The correlation is simple yet strong: the happier your employees are, the more productive they are. This leads to better performance, improved employee retention, and higher revenue growth. Your customers feel the impact too; engaged employees lead to higher customer loyalty.
Employee engagement is critical because it directly impacts these business outcomes. Plenty of research proves this point. Below, you’ll find the most relevant employee engagement statistics for 2022.
Employee engagement isn’t just a buzzword. Investing in tools and strategies to keep your employees engaged might just be the smartest business move you can make.
What is employee engagement?
Employee engagement is a priority for many businesses, but the exact definition varies from company to company.
Here’s a simple way to explain it: Employee engagement is a measurement of your employees’ attitude toward their work (and toward your company).
Highly engaged employees feel a strong positive connection to their job and to your company. when employees show a positive work-related attitude. They’re committed to your organization and enthusiastic about their jobs. They’re excited to contribute to your company’s success.
On the flip side, disengaged employees are the exact opposite. They aren’t excited about their work or your company. They’re unenthusiastic about their roles and responsibilities. They don’t care very much.
Described this way, it’s no surprise that employee engagement goes hand-in-hand with employee and company performance. As more and more studies show the connection between employee engagement and business performance, business leaders everywhere are taking notice and making investments in their employees' wellbeing.
Learn more about this year's most interesting employee engagement statistics and consider how they apply to your business.
Finding new team members is time-consuming and expensive. If you’d rather avoid constant recruiting, fostering high employee engagement might be just the ticket. Satisfied and happy employees stay longer at their job, and plenty of stats prove it.
“Organizations with engaged workers may have employees who are 87% less likely to leave”. — Deloitte
“High levels of engagement and enablement can improve staff retention by up to 54%.” — Hay Group
“In high-turnover organizations [more than 40% annualized turnover], highly engaged business units achieve 24% less turnover. In low-turnover organizations [those with 40% or lower annualized turnover], the gains are even more dramatic: Highly engaged business units achieve 59% less turnover.” — Gallup
“77% of companies focus on employee experience to increase retention.” — LinkedIn
“37% of engaged employees are looking for a new job, compared with 73% of actively disengaged employees.” — Gallup
“Current employees' engagement influences the quality of potential job candidates – 71% of employees use or have used referrals from an organization's current employees to learn about job opportunities.” — Gallup
“Employees with positive experiences are 52 % less likely to intend to leave their organizations.” — IBM
Customer service and satisfaction
Engaged employees consistently show up for your customers. They’re more committed to quality and safety. Unsurprisingly, customers feel the impact of employee engagement. Higher engagement leads to higher customer satisfaction and retention.
“Highly engaged business units achieve a 10% increase in customer ratings and a 20% increase in sales.” — Gallup
“Companies that work to actively engage employees have customer loyalty rates 233% higher than those who don’t.” — Aberdeen
“Employee engagement program users are 7x more likely to link employee performance with customers’ experiences.” — Aberdeen
A disengaged employee is an unproductive employee. The more fulfilled team members are at work, the more you can expect an increase in productivity. Engagement correlates with positive productivity measures across the board.
“Highly engaged business units realize a 17% increase in productivity.” — Gallup
“Work units in the top quartile of engagement see 17% higher productivity, 20% higher sales, and 21% higher profitability than those in the bottom quartile. — Gallup
“Highly engaged and enabled employees are 50% more likely than average to outperform their individual performance targets.” — Hay Group
“A laboratory experiment showed that increases in wellbeing are strongly associated with increases in productivity of up to 12% in a real effort task with incentives.” — Oswald et al
“The best companies at engaging and enabling their people achieve 4.5 times the revenue growth of those at the other end of the spectrum.” — Hay Group
“American businesses lose productivity worth $300 billion annually due to disengaged workers.” — Deloitte
“Organizations with highly engaged and enabled workers also exceed industry averages for five-year ROA, ROI, and ROE — by up to 60%.” — Hay Group
“Organizations with engaged workers may have employees who are 57% more effective than organizations with low engagement.” — Deloitte
”Workers with Employee Experience Index scores in the top quartile are more likely to report high levels of work performance than those whose scores are in the bottom quartile.” — IBM
“Employees with more positive experiences at work are much more likely to report significantly higher levels of discretionary effort. In fact, discretionary effort is almost twice more likely to be reported when employee experience is positive (95 % compared to 55%.” — IBM
“A meaningful increase in well-being yields, on average, an increase in productivity of about 10%.” — Harvard Business School
“Engaged employees make it a point to show up to work and do more work, with a 41% reduction in absenteeism.” — Gallup
“One in four Millennials (26%) surveyed rated employee satisfaction/ loyalty/fair treatment as the most important value supporting a business’s long-term success.” — Deloitte
“Your happiest, most engaged employees are 12% more productive than your disengaged employees.” — University of Warwick
Engaged employees stay at your company longer and are more productive in their roles. This leads to more satisfied customers and higher customer loyalty. It naturally follows that employee engagement also leads to impactful increases in revenue growth.
“The behaviors of highly engaged business units result in 21% greater profitability.” — Gallup
“Employee engagement programs help companies enjoy 26% greater annual increase in revenue.” — Aberdeen
“During the period 1984 to 2009, the ‘100 Best Companies to Work for in America’ had an annual four-factor alpha – a measure of excess stock market return – of 3.5%. Furthermore, they earned 2.1% higher stock returns than the industry average.” — Harvard Business School
“Organizations with highly engaged employees experienced a 3-year revenue growth rate 2.3 times greater than average.” — Deloitte
Employee engagement unlocks growth
Engaged employees benefit your business in so many ways.
There’s no foolproof, one-size-fits-all secret to keeping employees engaged, but there are proven strategies to drive engagement. Your employees want to work for a company where they feel valued and empowered.
Build a company culture that keeps them engaged and you’ll be miles ahead of the competition.
Meet the Author
Lawrence uses his decade of customer experience leadership to create content for B2B SaaS companies that love their customers. He writes on a broad range of topics, all with the aim of helping human-centered companies attract the right customers and empower them to be successful.