Last Updated: January 4, 2021
Table of Contents
Running a successful business boils down to ensuring your workers are productive, happy, and actively engaged with activities that move the business forward.
In today’s economy, the rate of employment is slowly declining in the US. It has become not only important but paramount that businesses try their possible best to retain their current employees.
Hence, we have pulled together the most telling employee engagement statistics for 2020 to help you understand how important employee engagement is:
Mind-Blowing Employee Engagement Statistics
The following fascinating statistics on employee engagement will show you a whole new world:
- 37% of employee consider recognition most important.
- Those teams who score in the top 20% in engagement experience a 59% less turnover.
- Only about 34% of the US workforce feel engaged.
- A Gallup employee engagement statistics poll reveals that 53% of workers in the US are non-engaged.
- Nearly 66% of all employees are disengaged.
- One in five employees is not confident that their manager will provide regular, constructive feedback on their work.
- Highly engaged employees are 87% less likely to leave their place of work.
- Globally, only 15% of employees are engaged in their work.
General Employee Engagement Statistics
Below are some raw data to help you understand how employees and business growth respond to engagement in their workplace.
1. 34% of the US workforce say that they feel engaged in their workplace.
Despite global employee engagement being at an all-time low, the US has reported its highest percentage of engaged employees since 2000. This is mainly due to an almost stable economy and an increased employment rate over the last few years.
More companies are beginning to understand the importance of retaining workers by keeping them engaged and committed.
2. Statistics about employee engagement reveal that 53% of US workers are not engaged.
The same poll by Gallup, which revealed that 34% of US employees are engaged, also reported that a sizable portion of US workers falls under the category “not engaged.”
Although not actively disengaged, this type of worker takes part in work activities without full commitment.
Also, they are never emotionally connected to their jobs. This means that they will resign from their respective job post, given the slightest opportunity.
3. Statistics on employee engagement show that 13% of US employees are actively disengaged.
With 53% already disengaged one way or the other, Gallup also reported that 13% of US workers are actively disengaged. This category includes employees who have a bleak experience at work.
4. Global employee engagement statistics report that only 15% of employees around the world are engaged in their work.
Despite countries like the US experiencing an all-time high for employee engagement, the rest of the world seems to be lagging, as reported by employee engagement survey statistics. Countries like the UK have a low employee engagement level of 8%.
However, in western Europe, employee engagement growth statistics reveal that only 10% of employees are reportedly engaged.
5. 47% of employees actively looking for a job say that they would prefer working for a company with an established and thriving culture.
Employees want to feel comfortable at their place of work. They like knowing that their contribution counts and are also appreciated.
That is why aside from creating a schedule that keeps your employees engaged, it is also essential to create an environment where they feel comfortable. A place they would look forward to coming into every day.
With employee a thriving company culture in place, your business will experience a high level of productivity.
6. According to employee engagement statistics for 2020, one in every three employees quit their job due to boredom.
Working in a particular job for years, performing the same routine over and over again each day can quickly get frustrating for some employees. The case is worse for those who are not in love with their job.
It was discovered that 33% quit because of boredom. The survey went further to reveal that 24% pinpointed a poor working culture as their major reason. Another 19% cited poor salary and compensation as the main reason for quitting their job.
7. 61% of American employees are reportedly burned out in their jobs.
Part of creating a thriving work culture for your company is finding a balance between employee engagement and employee health. Keeping employees engaged and fully productive shouldn’t lead to health compromise.
Unfortunately, this is the case with most jobs. According to employee engagement statistics, a high percentage of American employees are exhausted due to their work. 31% of employees report extremely high-stress levels at work. High-stress levels amongst employees will inadvertently lead to low productivity and a reduction in expected revenue of your company.
8. Only 25% of employers have an active engagement strategy for their company.
(Source: The Muse)
When interviewed, 90% of leaders think that an engagement strategy has an impact on business success. However, only a quarter of them have a policy in place to keep their employees engaged.
Given the increasing costs of replacing employees, business owners must start implementing strategies to help increase the retention of employees.
9. 84% of workers from the Fortune Best 100 Companies to Work For say that they look forward to coming to work every day, with the overall figure from all US companies pegged at 42%.
(Source: HR Technologist)
Successfully keeping all your employees engaged and committed to the task of moving the business forward is not just enough to ensure employee happiness. There needs to be a working culture that inspires, and also provides some form of comfort to team members.
Funny enough, many companies in the US lack most of these critical factors. This is why they struggle to maintain robust employee engagement. Statistics on employee engagement in the USA report that a low percentage of US employees anticipate coming to work.
10. 75% of employees who voluntarily quit their jobs do so because of their bosses.
(Source: The Muse)
A study carried out on 3,000 employees found that employees were more satisfied with their jobs (70%) and their coworkers (69%) than they were with their bosses (64%).
For companies, this can be a huge detrimental factor. Creating a unique work culture, and keeping employees engaged requires senior figures or bosses to communicate and work closely with every member of the team.
When there is a disagreement or bad blood between employees and their bosses, it may lead to disregard from an employee. It will inadvertently affect the workflow and productivity of both the individual and the rest of the team.
Statistics About Employee Engagement and Profits
When done properly, employee engagement can skyrocket the productivity of any team. Disengaged workers are always low in self-confidence and will seldom suggest anything new to team meetings.
However, engaged employees have boosted confidence. They carry that positivity around other team members who are also committed to the same task. Employee engagement and fulfillment statistics has it that companies with a higher percentage of engaged workers experience the highest ROI and revenue.
11. Companies that rank amongst the top 20% of companies with the highest engagement rate experience a 59% reduction in employee turnover.
They also report a 41% decrease in absenteeism.
This should not come as a surprise seeing that engaged employees are always committed, and eager to perform their best job. They have also shown a high degree of participation in activities that concern the company. Most importantly, they show up to work every day with a smile on their faces.
12. All US employers spend a total of $1.1 billion yearly looking for replacement workers in their various businesses.
Over the last few years, the American economy has achieved a stable state. More jobs have been created, debts are low, and existing companies are hiring more people. This availability of jobs has made it even more difficult for some businesses to retain their existing workforce and hire new ones.
Nowadays employees are spoilt for options about where and whom to work for. This means that if your company is not providing the right incentive or work culture, they can easily move over to the next employer.
According to employee engagement statistics, US employers are now spending $2.9 million per day searching for new employees or replacement workers. This amounts to over a billion dollars yearly.
13. Companies with a high level of employee engagement are more profitable by a factor of 21%.
According to research by Gallup, high employee engagement results in increased profitability. An engaged team will experience higher productivity, better customer engagement and retention, and increased revenue overall.
14. Employers in the US lose over $5,000 every time an employee leaves the company.
Employee retention has become a critical factor to businesses in recent times, given the cost of recruiting a new hire into an organization.
According to employee engagement stats for 2020, it cost businesses $4,129 on average to hire new talent. Another $986 goes to bring the new hire up to speed about activities and engagements going on in the company. Needless to mention, this number goes up further if the employee you are trying to replace is a super productive one.
15. Disengaged employees in the US cost their employers $450 to $500 billion each year.
Disengaged workers are a menace to the workplace. They shy away from responsibilities and contribute less or even nothing to brainstorming sessions. They lack motivation, spread bad vibes among employees, and most importantly, drain the productivity of your business.
Companies should steer clear of disengaged workers, as employee engagement stats prove.
16. Companies having a thriving culture experience a revenue boost of 4X.
Company culture and employee engagement are tools that go hand in hand for any business. A major long term study, spanning 11 years, revealed that companies with the best corporate culture experienced a 682% growth in revenue.
Another set of companies under supervision over the same period with a poor corporate culture and disengaged workers experienced only a 166% growth in revenue over the same period.
When properly calculated, group A, with a thriving culture and appreciation for its workers, achieved 4X revenue growth more than group B.
Employee Engagement and Productivity Statistics
A highly engaged workplace will most likely achieve higher productivity. Check out the stats below to understand how employee engagement affects the productivity of your business.
17. 37% of employees consider recognition as most important in boosting their productivity level.
Employees that receive recognition for their excellent work are always motivated to do more with increased self-confidence. Regardless of whether it is done privately, publicly, or in a written form, the effect is still the same.
Failing to recognize the hard work of your employees is one surefire way to reduce engagement in the workplace. Other factors like autonomy, higher compensation, promotion opportunities, and professional training also play crucial roles.
18. According to employee engagement statistics, 69% of employees say that they are ready to work harder if their bosses appreciated their efforts better.
The whole concept of employee engagement is to get your workers to be fully committed to one goal – the company’s goal. Getting employees to commit to the intent of an organization is not an easy task.
Despite what most employers think, a higher paycheck does not automatically mean you have yourself employees who are ready to fully commit. However, showing appreciation, concern, excellent communication skills, and offering some financial incentives can go a long way to boost productivity.
19. Employee engagement stats reveal that employees are 4.6 times more likely to feel empowered to perform their best job if they are given assurances that their opinion counts.
In this age and time, people don’t want to be used. Nobody wants to do the same thing over and over again for a lifetime, especially not Millenials and Gen Z. Employees today want to be heard; they want to feel like they are also making a big impact on the company.
Take a closer look at the situation, and you will find that sometimes these employees are filled with first-hand information more than the so-called decision-makers of an organization. In addition to proving recognition, feedback, and incentives, there needs to be a window where the suggestions and ideas of employees are put into consideration.
Employee Engagement and Retention Statistics
It is more comfortable and productive to hold unto highly engaged employees as they are easier to deal with as you scale your business up. Disengaged workers are less committed and will always bail out at the slightest opportunity. Here are some employee engagement stats to help you understand how employee engagement can boost retention rates.
20. Employee engagement statistics reveal that highly engaged employees are 87% less likely to leave their place of work, compared to disengaged employees.
(Source: The Muse)
The whole point is to encourage employee retention as well as boost productivity. If the numerous recent surveys are to be considered, then employee engagement strategies are serving their purpose.
A significant proportion of engaged workers interviewed from various fields are not ready to quit their job just yet. What’s more, 69% of new employees are more likely to stay a minimum of three years in an organization if they enjoy their onboarding program. This entails the various programs that were used to bring them up to speed about the company culture and engagement routine.
21. According to employee engagement statistics for 2019, 63.3% of employers agree that retaining existing employees is more complicated than hiring new ones.
A research carried out on 600 US companies saw 63.3% of them agree that employee retention is more complicated than the hiring process. This may be due to the necessity of keeping employees engaged. However, using tools like the best HR software can help turn this trend around.
22. 81% of employees say that they are considering quitting their current job.
Keeping employees engaged in this time and age is an utmost necessity for businesses. According to employee engagement survey statistics, even though most employees are not looking for a job at the moment, 81% of them would consider quitting their current position if the right offer comes along.
Also, a good percentage (74%) say that they would take a pay cut if the new job offers a thriving culture that is ideal for their growth. This explains why organizations need to take employee engagement and corporate culture seriously.
23. 96% of employees cite empathy as an often-overlooked factor that is also important for employee retention.
As leaders and managers, emotional intelligence is one sure way to get closer to all of your employees. Despite not being a necessity, people who are aware have found it useful in helping them to get closer to each employee. Even the workers, one way or the other, agree with the fact that showing empathy is a crucial factor in the workplace.
Employee Engagement and Customer Satisfaction Statistics
Customer satisfaction is the end goal of every business, and it is a real issue. The following statistics will further expound on this.
24. Companies with high employee engagement statistics had 89% greater customer care satisfaction.
Engaged employees are committed and passionate about moving the business forward. Since customer service is one of the major deciding factors about how successful a company will be, you can be sure that these engaged employees will handle it with the utmost care and precision.
25. Companies with high employee engagement stats have a 50% higher customer loyalty than those with poor employee engagement.
Customers respond to convenience, efficiency, and friendliness. Highly engaged employees will always pay closer attention to details, unlike the disengaged worker. Highly engaged workers will always look for a means to increase customer loyalty.
Your employees are – before anything else – human. And humans like comfort and recognition.
The recent uproar of various jobs in the country has promoted the need for employers to retain their most productive and priced employees. With the constant threat of employees switching jobs for higher pay, it has become paramount for businesses to engage their workers and get them committed to the growth of the company.
Is your company taking the right steps to ensure the utmost employee engagement? If no, then now is the time to act. Use our employee engagement statistics as a starting point.