 67% of employees who work for companies with such a strategy are more engaged.
Surprising as they may seem, and some even alarming, these employee engagement statistics prove that engagement is a critical factor in every organization’s success. It’s clear that organizations have to focus on employee engagement to ensure that employees will stick with them, while also taking into consideration the fact that employee engagement scores vary by industry. Doing so will have employees continuously performing better, especially in trying times akin to what the world is experiencing now due to the Coronavirus crisis.
Employee engagement is a strategy that delivers the right conditions to every member of an organization so that they will give their best each day they come to work. It directly impacts the organization’s success, as engaged employees are more productive and stay with the company longer.
This is a two-way process between the employers and the employees to build communication, trust, integrity, and commitment. It’s a measurable approach that helps drive productivity, efficiency, performance, and quality, resulting in the business’s overall success.
These are the top 3 reasons why employee engagement is important.
- Engagement increases employees’ productivity. Based on credible reports, when employees are highly engaged, they are more motivated to do their best work, resulting in a boost in their productivity and efficiency.
- Highly-engaged organizations have higher retention rates. Statistics prove that highly-engaged organizations have fewer people leaving them for another job. They have engaged employees who provide a high amount of investment and commitment to stay for a very long time in the same company.
- Employee engagement promotes a culture where people align with the company’s mission. An organization that gives weight to its company’s values creates a culture where people are aligned with its mission, and employee engagement is a critical factor fulfilling it.
Gallup reported that the average percentage of employees engaged in an organization over the past 18 years was 30%. In the US alone, employee engagement has improved from a low of 26% between 2000 to 2005 to 38% in 2020, according to employee engagement statistics 2020.
On the other hand, the average percentage of US employees who are disengaged over the past 18 years was 17%. Although it’s worth mentioning that the drop to under 20% happened right after the recession in 2007.
According to the experts, there’s no single way to measure employee engagement. Still, a combination of these methods can help organizations have a good idea of how well they are doing with employee engagement.
- Initiate focus group discussions with 6 to 12 employees to share thoughts with a leader of the organization.
- Do daily poll surveys and single click polls with just a question or two to measure employees’ happiness, satisfaction, and future orientation.
- Recognize employees and see how engagement will increase in the process.
- Monitor productivity as it’s proven that highly engaged employees are more productive.
- Conduct interviews with exiting employees to know the reason they’re leaving.
- Keep track of the retention rate. Organizations with high employee retention rates have good employee engagement.
There are many employee engagement activities that organizations can do to keep their employees at the center. Some of them are:
- Workplace parties, such as company anniversary, Christmas party, Halloween party, Thanksgiving, etc. make employees feel that their company values them.
- Learning lunches allow employees from different departments to share their thoughts and experiences over a short lunch meeting.
- Employees love to join games, tournaments, and competitions that allow them to enjoy and build camaraderie with their colleagues and bosses.
- Rewards and recognition events not only motivate employees to perform better, but to also engage with each other.
- Team building activities facilitate bonding, especially if it’s outside the office.
- Fundraising and charity campaigns are an excellent way for employees to share a common goal.
Employee engagement benefits the employees, the company, and the customers. Engaged employees are highly motivated and satisfied with their job, which leads to enthusiasm and overall company growth brought upon by higher productivity, retention, profitability, loyalty, and less absenteeism.
When employees experience job satisfaction, they become enthusiastic about everything they do in their workplace. When they feel connected with their company, they produce high-quality work, which benefits both the company and its customers. When they feel that their company values them, they stick it out, saving a lot from hiring costs due to low turnover.
Here are some proven ways to improve employee engagement.
- Providing employees with the flexibility on their schedule or location to suit their needs gives them the feeling that they are trusted; hence they become more engaged, productive, and happier.
- Building genuine relationships with your employees promotes trust and strengthens teamwork.
- Asking for feedback from your employees doesn’t just engage them. It also makes them feel that you trust them and that their opinion matters.
- Clarifying the goals and responsibilities of the employees help you formulate guides to help them achieve those.
- Encouraging employees to have work-life balance fosters an excellent company culture where people want to put their best foot forward, whether they are in or out of the office.