Employee engagement is an essential aspect of a successful business. It greatly influences employee productivity and turnover rates. An engaged workforce contains individuals who are motivated, willing to go the extra mile, and provide exceptional service. To give you more insight on what makes employees engaged, we have compiled 11 of the most significant employee engagement statistics you need to know in 2024.
Key Takeaways:
- Employee engagement is a collective effort.
- Employees want to be visibly recognized by their managers and peers.
- Psychological safety and diversity drive engagement.
- One-on-one meetings boost engagement in remote employees.
1. Employee engagement is rising globally (from 20% in 2020 to 23% in 2022).
Global employee engagement reached a record-high 23% in 2022, but the same cannot be said in the US workforce (from 36% in 2020 to 32% in 2022). On top of that, Gallup found that 18% of US employees are actively disengaged in 2022—a 2% increase from 2021.
Actively disengaged employees are more vocal about their dissatisfaction. This attitude can have a toxic effect on the organization—it can hinder productivity, erode team morale, or even sabotage projects.
(Gallup)
2. 64% of employees who are more recognized for their efforts are less likely to job hunt.
Employee recognition plays a critical role in employee engagement. According to the Achievers Workforce Institute (AWI) 2023 State of Recognition Report, employees who felt recognized reduced their desire to look for another job. The same report said that an employee should receive at least one recognition a month to make them more productive, engaged, and committed to their job.
(AWI)
3. Employee disengagement costs organizations up to $355 million in lost productivity.
When employees don’t feel any connection to their work or the organization as a whole, their motivation and performance will also diminish. This apathy will not only affect the individual’s output but also impact the organization’s overall efficiency.
(McKinsey)
4. Inadequate compensation and lack of meaningful work are the top two drivers of disengagement.
When employees think the compensation they receive is insufficient, they feel disvalued, making them feel less motivated in their roles. In the same way, when employees find themselves doing things that are not fulfilling or do not align with their values, they become disengaged. According to the McKinsey report, the top six drivers of disengagement among employees are:
- Inadequate compensation
- Lack of meaningful work
- Lack of workplace flexibility
- Lack of career development
- Lack of support at work
- Unsafe workplace environment
(McKinsey)
5. 63% of employees want to be visibly recognized.
Employees are not just looking for recognition for the sake of being recognized. In a poll conducted by Bonusly, most of the 2,000 respondents interviewed said that their favorite form of praise is making it visible to their peers. Furthermore, one out of five employees want to receive recognition from management. This goes to show how significant visible recognition is to employee morale.
(Bonusly)
6. 89% of employees say that psychological safety is essential in their workplace.
This study further stated that employees who feel psychologically safe in their workplace environment show higher levels of engagement. This sense of safety enables them to share their ideas and voice their concerns without fear of retaliation. Furthermore, social scientists now count psychological safety as part of people’s basic needs in addition to food, water, and shelter.
Meanwhile, workers who reported their mental health as fair or poor have 12 days of unplanned absences compared to the highly engaged who only have 2.5 unplanned absences over a 12-month period. If you translate that into dollars, that’s $47.6 billion per year in lost productivity.
(Workhuman, McKinsey)
7. Diversity has a significant impact on employee engagement.
According to LinkedIn, organizations with above-average levels of gender diversity are 46%–58% better than those who have no DEI program. The report says that engaged employees are more likely to outperform those who don’t have.
In a study published in the International Journal of Professional Business Review, organizations with a diverse workforce are more innovative and collaborative. They also have a high level of employee satisfaction.
(LinkedIn)
8. Employees still find tangible rewards the most fulfilling.
Employee engagement and recognition metrics might change, but it remains evident that tangible rewards have a significant impact on employee morale and engagement. According to the survey by Bonusly, 35% of employees want recognition in the form of bonuses, perks, and rewards. Meanwhile, 34% want salary increases as a form of recognition and 30% want health and wellness incentives.
(Bonusly)
9. Managers can significantly influence employee engagement.
Managers play a pivotal role in determining the levels of engagement within their teams. According to EngageRocket, they account for 70% of the variance in employee engagement scores across business units. A Gallup study says that if managers deeply understand what their strengths are and apply them to their work, their employees follow suit, which drives engagement up to six times.
This can only happen if organizations support their management team. However, the EngageRocket study further reveals that only 20% of the managers feel that they are supported by their organizations.
(EngageRocket)
10. One-on-one meetings drive employee engagement among remote workers.
After gathering and analyzing metadata from the top messaging and conferencing tools (Slack, Zoom, Webex, Teams, etc.), an HBR study found that remote workers who are more engaged have been in more meetings than those who are disengaged. Furthermore, remote workers who left the organization after six weeks had 67% fewer one-on-one meetings.
(Harvard Business Review)
11. Work flexibility boosts employee engagement in both high and low-wage workers.
This study shows that flexible work schedules have a significant impact on all income groups in terms of employee engagement. Gallup’s Global Indicator further showed that employees who work in a hybrid or remote setup are more engaged than those who work on-site.
(National Library of Medicine)
Bottom Line
The different statistics we presented about employee engagement show the critical importance it has on organizational performance. It also shows that there’s no one-size-fits-all approach to boosting employee engagement. Use these insights to further understand and discover what drives the engagement of your employees.
References:
Gallup Employee Engagement Indicator, Achievers Workers Institute, McKinsey (September 2023, July 2023) Bonusly, Workhuman, LinkedIn, EngageRocket, Harvard Business Review, National Library of Medicine
