Employee Engagement Statistics 2024. What Will It Cost You?

Employee engagement is crucial for business success. And why not; after all, engaged employees are more productive, innovative, and loyal to their employers. Not to forget, employees are committed to their work, their colleagues, and their company's core values if they feel engaged.

However, achieving high employee engagement can be challenging. In fact, disengagement is prevalent worldwide. As a result, many organizations want to understand what's causing the high employee disengagement in their organizations. Importantly, how to improve employee engagement?

Fortunately, the latest employee engagement statistics can provide valuable insights into this issue. By exploring these statistics, organizations can benchmark their progress, identify aspects that affect the workplace negatively, and develop effective engagement strategies to improve employee productivity, satisfaction, and retention.

The State of Employee Engagement and Well-being

1. 87% of large organizations (5000+ employees) are currently focused on employee engagement.

(HR ZONE)

According to HR ZONE’s statistics on employee engagement, a significant number of mid-sized organizations (100-5000 employees) and small organizations (less than 100 employees) are enthusiastic about engaging their employees. Specifically, 76% of mid-sized organizations and 70% of small organizations have implemented employee engagement activities.

Regarding the motives for establishing employee engagement initiatives, 59% of organizations aim to encourage employees to perform at their best. In addition, retaining talented employees (45%), enhancing employee morale (38%), and attracting top talent (33%) are also cited as primary reasons for creating such initiatives.

26% of companies also stated boosting top/bottom line performance as the reason to improve employee engagement.

Regarding satisfaction levels, 57% of organizations reported that they are very satisfied or satisfied with their employee engagement programs and their impact on performance.

At the same time, 27% of companies say they are currently dissatisfied with their employee engagement programs.

It is worth noting that companies that assessed their performance based on four or fewer factors were the most satisfied with their employee engagement programs. Conversely, organizations that measured performance across too many areas (six or more) reported lower satisfaction levels.

2. 8 out of 10 executives consider an engaged workforce to be “important” or “very important” for a company's success.

(Deloitte, Gallup)

Approximately 64% of companies have an annual survey for measuring employee engagement. In fact, only 18% of companies say they do not formally measure engagement.

However, according to Deloitte’s report, measuring engagement does not guarantee to have engaged workers. In fact, it suggests that only 11% of companies have an inclusive work environment.

A staggering 87% of employees have stated that they will leave their jobs if they do not feel engaged. This makes it crucial for managers to motivate their employees.

To the most extent, managers do understand that the ease of finding jobs online means that they have to motivate their employees. Unfortunately, only 4% of HR managers believe they are successful in engaging workers.

Deloitte estimated that actively disengaged employees cost organizations $300 billion in the US due to decreased productivity and performance. Additionally, Gallup indicated that disengaged employees cost the global economy $7.8 trillion (equivalent to 11% of the global GDP).

3. The United States and Canada have the highest regional percentage of engaged employees (33%) and the second-highest percentage of thriving employees (60%).

(Gallup – State of Global Workplace)

In the US and Canada, the job market is currently strong, with 71% of employees indicating that it is an excellent time to find a job. In comparison, globally, only 45% of employees say it is now the best to find jobs (decreased from 55% in 2019).

Moreover, more than half of employees in the US and Canada report job satisfaction and living comfortably on their income, whereas only 22% of employees worldwide say the same. This indicates that the quality of life for workers is higher than in other regions.

However, despite high employee engagement in the US, the ratio of engaged to actively disengaged employees has decreased over time. In 2022, the ratio was 1.9:1, which is lower than the ratios from 2021 (2.1:1) and 2020 (2.6:1).

This indicates that while more employees are engaged in the US, organizations must address some underlying issues to improve engagement rates and retain employees.

Also, over 50% of employees in the US and Canada say they are stressed at work, vs. the global average of 44%.

Employee Engagement Statistics: Why Employee Engagement Matters

4. Engaged employees are 21% more productive than their non-engaged counterparts.

(Gallup, State of Global Workplace 2022)

Gallup employee engagement data indicate that engagement has stalled globally. Since the pandemic, engagement has increased only by 1%.

Gallup’s 2019 report showed peak engagement rates; some 22% of employees were engaged at work. In 2021, 21% of the world's employees were engaged at work, which was a 1% increase from 2020 but still lower than the 2019 peak.

It is important to note that employee engagement and well-being go hand in hand. For instance, Gallup reports that engaged employees who are not thriving have a 61% higher likelihood of burnout. They are also 23% more likely to visit emergency rooms.

Work stress among employees has also increased to an all-time high. 2023’s Gallup report indicates:

• 44% of employees say they are stressed “a lot of the day” at work.
• 40% report being worried.
• 23% say they are mostly sad at work.
• And 21% report being angry at work most often.

5. Organizations with highly engaged employees realize 18% higher sales than organizations with disengaged employees.

(Gallup, Global Workplace Report)

Organizations with a highly engaged workforce report 23% higher profits than those with actively disengaged employees. But the benefits of high employee engagement don’t end there:

• Highly engaged businesses also report 10% higher customer loyalty.
• Organizations with highly engaged workplaces show 81% less absenteeism and 14% higher productivity.

Additionally, highly engaged businesses realize 43% lower employee turnover. Even in organizations with high employee turnover, highly engaged business units report 18% lower employee turnover.

In addition, organizations with highly engaged employees also report 41% fewer quality incidents (product quality). Plus, 28% fewer theft incidents than in organizations with disengaged workers.

Gallup’s employee engagement statistics suggest engaged teams are committed to improving customer relationships and providing better customer service. For instance, organizations with engaged employees realize 10% higher customer metrics and 18% more sales.

All these benefits of engagement result in highly engaged businesses experiencing 23% higher profitability. Moreover, companies with high employee engagement rates also have higher earnings per share (4.3x more than companies with an actively disengaged workforce).

6. Employees who feel their work is meaningful are 2.4x happier than those who think their job is “just work.”

(Robert Half — State of Employee Happiness)

Robert Half’s employee engagement statistics reveal that happier workers are those who put in more effort at work. They also care more about the companies they work for and are more creative and innovative, leading to overall business success.

Its employee engagement statistics suggest that 75% of workers who are happy with their job roles put in extra effort at work, which can drive organizational success.

Yet, 1 in 4 organizations needs to allow their employees to influence important decisions. 3 in 10 employees report fewer or no opportunities to be creative in their job roles.

The question is, how can organizations create a happier workforce and create more productive employees? Well, Robert Half’s survey asked the employees the same question, and here are the responses:

• Employees want organizations to allow them to take risks and influence important decisions. The good thing is up to 74% of workers in marketing and creative roles say their organizations allow them to make decisions. But only 33% of administrative employees say the same.
• Employees want constructive feedback. Yet, only 53% of workers say they receive feedback from managers.

• Employees want their organizations to treat them fairly. Only 67% of women are treated fairly vs. 69% of men. Only 57% of women think they are paid fairly vs. 59% of men.

Besides these, there are also other interesting findings. For instance, interest in a job is higher among workers who are in their second year. So, managers should focus on finding the right attraction factors to encourage employee engagement.

Strategies To Create Highly Engaged Employees

7. Organizations that implement and use technology (like collaboration tools and performance tracking software) for employees see 7x more engagement.

(O.C. Tanner Institute, Gartner)

O.C. Tanner Institute’s employee engagement statistics reveal that collaboration tools for teams and communication software can increase the probability of improvement across multiple cultural metrics. For context:

• 61% of workers say that they meet and form friendships at the workplace.
• 70% of workers say they value interaction with colleagues.

As outlined in the remote work statistics, communication, collaboration, and loneliness are the top challenges for remote employees and employers.

To address these challenges, the O.C. Tanner Institute suggests that companies adopt technologies that complement remote employees and teams. This could include online collaboration tools to facilitate seamless teamwork, as well as all necessary work-from-home tools to keep employees productive and satisfied.

Gartner also suggests managers use employee monitoring tools. It is important to keep in mind that monitoring employee emails and tracking work computer usage does not necessarily convey a negative message to employees. In fact, employees value transparency from their managers in this regard.

For context, when managers explain the reasons for monitoring, 50% of workers say they are comfortable with managers monitoring them.

8. Daily feedback from managers can increase employee engagement by up to 3 times.

(Gallup — State of American Managers)

Gallup’s employee engagement statistics reveal that, most often than not, managers or leaders are responsible for creating a variance in team engagement.

In fact, more than 50% of workers have left their job to get away from their managers.

Gallup research suggests that a large proportion (51%) of managers are not actively engaged. And up to 14% of managers are actively disengaged.

It is worth emphasizing that employees who are supervised by engaged managers are 51% more likely to experience a sense of engagement compared to those who are managed by disengaged managers.

Companies that hire talented managers see a 30% increase in engagement rates and a 19% decrease in employee turnover rates.

As indicated by statistics on project management, over 30% of organizations claim to have inadequately trained project managers. In addition, more than 70% of managers in SMBs have no certification.

The good thing is 51% of organizations now say they are willing to hire managers with accreditation only.

Besides hiring managers with certification and talent, companies should direct managers to adopt these behaviors to address the issue of low employee engagement:

• Focus on employee strengths: 75% of workers who feel their managers are focused on their strengths are engaged.
• Set goals for workers: more than 75% of workers who agree that their managers help them set their goals and objectives are engaged.
• Become approachable: Employees who view their managers as approachable and engaged tend to be more engaged themselves compared to those who don't perceive their managers this way.

9. Organizations with effective employee recognition programs realize 31% lower voluntary turnover than those with ineffective recognition programs.

(Deloitte — Employee Recognition)

Deloitte’s employee engagement statistics reveal that workers want recognition for significant accomplishments.

For instance, 85% of workers wish for a verbal or written “thank-you” for their day-to-day accomplishments. Still, 63% of workers say they are not recognized at work.

47% of workers want new career advancement opportunities for significant accomplishment. 23% want a salary boost, and 21% want a high-performance rating for significant achievement.

Additionally, workers want recognition for success in a project (40%), expertise (24%), efforts (20%), and living up to company values (16%).

The statistics on engagement suggest that employees are not very interested in receiving salaries and bonuses as a recognition for their achievements at work. Instead, they prefer to have access to new opportunities for personal and professional growth.

Deloitte suggests that organizations should provide workers with the best online course platforms, so employees can discover and learn new skills. As indicated in the eLearning statistics, 23% of workers quit their jobs due to a lack of development opportunities.

Deloitte also reports that there is a direct correlation between recognition programs and employee engagement. When surveyed on how companies could promote engagement, 58% of respondents suggested that offering recognition would be a practical approach.

Additionally, Deloitte suggests businesses use reliable performance management tools so managers and leaders can get an in-depth view of employees’ activities and assess their performance.

This will help companies focus on strengths and weaknesses and recognize workers for their efforts.

10. Organizations with a strong employee experience program see a 35% increase in employee engagement compared to those with ineffective or no employee experience programs.

(Willis Towers Watson)

Before the pandemic, only 56% of organizations emphasized employee experience (EX). However, now, 9 in 10 organizations say that enhancing the employee experience is a crucial priority for the next three years.

Organizations with effective EX programs are 2.7x more likely to report higher employee productivity. Not only this, organizations with effective EX programs are:

• 32% more likely to have competent managers that can communicate and manage teams.
• 28% more likely to have senior leaders that can set priorities and explain companies' goals and objectives to workers.

Organizations with effective EX programs also report 90% higher employee retention rates.

Organizations need to focus on several areas to enhance employee experience, including creating flexible work environments, professional development, and fostering an integrated company culture. They must work on all these aspects to drive employee experience.

Additionally, companies that use technology report high employee experience. For context, 3 in 10 organizations say that technology has helped them create an integrated company culture, in turn improving employee experience.

The good news is 66% of organizations have already invested in emerging technologies to build and provide better employee experience.

11. The three areas that most companies focus on improving after conducting an engagement survey are communication (33%), employee development (26%), and performance development (19%).

(HRZONE)

The reason for employee disengagement differs from company to company. HRZONE’s survey reveals the most common factors that a majority of organizations work on after conducting an engagement survey.

While there is no specific set of key drivers for employee engagement, having a business strategy and plan is crucial for driving employee engagement. For instance, 65% of businesses that have an engagement strategy are satisfied with the results, vs. 53% of businesses that do not have one.

Employee Engagement Statistics: Remote Workforce

12. Employees are 41% more likely to be engaged in a hybrid work environment.

(O.C. Tanner Institute)

According to O.C. Tanner Institute's employee engagement statistics, both individual and collaborative work are productive. However, employee productivity is higher when employees can do work outside the office.

Many workers desire a balance between remote and in-person work. For instance, 71% of workers want to work remotely. But 67% of employees also value in-person interaction with their colleagues.

Workers primarily want a mix of both cultures because they feel they cannot advance their careers in a full-time remote position.

O.C. Tanner Institute’s report suggests that organizations should offer their employees the best of both worlds. Besides creating hybrid work environments, organizations should also focus on employee career advancement opportunities. For instance,

• Organizations focusing on career growth for a hybrid workforce realize 115% more engagement.
• Organizations that create development opportunities for hybrid workers by creating new skills in their current roles report 3.7x higher engagement.

Employees' Expectation From Companies

13. 81% of employees say their physical safety is important to them.

(AlertMedia)

In contrast, only 58% of employers say employee physical safety is a priority in their organizations.

97% of US employees say they want to feel safe at work. Yet, 71% of workers think their employers have taken adequate steps to make them feel safe.

79% of employees believe their employers only care about their productivity and not safety. Employees’ concern for safety is not just a misapprehension; up to 83% say they have experienced an emergency at their organization.

41% of workers say their organization did not warn them about the potential dangers at their destinations.

AlertMedia’s employee engagement stats reveal that 38% of workers regularly travel for their work. Some 78% of travel managers say that the frequency of business trips will increase in 2023.

However, as much as 66% do not feel highly safe while traveling for their work. Some 47% of workers say they do not know how or who to reach when they expect dangers while traveling for work.

Here’s what employees respond with when asked about the scenarios they are more concerned about:

14. 36% of employees say their organization should provide a direct line of communication that they can use during emergencies.

(AlertMedia)

AlertMedia employee engagement survey also asked employees what efforts of organizations will make them feel safer at work. The responses were as follows:

• 36% of employees say their organization should provide a direct line of communication that they can use during emergencies.
• 35% of employee organizations can communicate about safety plans clearly.
• 31% of employees want their organizations to be more transparent about safety incidents.
• 30% say they want the organizations to provide more training and drills.
• 25% say organizations should make reporting or giving feedback about a safety incident easy.

15. 77% of employees feel their mental health is “extremely important” to them. But only 45% feel their employer also feels the same.

(AlertMedia)

Similar to physical safety, most employees do not believe their employers are concerned about their mental health. AlertMedia’s employee engagement statistics reveal:

• Only 3 in 10 employees say their organizations make active efforts or programs for mental health.
• Only 4 in 10 employees say their organizations provide resources to support mental health.
• And only 34% of employees say they can have an open dialogue about mental health in their organization.

However, a significant finding is that up to 25% of employees feel that they will stay longer with the organizations if their employers care about their mental health.

The Hidden Costs of Disengaged Employees for Organizations

16. 61% of employees are willing to quit organizations if they feel actively disengaged.

(Robert Half)

Robert Half’s employee engagement stats reveal that 74% of employees feel that their organizations are ineffective in keeping them motivated.

71% of workers say they will leave the organization if the organization’s core values do not align with their own.

The same report also mentions that most workers (87%) are satisfied with their job roles. However, 32% plan to change their job for a salary boost and career development opportunities.

Robert Half’s survey reveals that replacing employees costs companies over 96% of the employee’s annual salary. Besides the initial cost of hiring, companies also have to face other financial fallout, like spending on training new employees.

For this reason, Robert Half suggests companies use applicant tracking software, so they can hire the right staff in the first place.

In addition, companies should talk to employees and understand their fundamental issues to retain employees. That is, organizations should be proactive instead of reactive and identify the motivation behind employee retention.

Overcoming Barriers to Employee Engagement

17. Employee engagement (34%), staff retention (39%), and hiring top talent (33%) are the biggest challenges for HR professionals.

(Seenit)

The employee engagement statistics from Seenit recommend that HR professionals prioritize employee benefits, good internal communications, and career growth opportunities to cultivate engagement within the organization.

Additionally, HR professionals should focus on preventing disengagement triggers from the outset, starting with the onboarding process, which is a crucial time for introducing organizational culture.

The onboarding experience can have a significant impact on engagement levels.

For example,

• 73% of workers say that being involved in a company’s culture keeps them engaged
• 56% of workers say that clear goals and objectives are the most encouraging factors at work.

Seenit also suggests that HR professionals motivate their workers to improve staff retention and other business benefits.

What Do These Employee Engagement Statistics Mean To Your Business?

As the employee engagement statistics reveal, organizations with high levels of employee engagement have productive employees. Employees engaged in their work contribute to the success of the organization through increased innovation, collaboration, and overall performance. However, creating employee engagement programs is a challenge for many organizations.

Most companies conduct annual employee engagement surveys that include questions on leadership, job satisfaction, culture, and work/life balance. However, this is a lengthy cycle, and the administration often fails to act on feedback.

Employees view engagement surveys as compliance exercises and feel a lack of care from the organization. Organizations must understand that engagement is an ongoing process embedded in the company's culture.

To engage employees, organizations should prioritize employee satisfaction, meaningful conversations with managers and colleagues, and growth opportunities. They should use the individual strategies outlined in the guide and embed engagement in the organizational culture.

In addition, they should make sure that they are doing things right in all areas. Ultimately, employees feel engaged if they feel included.

Sources

1. Gallup – State of Global Workplace
2. Deloitte — Employee Engagement
3. AlertMedia – The State of Employee Safety in 2023
4. Robert Half — State of Employee Happiness
5. O.C. Tanner Institute – Rethink-2022-Global-Culture
6. Gallup — State of Managers
7. Gartner – The Future of Employee Monitoring
8. Willis Towers Watson – 2021 Employee Experience Survey
9. Robert Half – Building a happier workplace, one job at a time
10. Deloitte — Employee Recognition

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