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Employee engagement can help companies combat and thrive in tough economic times, and before we go into some employee engagement statistics that can help HR leaders improve productivity and job satisfaction, let’s first define this important term.
What is employee engagement?
Employee engagement is a measure of the enthusiasm, emotional connection, and dedication workers have to their organization and its mission. People often confuse employee engagement with employee satisfaction, but engagement is centered around motivation and purpose, not just happiness.
To promote employee engagement, employers should focus on key drivers of a supportive culture, like increased recognition and frequently soliciting and acting on feedback. Employers should listen to their employees and offer the necessary resources for employees to grow in their careers and develop into future leaders.
12 employee engagement statistics you need to know
Here are nine statistics that emphasize how thoughtful employee engagement strategies can truly transform your work environment.
1. Just one in three U.S workers are engaged at work.
Despite companies’ ongoing efforts to improve workplace culture and employee satisfaction, only 32% of U.S. employees report being fully engaged at work. This figure reveals a stark reality—nearly 70% of the workforce is either “not engaged” or “actively disengaged.” Engaged employees are those who feel a deep connection to their work and the organization, contributing enthusiastically to its success. These workers are not just productive but also creative, innovative, and dedicated to achieving results. It’s a wake-up call for businesses: employee engagement is not just a “nice-to-have,” but a critical driver of profitability and long-term success.
2. Singapore has one of the lowest employee engagement rates at 13%.
Singapore’s low employee engagement rate is attributed to several factors. The demanding work culture often results in long hours, causing increasing burnout and quiet quitting. Additionally, a lack of career development opportunities leaves many employees feeling stagnant, while cultural attitudes prioritize job security over personal fulfillment. To enhance engagement, organizations must focus on improving work environments, promoting growth opportunities, and fostering a better work-life balance.
3. 2.7 million Australian workers plan to leave their current job in the next year.
Organizations’ spending on diversity, inclusion, and mental health practices has already reached $27.8 billion in Australia, yet the number of employees who plan to quit their jobs is at all-time high. This trend is driven by a desire for a better work-life balance, career progression, and higher salaries. Many Australian employees are dissatisfied with their current roles, prompting them to seek opportunities elsewhere. This trend reflects broader concerns about employee engagement and retention in the Australian workforce, emphasizing the need for employers to address employees’ needs to retain talent.
4. Organizations with highly-rated cultures of recognition are 2.5 times more likely to see improved employee engagement.
Establishing a culture of recognition is a tough, but necessary, part of an employee engagement program. The best recognition is specific, frequent, and genuine. It reinforces behaviors that line up with an organization’s goals, demonstrates care for employees’ well-being and in turn increasing job satisfaction and productivity.
5. 64% of HR leaders say an always-on feedback tool is essential to an engagement listening program, but only 20% have this kind of tool in place.
Employees want to give feedback, but they will become disengaged if you don’t act on their input quickly. Although nearly 40% of organizations still use them, annual surveys aren’t the answer. By the time results are compiled, acting on them is too late.
If you want to show employees that their voices matter, use always-on feedback tools like AI-powered HR chatbots. These tools are available to accept input 24/7, and they encourage employees to give further details regarding their feedback without interfering with everyday work. Employees can engage with bots at any point in time, rather than waiting to share their thoughts once a year. On the back end, AI chatbots learn what employees need and suggest best practices for managers to take appropriate action.
6. 58% of employees wish their company conducted employee engagement surveys more frequently.
Although there is a clear connection between the frequency of surveys and engagement, only 21% of companies conduct engagement surveys three or more times a year. The workplace is constantly changing. To keep engagement high during periods of intense growth or unforeseen circumstances, leadership teams need to find ways to check in with their employees more often.
One way to do this is to leverage pulse surveys 一 quick surveys sent weekly or monthly to get a “pulse” on how employees are feeling and prevent burnout. Pulse surveys can ask questions concerning job function, professional development, relationships, and other key aspects of engagement. Managers can use pulse surveys to keep a real-time check on engagement and then collaboratively come up with an action plan to address any issues with their team. For HR leaders and upper management, pulse survey results are a great opportunity to identify and address problems facing the organization.
7. 71% of executives say that employee engagement is an important contributor to organizational success.
It’s hard to think of reasons why companies shouldn’t concentrate on employee engagement. But if you needed any further convincing, a Harvard Business Review report found that a highly engaged workforce maximizes a company’s investment in human capital, while simultaneously reducing costs associated with issues like turnover.
Investing in employee engagement means giving people the training they need to excel. It means encouraging them to pursue their passions, speak up about problems with company culture, and recognize the success of themselves and others. Financing employee engagement strategies shapes employees into the workers you need to drive organizational success.
8. Alignment with an organization’s values is the #1 predictor of employee engagement.
Everyone has personal values, so it’s key to find out if these are compatible with those of your organization. When employees feel that their company’s decisions and communication align strongly to their corporate values, they are half as likely to say they will job hunt and are nine times more likely to have high job commitment, compared to those who say culture alignment is weak at their company.
There are many ways you can build alignment at your company. Before interviewing candidates, list out qualities that might be good indicators of harmony between an applicant’s values and those of the organization. Make sure managers can connect each employee’s work to their intrinsic motivations in addition to company values. Offer professional development that is in line with the goals your company hopes to achieve. And be sure to communicate with employees often, particularly during this time of increased remote work. The employee engagement landscape is changing, but the more aligned your workforce is to your company values and culture, the better off it will be.
9. Only 20% of workers worldwide have managers who empower behaviors that induce engagement.
Do you trust your employer? A 2024 AWI research report found that just one in three employees say they trust their managers and leadership of their organization. But it’s not just the bigwigs that matter. Every manager is responsible for treating their direct reports with respect and driving employee engagement. Managers play an enormous role in the employee experience, so spending time and effort on manager training is worth it. Make sure managers know how to acknowledge the work of their employees, inspire them, and encourage them to develop the skills they need to shine.
10. Over 80% of employees struggle to find the right coach at work.
It is crucial that HR leaders and managers understand the differences between coaching and traditional management. Traditional management can lead to micromanagement. Many managers are afraid to hand over the reins, giving their employees small, monotonous tasks while taking on too much work themselves. This leaves employees bored and disengaged, and it risks burning out your managers.
Coaching, on the other hand, aims to understand the individual’s strengths and weaknesses, identify challenges and opportunities, and help them improve their performance and reach specific outcomes. Empower employees to own projects themselves, utilize their skills cross-departmentally, and brainstorm new ways to approach problems. Implement job rotations and encourage employees to include stretch goals in their yearly targets. Give employees the autonomy to decide how to achieve their objectives. When employees grow and thrive, don’t forget to take the time to recognize their successes!
11. Employees who say they know how to find a coach when needed are 2.2x more likely to say they are very engaged at work.
A recent AWI research study of 1,500 employees shows a positive correlation between coaching opportunities, employee engagement, and performance quality. While over 80% of employees say it is vital to have a coach at work who they can go to for professional advice, only 17% know how to find one when needed. In big organizations, coaching is often limited to people in leadership or select group of employees, and since not all managers are suitable coaches for their direct reports, more diverse coaching opportunities are needed to reskill and upskill your workforce, and keep employees engaged with new learning experiences.
12. Highly engaged business units see an 81% difference in absenteeism.
Disengaged employees in the U.S cost about $1.9 trillion lost in productivity annually. Those who feel actively engaged show up at work productively and consistently while having higher commitment to job quality and safety. A culture of recognition is the key to driving an engaging workforce. When employees receive recognition for their contributions and hard work, they are more motivated and engaged, leading to higher attendance and productivity.
Start building employee engagement with the right tools
There is a theme to these nine statistics — employee voice and employee recognition are indispensable pillars of an engaged workforce. That is why Achievers Listen and Achievers Recognize are built to give employees a voice and create a culture of recognition.
Achievers Listen is an end-to-end employee engagement solution that equips managers with real-time, personalized insights through pulse surveys and AI-powered chatbots. It integrates with Achievers Recognize, a comprehensive recognition and rewards program designed by social scientists to work seamlessly. Users of Achievers Recognize are 107% more likely to give their culture of recognition a high rating than organizations that don’t use recognition technology. Not only that, Achievers Recognize customers are 3.6 times more likely to give recognition multiple times per month and 36% more likely to see an increase in employee engagement than customers of other technology providers.
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