Many employees who are not engaged want a reason to be inspired.- Gallup.
Mary, a sales associate at a retail store in downtown Manhattan, is the quintessential engaged employee. She commits herself, is proactive, and works daily to realize the company's goals.
In the American workplace, finding engaged employees is uncommon. In fact, only 32% of the U.S. 135 million employee workforce feel engaged.
For leaders, this is an alarming statistic as engaged employees outperform disengaged employees and employee engagement is a key element in driving growth.
A close look at employee engagement statistics reveals the drivers of engagement.
Why is employee engagement vital?
Employee engagement matters.
Engaged employees like Mary are more productive, more engaged at work, and more likely to stay with their company. They also provide better customer service and help to create a more positive employee well-being and work environment.
As a leader, leading engaged employees yields dividends that ultimately are reflected in the bottom line.
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Employee engagement is the level of emotional and mental connection employees feel to their work, team, and organization.
Employee engagement can be influenced by a variety of factors, including a good workplace environment, the relationship between employees and higher-ups, a sense of meaning and purpose, personal learning and development opportunities, and feedback mechanisms, among others.
An example of high employee engagement is an organization taking full advantage of employee digital experience (DEX) to allow for a hybrid workplace, enabling remote employees to set their own schedules as long as they deliver on assigned work.
This might interest you: The Essential Leadership Statistics You Need to Know in 2023.
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Gallup's State of the Global Workplace 2023 reveals that an overwhelming 69% of employees are not engaged in the United States and Canada.
This tell-tale piece of data shows that many companies have actively disengaged employees in their ranks. However, this is not a unique challenge to North America, with the average global workplace survey engagement rate at only 23%.
For organizational success, it is imperative to have highly engaged employees. This translates to better-engaged teams due to improved collaboration, lower turnover costs, customer satisfaction, employee loyalty, higher retention, and an overall good workplace atmosphere.
According to the Bureau of Labor Statistics, the average employee absentee rate from work for employed full-time wage and salary workers is 3.6%.
The bureau defines absence as instances when persons who usually work 35 or more hours per week (full-time) worked less than 35 hours during the reference week for one of the following reasons:
Absenteeism is calculated using the following formula:
Absentee rate = (Number of absences / Number of available workdays) x 100
For example, a company with 10 employees who work 20 days per month. If there are 5 absences in total during a given month, the absentee rate would be:
Absentee rate = (5 absences / 200 available workdays) x 100 = 2.5%
This means that 2.5% of the available workdays were missed due to absenteeism.
The average national employee turnover rate for 2023 is 3.5%. This includes voluntary and involuntary turnover.
Voluntary employee turnover occurs when an employee chooses to leave their job for various reasons. These reasons may include better opportunities, career change, relocation, retirement, and leave of absence.
On the other hand, involuntary employee turnover occurs when the employer initiates the separation from employment. This can happen for several reasons, including poor performance, misconduct, layoffs, structural reorganization, and mergers or acquisitions.
Research by Pew research revealed that 51% of employees in America are satisfied with their jobs. Interestingly, 67% of all employees report being highly satisfied with their co-workers.
The source of discontent was primarily due to the absence of opportunities for work and improvement (33%) and compensation (34%).
Research by biworldwide revealed that 14.2% of employees with set goals are likely to be more inspired at work. Moreover, employees with goals are 3.6 times more likely to show more commitment to the organization's success.
A study by the Dominican University in California established that 42% of employees who write down goals are likely to achieve the goals.
A report by Gartner reveals that 82% of employees want organizations to view them as people with individual goals rather than resources.
66% of full-time employees in the U.S. strongly believe they lack work-life balance.
63% of people strongly favor a 4-day workweek to improve work-life balance.
32.8% of surveyed workers say that personal perfectionism is the biggest impediment when seeking a healthy work-life balance.
Those who work in hybrid arrangements were more likely to be satisfied with the how, when, and where they do their work (85% and 89%, respectively) than those who work in person (77%).
Remote workers reported being slightly more likely to have enough flexibility at work to be able to keep their work-life and personal life balanced (75%) than hybrid (67%) or in-person workers (66%).
A 2023 report by Achievers Workforce Institute revealed that 79% of employees feel undervalued due to a lack of appreciation and recognition at their workplace.
A report by Gallager reveals that 56% of employees say their organizations have revisited their employee value proposition in 2022, with only 28% believing this work to be well underway.
47% of employees say that supporting the adoption of new behaviors, systems, and processes (organizational agility) is their top priority. (Gallager state of sector report)
25% of employees say that empowering employees to deliver the best possible service (customer experience) is their top priority.
65% of employees in the US want more feedback.
Companies that invest in regular employee feedback have 14.9% lower turnover rates than organizations where employees do not receive feedback.
69% of US employees say they would work harder if they felt their efforts were being recognized through feedback.
43% of highly engaged employees in the US receive feedback on their job satisfaction at least once a week.
98% of employees in the US disengage from their work when they receive little or no feedback.
60% of US employees reported wanting feedback from senior management on a daily or weekly basis.
72% of younger workers, under the age of 30, want feedback on a daily or weekly basis.
Gallup estimates that the annual cost of employee disengagement in the United States is $1 trillion.
Disengaged employees are 18% less productive than engaged employees.
Disengaged employees are 37% more likely to take to absenteeism.
Disengaged employees are 60% more likely to leave their jobs.
The cost of replacing a disengaged employee is 1.5 to 2 times their annual salary.
Employees who have access to career development opportunities are 85% more likely to be engaged in their work.
74% of employees say that career development and career advancement opportunities are important to them when choosing a job.
63% of employees say that they would be willing to take on a new challenge at work if it meant that they could learn and grow.
Employees who feel that they have opportunities for career development are more likely to be satisfied with their jobs and more likely to stay with their company.
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Some of the factors that contribute to highly engaged workers include:
When there is clear communication: One of the drivers of employee engagement is clear communication. Management needs to establish the right communication style to facilitate engagement. When this is established, employees will know what is expected of them and how it ties to the company's goals and objectives.
A great starting place to ask is: is your workplace communication style effective?
Where there is recognition and rewards: Employees who feel appreciated and valued are more likely to be engaged and motivated. Psychologically, when we are recognized and rewarded we tend to put the best foot forward. Some ways towards this include bonuses, promotions, public recognition, and more.
Where there are opportunities for growth and development: Employees want to feel like they are growing and developing in their careers. If they feel that they are on a hamster wheel, engagement will probably take a nosedive. Providing opportunities for training, learning, and career advancement can help to keep employees engaged and motivated.
Where there is a good work environment: A positive work environment that is supportive, inclusive, and respectful can go a long way in keeping employees engaged. This involves having positive connections with coworkers, maintaining a healthy work-life balance, and having a feeling of purpose and meaning in their work.
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Employee engagement is critical to a company's success since it has a direct influence on productivity, morale, and overall performance.
Employee engagement reduces absenteeism a key element in enhancing overall productivity.
Engaged employees are more productive than actively disengaged workers and employees. According to Gallup, actively engaged employees are 21% more productive than actively disengaged employees.
Engaged employees are more likely to go the extra mile for customers, which leads to improved customer satisfaction. A study by Temkin Group found that companies with highly engaged employees achieve customer satisfaction scores that are 12% higher than companies with low employee engagement levels. A highly engaged workforce improves employee engagement, customer satisfaction, and leads to successful business with higher profits and fewer employee replacement workers and costs.
Engaged employees are more likely to stay with their company, which reduces employee turnover costs. According to a study by Dale Carnegie Training, companies with high levels of employee engagement have turnover rates that are 51% lower than companies with low employee engagement levels. Employee retention is key in reducing turnover and hiring rates.
Engaged employees are more likely to have positive relationships with their managers and colleagues. When employees are engaged, this leads to improved company culture and a more harmonious and productive work environment.
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When all is said and done, the statistics on employee engagement are clear – employee engagement is an essential ingredient for business success.
That's where Highrise comes in. We can help you to improve employee engagement in enable overall organizational success.
Our team of ICF-certified coaches, each with over 2,000 hours of experience, is here to help. We offer personalized coaching to unlock your team's potential, helping them grow both personally and professionally.
But it's not just about individuals. We work with companies to tailor employee engagement initiatives that fit their goals. By partnering with Highrise, you're investing in creating a higher employee engagement rate.
Sign up today and start the journey with us.