Over the past year or so we’ve blogged about many aspects of employee engagement. The infographic below pulls together some of the employee engagement statistics that we’ve found along the way. It is clear that employee engagement has a direct impact on service, sales, quality, safety, retention, profits and total shareholder returns. The decision to be engaged is made in workers hearts, not in their minds. Disengaged employees are definitely bad for business.
Key Employee Engagement Statistics
The Importance of Employee Engagement
- Engagement improves service, sales, quality, safety, retention, profits and total shareholder returns.
- Good communication is at the heart of higher engagement levels.
- The decision to be engaged is made in workers’ hearts, not minds.
The State of Engagement
- Engagement levels are the lowest since 2000.
- 13 percent of employees worldwide are engaged.
- Employee engagement is the lowest it’s been in eight years.
Trust, Management, and Leadership
- Where leaders model the desired behavior, employees are 55 percent more engaged.
- Employees that feel like their supervisors are supportive are 67 percent more engaged.
- Companies with 22 percent higher profitability than those businesses with low engagement rates.
- Companies are losing 20 to 25 percent of their revenue each year due to disengaged employees.
- Companies that have 60 to 70 percent of their employees engaged had an average total shareholder’s return (TSR) of 24.2 percent.
- Just a five percent increase in total employee engagement resulted in a 0.7 percent increase in a company’s operating margin.
- 60 to 70 percent of their employees engaged had an average total shareholder’s return (TSR) of 24.2 percent.
- When engagement dropped to 49 to 60 percent, TSR fell to 9.1 percent.
- Companies with less than 25 percent of their employees engaged had a negative TSR.
- Highly engaged organizations have double the rate of success over lower engaged companies.
- Companies with highly engaged employees have a 10 percent higher customer satisfaction rating.
- Employees who are committed to and enthusiastic about their work are 43% more productive than employees who considered it ‘just work’ or were unhappy in their position.
- A simple activity like naming an employee of the month can drastically raise their productivity and strengthen their emotional connection with their work.
- Companies with highly engaged employees have a 21 percent higher productivity
- The biggest driver for employee engagement was ‘a sense of feeling valued and involved.
- Employees are 87 percent less likely to leave an organization than the disengaged.
- Companies with high employee engagement experience lower than average staff turnover. Turnover rates drop between 25% and 63% depending on the industry.
- Companies with engaged workers experience: 65% less turnover (low-turnover organizations).
- Companies with engaged workers experience: 25% less turnover (high-turnover organizations).
- Companies with engaged workers experience: 48% fewer safety incidents.
- Companies with engaged workers experience: 41% fewer quality defects.
Sources / Further Reading
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