For many, employee engagement is a big mystery. It’s something they can’t quite put their finger on but know it has an impact on the bottom line.
Only you can answer the question of how to improve employee engagement. Why? Because your team is unique. Every group of people has their own personalities, preferences, and interests that motivate them in various ways.
With 2021 coming to an end and 2022 just around the corner, now is the time to take note of how your employees feel so you can make changes for next year. I have listed below some surprising statistics about employee engagement for 2022 that you should pay attention to.
But before we jump into the statistics, let’s understand what employee engagement is and its importance in a business.
What is Employee Engagement?
Employee engagement is a term used to describe the relationship between an employee and their employer. It’s about how connected they feel on the job, both intellectually and emotionally.
When an employee knows that their work matters and they are valued, then you have achieved engagement. An engaged workforce performs better than unengaged employees, and they take pride in their work and do more than is required of them.
Importance of Employee Engagement in a Company
Employee engagement is important because it can drive your business forward. Loyal workers are more likely to contribute ideas, be committed to their work, and will feel valued in the workplace.
Know that disengaged employees are not only costing you money, but they can also ruin your company’s reputation. A study conducted by Forbes found that 55% of people who quit their jobs did so due to a lack of career opportunities at their current workplace.
Studies show that businesses with engaged employees enjoy:
- Decreased turnover rates
- Higher productivity
- Less time spent on training new hires
- Improved customer satisfaction
- Increased sales
- Training and development
With all of these benefits, it’s easy to see why employee engagement is important. It’s something you should be continuously focusing on because it’s the key to achieving your company goals.
7 Surprising Employee Engagement Statistics You Should Know
While there are hundreds of impressive statistics on employee engagement, here are the top 7 stats you should really know about.
1. Over 85% of employees are not engaged at their work
According to a report by State of The Global Workplace, less than 15% of employees are actively involved. This means that a mere 15% of workers show a strong emotional commitment to their company and contribute fully at work.
You may be wondering why this is such a major issue. After all, it’s only a small percentage, right? Wrong! According to the same study, each disengaged employee costs your business up to $3,400 a year. Multiply that by the number of employees you have, and it’s easy to see why this is such a problem.
2. Highly engaged teams have a 21% higher profit margin
The same study by Gallup states that highly engaged teams have a 21% higher profit margin than disengaged ones. In addition, Gallup says that companies with at least one engaged employee for each disengaged employee can increase their net profit margin by 76%.
So if your business wants to achieve a 21% higher profit margin, it’s easy to see why you need to take action. The gains from this statistic alone could be life-changing. What’s more, 90% of managers agree that their employees’ attitudes and productivity drive the profits of their business.
3. Engaged employees are less likely to be stressed
A study at the University of Warwick in England found that employees who feel engaged in their work are less likely to suffer from stress-related illnesses. This is because they better understand what’s expected of them, and their job meets their psychological needs.
4. Low employee engagement costs companies $450-500 billion each year
According to a study by The Conference Board, disengaged employees cost U.S businesses $450-500 billion each year. That’s around 1% of America’s GDP! This is a significant problem that needs to be addressed.
Lack of employee engagement can impact your employees’ health and well-being, reduce productivity, increase turnover rates, and affect the overall performance of your business. In order to achieve success within your company, you need to create a culture where employees feel appreciated and valued.
5. Over 61% of employees are burned out on their existing job
A study from CareerBuilder says that 61% of employees are burned out on their job. One-third of employees say that they’re most burned out on their job by having too many tasks, not enough recognition, and a lack of advancement within their current position. With this in mind, it’s clear to see why employee engagement is so important.
Highly engaged employees are more likely to stay with your company for more extended periods. This means you won’t have to spend money finding new hires or retraining them when they leave your business.
6. Almost 70% of businesses have altered their physical surroundings to encourage healthy behaviors
A study by the American Society of Interior Designers says almost 70% of businesses have altered their physical surroundings in order to encourage healthy behaviors. This often includes setting up exercise rooms or fitness centers, providing more nutritious food options, and even changing office layouts to reduce long periods of sitting.
7. Engaged employees are 7x less likely to leave their current position
A study by Human Resources consulting firm Mercer found that engaged employees are seven times less likely to leave their current position than disengaged employees.
This is important for your business because a high turnover rate can be costly. In fact, the cost of losing an employee and having to replace them can be up to 2-5 times their annual salary!
How Do You Improve Employee Engagement?
It may seem like an impossible feat at first, but improving employee engagement isn’t as tricky as you might think. Here is an infographic from GetVoIP with the 7 best employee engagement strategies you can follow to improve employee engagement in your company.