Updated: November 07, 2022

Employee Engagement Statistics & Facts for 2023

This is our list of essential employee engagement statistics and facts.

Employee engagement statistics highlight employees’ emotional and psychological dedication to their employer. These reports come from sources like surveys and studies. Understanding these facts helps leaders to improve employee engagement. Engaged employees are excited about their job and their employer. Engaged professionals are invested in the company’s success and motivated to accomplish goals and achieve success.

These figures are related to employee engagement best practices and help leaders develop more effective employee engagement campaigns. Many of these ideas pertain to virtual staff engagement and correlate with quiet quitting statistics.

We will continue to keep these statistics on employee engagement updated as a useful resource for you and your audience.

Employee engagement statistics [free to cite]

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1. 15% of employees feel engaged in their workplaces

According to Gallup’s recent report, only 15 percent of employees are actively engaged in their jobs. Therefore, up to 85 percent of the workforce worldwide either have a negative perspective about work or are more neutral. According to the survey, 33 percent of US workers are engaged at work, approximately twice the worldwide average.

On the other hand, the rate of employee engagement in Western Europe is at 10 percent. In the United Kingdom, employee engagement is at an all-time low of only 8 percent and has declined steadily for many years.

2. 73% of employees are deliberating on quitting their jobs

A 2021 study by Joblist shows that up to 73 percent of workers are willing to leave their current positions if presented with the right offer, even if not currently seeking another job.

Interestingly, money is the primary motivation for switching jobs. About 74 percent of younger employees would willingly take a pay cut to work at their dream workplace, and 23 percent of those looking for a new career would not need a pay raise to accept the position.

Maintaining positive relationships with coworkers and a healthy work-life balance is essential for employee retention. Employers should be wary of a “domino effect” in the workforce, where employees seek new employment after several coworkers leave in succession.

3. Companies with high employee engagement record 21% better profitability

According to a Gallup meta-analysis on employee engagement, companies with high levels of employee engagement generally have 21 percent greater profitability than units in the lowest quartile. Such companies also have 17 percent higher productivity.

A high employee engagement rate improves customer service, productivity, and retention. Worker engagement and productivity are critical to a company’s success. Therefore, all workers should access the most effective training and tools available. Managers in successful firms are responsible for ensuring that their workers are aware of their responsibilities and receive opportunities to advance their careers.

Meanwhile, according to a recent Interact/Harris Poll, 91 percent of workers believe that their managers’ communication skills are lacking. According to the Edelman Trust Barometer, almost one in three workers do not trust their bosses.

4. Companies lose $450-500 billion annually due to low employee engagement

A study by the Conference Board on workplace engagement discovered that disengaged workers cost American businesses $450-550 billion annually. Disengaged employees are less responsible and accountable for their attitudes, behaviors, and motivations, and lower overall productivity and work quality.

The research advises companies to promote personal agency and employ tools to assess and sustain emotional engagement. It is also critical to link workers’ efforts to the organization’s goals, show appreciation, and promote cooperation.

5. 47% of employees in the US believe their job is merely to make ends meet

Pew Research published workplace data that reveal a divide among Americans over attitudes towards employment. Some professionals view jobs as subsisting, while others consider working a source of meaning and self-expression. When workers have a feeling of purpose at work, the chances of engagement are higher. In the United States, 47 percent of workers claim their job is a way to get by, while the remaining respondents either have multiple jobs or did not respond.

6. A great company culture contributes to a 4X increase in revenue

Long-term research by Gallup found that organizations with great corporate cultures, an emphasis on all-around leadership, and a high level of customer and employee appreciation increased their revenue by 682 percent.

Throughout the 11-year evaluation period, organizations without a flourishing corporate culture increased revenue by 166 percent. This stat shows that strong corporate culture contributes to four times higher revenue growth. Therefore, companies need to strengthen their culture and energize their workforce.

In this study, 47 percent of workers considering leaving their current roles cite company culture as their primary reason. To boost staff retention and profitability, focus on strengthening your business’s culture.

7. One-third of working adults claim boredom is their primary reason for leaving their current position

In a 2018 Korn Ferry survey, 33 percent of respondents cited boredom and a desire for new experiences as the primary reasons for quitting a job.

In this survey, 24 percent of the respondents say that the work culture did not align with their values. Only 19 percent of those who left their jobs cited a desire for a higher wage as their primary motivation for leaving.

One of the essential management responsibilities is to ensure that workers have adequate challenges and variety on the job. Without the opportunity to grow and learn, employees lose interest in their work and search for new positions.

As employees’ abilities and competencies grow, so does the company’s profitability.

8. 12% of employees quit their jobs for better pay

Employee engagement statistics from Pew Research show that 89 percent of employers believe that workers leave for another job to get better pay. However, the reality is that compensation is not the primary driver of employee turnover. Other factors such as corporate culture and office relationships weigh more heavily in decision-making.

9. 43% of employees are dissatisfied with their career path

Employees seldom begin new positions with plans to quit the company shortly after. However, it does happen from time to time. According to Pew Research, 43 percent of workers left a firm they felt had invested in them. A company’s retention rate is higher when it takes the time to demonstrate its workers’ part in its expansion plan.

10. Successful employees are four times more likely to work for a company with better opportunities

Recent employee engagement statistics from Gallup show that thriving workers are four times more likely to work for a company with swift decision-making and the resources to carry out their duties efficiently. Over 56 percent of employees value systems that help them enhance their abilities and prepare for new positions. This improvement system works by providing individualized and simplified professional development opportunities.

11. 29% of employees are satisfied with their career advancement prospects

SHRM’s 2017 Employee Job Satisfaction and Engagement Report reveals 29 percent of workers are pleased with the present career growth possibilities available to them at their companies. A whopping 30 percent of workers place a high value on professional and personal growth prospects. Yet, only 30 percent are satisfied with their present status. Therefore, firms should pay more attention to ensuring workers are aware of opportunities to progress professionally without quitting the company.

According to a Gallup study, more than 87 percent of millennials in the workplace believe that professional development is crucial, making the factor a priority for the younger generation.

12. By providing a positive onboarding experience, 69 percent of employees are more likely to remain in the company for three years.

According to research by Octanner on employee engagement, creating a solid onboarding program is the most effective method to welcome employees and boost engagement. A good onboarding process ensures quick employee integration and equips team members with resources for success.

Yet, many companies fail to provide a comprehensive onboarding program for new employees. Upwards of 22 percent of organizations have no formal onboarding program, while 35 percent of companies spend no money on onboarding. Only 37 percent of employers continue their onboarding programs beyond the first month.

13. Team leaders and managers contribute 70% to variance in team engagement

Workplace trust is crucial. A study from Gallup shows workers want their bosses to be open, proactive, and supportive of any changes that may affect them. Otherwise, employees will lose faith in their bosses. There is little doubt that a manager’s leadership skills affect employee well-being. Engaged employees are more productive, perform better, and inspire coworkers to do the same.

14. 37% of employees claim recognition is paramount

In a recent poll by Octanner, 37 percent of respondents said that acknowledgment was the most effective management strategy to promote an employee’s success.

Comparatively,  12 percent of workers want more independence, 12 percent more inspiration, 7 percent more salary, 6 percent more training, and 4 percent a promotion. These findings imply that the primary need of the workforce is recognition.

In a poll by SHRM on rewards and recognition, 43 percent of respondents preferred private but personal praise from managers. Meanwhile, 10 percent opted for public acknowledgment in the presence of other coworkers, and 9 percent preferred private written recognition.

According to a recent study by Bonusly, 84 percent of highly engaged employees received recognition for delivering their best on the job. Companies that reward and acknowledge their workers often have higher responsibility, accountability, and leadership.

15. Safety incidents are 70% lower in engaged companies and business divisions

According to Gallup engagement data, engaged employees are more aware of their environment. These workers pay attention to security measures and take the safety of their colleagues and their customers seriously. Highly engaged employees report a 70% decrease in security incidents and a 58% decrease in patient safety issues.

16. Compared to salaried employees, hourly workers are 10% less engaged

Employee engagement statistics from Gallup show that hourly workers have distinct requirements and concerns from salaried workers. This demographic believes that organizations should adopt solutions tailored to workers’ specific demands and requirements.

17. Only 20% of US workers have spoken to their boss in the recent six months about achieving their goals

According to stats from Gallup, disengaged employees are 2.5 times less likely to get weekly feedback than highly engaged employees. Employees are twice as likely to quit their jobs if they do not receive any acknowledgment for their work. Regular dialogue and feedback from managers are necessary to keep employee engagement high.

18. 79% of employees believe they would perform better if given more recognition

Employee engagement stats from Octanner show that employees expect acknowledgment or recognition for their efforts after completing a project. Nearly two-thirds of workers anticipate and think that adequate recognition would boost their overall performance. Recognition boosts employee morale, productivity, and engagement.

19. Only 25% of companies have a plan for employee engagement

According to a poll by Forbes, ninety percent of managers believe that an employee engagement plan is a key factor in company’s success. Unfortunately, 75% of these managers have no policy to keep their personnel engaged. Considering the rising expenses of replacing employees, company owners should consider starting to employ retention measures.

20. 75% of workers choose to leave their positions willingly because of their managers

According to a SHRM survey of 3,000 workers, employees are happier with their employment and colleagues than with their managers.

This sentiment can have a significant negative impact on businesses. Disputes between workers and their supervisors might lead to an employee’s lack of respect. The dispute can negatively disrupt the productivity and workflow of the employee and other team members. Senior managers and supervisors must collaborate closely with every team member to create a unique work culture and motivate workers.

21. Employers in the United States spend $1.1 billion a year on recruitment efforts to fill open positions

The American economy has stabilized in recent years. As a result, existing businesses are expanding their workforces, creating additional employment while reducing their debt. Because of the wide range of employment available, it has become even more challenging for organizations to retain current personnel and acquire new talent.

Nowadays, workers have an overabundance of options when choosing where to work. As a result, candidates may look elsewhere if an interviewing company fails to provide the necessary incentives or work environment.

According to data from Zippia on employee engagement, employers in the United States currently spend $2.9 million each day looking for new staff or replacements. This cost adds up to over $1 billion in a year.

22. US employers lose an average of $5,000 for every departing employee.

The expense of bringing a new employee into a company has made employee retention a vital issue for firms in recent years.

According to statistics from SHRM on employee engagement from 2020, replacing an employee costs employers $4,129 on average. Companies spend another $986 to educate new hires. If the team member you seek to replace is very productive, then this figure will almost certainly rise.

23. Companies with high levels of employee engagement record 89% higher customer satisfaction

According to Korn Ferry, statistics show that engaged employees enthusiastic about the company’s future are more likely to do their best work. The Demand Metric 2013 Employee Engagement Survey reported that firms with over 50 percent employee engagement often have up to 80 percent better customer retention. Providing excellent customer service is critical to a company’s long-term success.

24. 40% of workers who get insufficient training are likely to quit within the first year of employment

According to data from Middlesex University on employee development, engaged workers are less likely to hunt for a new job.

Training that helps workers achieve their long-term professional objectives is the most critical. Employee development also has the additional advantage of creating more productive employees and higher employee satisfaction and retention levels.

25. Inclusive and diverse organizations are 35% more likely to record higher revenue

This data from McKinsey shows inclusion and diversity are crucial for employee engagement. Team members from diverse backgrounds can develop groundbreaking innovations and ideas that benefit society. Such environments have a higher engagement rate as well. On the other hand, inclusion is critical since every worker must feel like they belong.

Final Thoughts

Organizations that believe employee engagement is not a primary concern should reconsider this position. Employee engagement statistics show that a lack of employee engagement is a major issue in today’s business environment and might cost your company a significant amount of money.

Due to the recent upheaval in numerous occupations around the nation, companies are feeling the pressure to hold on to their most productive and valued workers. Businesses must do all they can to keep their employees engaged and dedicated to the company’s success, or risk losing talent to competitors or other opportunities.

For more useful facts and figures, check out this list of team building statistics and this list of fun facts of the day for work.

How to cite these employee engagement statistics

When resharing these facts or infographic, please include a link to https://teambuilding.com/blog/employee-engagement-statistics.

We will continue updating this resource with useful employee engagement facts and statistics for your work.

Next, check out this list of ideas to improve employee satisfaction at work.

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People & Culture Director at teambuilding.com.
Grace is the Director of People & Culture at TeamBuilding. She studied Industrial and Labor Relations at Cornell University, Information Science at East China Normal University and earned an MBA at Washington State University.

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