36 Statistics on the Importance of Employee Engagement
Posted on 08/30/21 By Brittany K. King
What is employee engagement? By definition, employee engagement refers to the emotional connection a worker feels toward their employer. But in reality, it’s much more. Employee engagement helps individuals understand the purpose of their role and how they contribute to company success.
Engaged employees are high performers. To quote Simon Sinek, “When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.”
In short, you need to focus on boosting workplace engagement, and these 36 statistics on employee engagement will help.
Employee Engagement Statistics for 2021
There are many ways to increase employee engagement, from training and development opportunities to peer recognition programs.
In 2021, organizations must focus on increasing employee engagement in order to future-proof their workforce and ensure overall business success.
Employee happiness statistics
The saying “happy employees are productive employees” is not just a corporate cliché. It’s important to create an environment where your employees feel engaged and motivated in their roles.
The following statistics show how employee happiness can affect workplace productivity and satisfaction.
- 51% of workers in the United States say they get a sense of identity from their job.
- 13% of American workers are actively disengaged at work.
- 30% of American workers say their job is “just to get them by.”
- Only 20% of Americans are very passionate about their occupation.
- Happy employees are 12% more productive.
- Only 42% of employees are happy with the rewards and recognition offered by their companies.
- 36% of employees would give up $5,000 of their yearly salary to be happier at work.
- Only 46% of employees have a great deal of trust in their employers.
- Employees who are happy at work take 10 times fewer sick days than unhappy workers.
- Only 25% of employees who quit their jobs cite money as the main reason for leaving.
Employee engagement ROI statistics
Highly engaged employees are more productive, and productivity often results in higher revenue. Employees who are satisfied with their jobs are also less likely to turnover, which can be incredibly costly.
Simply put, unhappy employees will cost you. An engaged workforce can actually make (and save) money, as shown with these statistics on employee engagement ROI.
- Companies with happy employees outperform their competition by 20%.
- Happy salespeople produce 37% greater sales.
- Engaged teams generate 21% more profit than disengaged ones.
- Employers who increase their employees’ engagement by 10% can boost profits by $2,400 per employee a year.
- Actively disengaged workers cost the U.S. upwards of $550 billion in lost productivity per year.
- A highly engaged workforce is 59% less likely to find a new job at a different company.
Organizations with happy and engaged employees:
- Have 50% fewer workplace accidents.
- Have 41% fewer quality defects.
- See an 18% increase in employee productivity.
- See a 28% higher gross.
Company culture statistics
Company culture is a huge contributor to employee satisfaction. A toxic work culture is draining for employees and ultimately causes workers to lose motivation and seek other opportunities.
These statistics highlight why organizations should focus on building a strong company culture.
- 79% of U.S. workers say company culture is an important job satisfaction factor.
- More than 50% of CEOs believe corporate culture impacts productivity, creativity, profitability, company value, and growth rate.
- Only 34% of U.S. employees are engaged at work.
- 67% of employees with access to free food at work are “extremely” or “very” happy with their job.
- Close friendships at work boost employee satisfaction by 50%.
- Employees with a best friend at work are 7 times more likely to be fully engage in their work.
- 70% of organizations have adopted values-based employee-recognition programs.
- 60% of employees consider their colleagues to be the biggest contributors to job happiness.
- 57% of remote workers are satisfied with their job; only 50% of in-office employees agree.
Job satisfaction statistics
The top three factors that contribute to job satisfaction are job security, opportunities to use skills and abilities, and a company’s financial stability.
The following statistics show why individual job satisfaction is crucial to the workplace.
- Employees who feel their superiors treat them with respect are 63% more satisfied with their jobs.
- 83% of millennials say work-life balance is the most important factor when considering a potential job.
- 62% of employees in managerial positions report high job satisfaction levels.
- 72% of professionals say having more work benefits would increase their job satisfaction.
- 96% of employees believe showing empathy is an important way of improving employee retention.
- In 2019, only 50% of employees thought their CEO is empathetic.
- 91% of highly engaged employees report being satisfied with their professional development opportunities.
Providing training and development opportunities will help engage your workforce. Check out 39 Statistics that Prove the Value of Employee Training.