22 Must-Know Employee Engagement Statistics [2023]: Trends, Benefits, And More

Research Summary. In the United States, employee engagement is essential to productivity and profitability. Although vital to a beneficial workforce and the continued success of the American economy, most Americans report feeling disengaged at work. After extensive research on statistics about employee engagement, our data analysis team concluded:

• 68% of the U.S. workforce is not engaged at work.

• Companies with the highest rates of employee engagement are 21% more profitable than their peers.

• Employees with the highest levels of engagement are 87% less likely to voluntarily leave their employer.

• 89% of human resources professionals agree that providing ongoing feedback and clear employee expectations are the best way to increase employee engagement.

• 69% of employees report that they’d work harder if they felt better appreciated at work, and 37% of employees consider recognition the most important factor for job satisfaction.

• Employee disengagement costs companies $3,400 for every $10,000 an average disengaged employee earns per year.

• Globally, only an estimated 21% of the workforce is actively engaged at work.

For further analysis, we broke down the data in the following ways:
The Cost of Disengaged Employees | Benefits of Employee Engagement | Reasons for Employee Engagement | Engagement and Retention | Trends

General Statistics on Employee Engagement

• The majority of the U.S. workforce is not engaged at work.

  Just 32% of employees across the nation are engaged at work, according to work done by Gallup. The early 2022 survey found that 68% of Americans were not engaged at work, and 17% of the workforce was actively disengaged on the job.



• 36% of the U.S. workforce was engaged at work in 2020.

  Between April 27 and May 17, 2020, employee engagement reached a record high—with 38% of working Americans reporting being engaged on the job—since Gallup began tracking engagement levels in 2020.

  However, that number fell to a record low, reaching 31% just one month later. Experts point to the COVID-19 pandemic, the killing of George Floyd, and high unemployment levels as reasons behind the sudden decrease in engagement.

  Taking Gallup’s yearly employee engagement statistics into consideration, the yearly average employee engagement rate sat at 36% in 2020.

• 32% of employees are engaged at work in 2022.

  Gallup reports that from 2020 to 2021, employee engagement rates fell for the first time in a decade, and the decline continued into 2022.

Employee Engagement Statistics by the Cost of Disengaged Employees

• On average, disengaged employees cost companies $3,400 for every $10,000 they make each year.

  Disengaged employees have an 18% lower productivity rate and a 15% lower profitability rate than their engaged peers. In addition, employees who are not engaged on the job are 37% more likely to take time off work.

  When broken down, a disengaged employee costs a company, on average, 34% of their annual salary every year. That means a company loses $3,400 for every $10,000 a disengaged employee earns.



• For a small business with 250 employees, low employee engagement can cost more than $3 million per year.

  A company with 250 employees, where the average salary is $47,000, loses a whopping $3,164,040 each year due to disengaged employees.

• Complacent leadership is the top reason employees report feeling disengaged at work.

  58% of American workers say that their company’s leadership is either not proactive or takes no action regarding culture. Additionally, only 9% of workers say that their leadership is committed to culture initiatives.

• Employee disengagement increases turnover rates by almost 50%.

  An Achievers poll surveyed 2,000 employed Adults and found that 52% were looking for a new job. The same survey found that 46% of the respondents did not feel engaged or connected to their company, and 42% said that company culture was lacking. Only 21% of the respondents reported feeling engaged at work.

Employee Engagement Statistics by Benefits

• Engaged employees are more 22% productive at work than employees who are not engaged.

  Organizations with happy and engaged employees are 22% more productive than organizations with lower employee engagement and satisfaction rates, according to research from HBR.

• Engaged employees are 21% more profitable than disengaged employees.

  Engaged professionals are 21% more profitable than disengaged peers. In addition, the top 20% of engaged employees have a 41% reduction in absenteeism and a 59% reduction in employee turnover.

Employee Engagement Statistics: Reasons for Engagement at Work

• Career advancement opportunities are an important aspect of job satisfaction and engagement, especially for younger workers.

  47% of U.S. employees rate career advancement opportunities as very important to their job satisfaction and job engagement rates. Career advancement opportunities are perceived as very important to 89% of millennials.

  On the contrary, just 73% of baby boomers report career advancement opportunities as an important aspect of their job.

• Employees who feel heard on the job are more likely to have high engagement levels at work.

  Employees who feel heard on the job are approximately 4.6 times more likely to be engaged and thus have good performance and profitability.

  Research shows that companies that push for equality and inclusiveness and have positive gender and ethnic diversity typically have more engaged employees than companies that do not push for those workplace initiatives.

• 89% of employees working for companies with wellness programs are engaged and happy with their job.

  The vast majority of U.S. employees who work for a company with wellness programs and support employee well-being think their company is a good place to work and would recommend it to a friend. On the contrary, only 17% of employees would recommend a company not committed to employee wellness and well-being.

• According to HR experts, constant feedback is essential to employee engagement.

  89% of human resources professionals agree that constant peer feedback, employee check-ins, and on-the-job recognition are vital to positive employee engagement.

  Employment leaders suggest that employee engagement largely depends on a company’s overall business strategy and culture.

Employee Engagement Statistics and Retention

• Most U.S. workers would take a pay cut to work at their ideal job.

  Roughly 60% of employees across the nation would take less money to work at a job they loved. In addition, that group of employees would also be willing to give up 50% of their current pay to get the job of their dreams.

  Meanwhile, 35% of the U.S. workforce reported that they would be willing to take a pay cut of $1,710 to as much as $2,820 to improve their work-life balance while at a job that was not necessarily their ideal job.

• If a good opportunity presented itself, roughly half of American workers would leave their current job.

  Recent studies show that nearly 50% of Americans want to make a career change. The majority of U.S. workers pointed to problems with their employers as the root cause of their desire to leave their current position.

  Many professionals stated that their supervisors did not show enough empathy or understanding for them and other employees.

  The desire for flexibility at work—including options to work remotely or from home—was another leading cause of employee turnover and the increased prevalence of employees wanting to leave their current positions.

• Employees are almost 90% less likely to leave a job if they are highly engaged at work.

  Employees are approximately 87% less likely to leave a job if they are engaged and motivated in the workplace. Although employee engagement is a vital component of employee retention, most American workers continue to report feeling disengaged at work.

  The cost of replacing an employee can be between 30% and 200% of the previous employee’s total annual salary.

  As such, experts suggest that it is in the best interest of an organization or business to actively pursue the advancement of employee engagement to create a better work environment, save money and improve employee retention and productivity.

• There is one actively disengaged employee for every 2.2 engaged employees in the United States.

  This ratio of engaged to actively disengaged employees is the lowest recorded rate in the United States since 2016. The ratio was determined through a random sample of more than 2,600 employees who were polled between June 1, 2020, and June 14, 2020.

Employee Engagement Statistics: Trends

• The COVID-19 pandemic prompted more businesses to focus on making positive changes to the employee experience to improve job engagement.

  According to a Society for Human Resource Management report, due to the global pandemic, more organizations are focusing on career flexibility and employee happiness to boost engagement.

  As such, a record 95% of IT executives across the nation reported that they began listening to employee feedback more intently since the onset of the pandemic.

  In addition, more than 65% of polled executives said that they planned to keep at least 25% of their workforce on a remote schedule after the pandemic ends, a sentiment that speaks to the desired career flexibility that more engaged employees seek.

• In 2020, employee engagement dropped to the lowest recorded level since 2000.

  Between May 17, 2020, and June 1, 2020, employee engagement dropped from 38% to just 31%. Experts point to the coronavirus pandemic, record-high unemployment levels across the nation, as well as protests and riots surrounding the killing of George Floyd in late May.

Employee Engagement Statistics FAQ

1. What percentage of employees are engaged at work?

   32% of employees in the United States are engaged at work. However, the 2022 Gallup survey found that 68% of Americans were not engaged at work, and 17% of the workforce was actively disengaged on the job.

2. How much more productive are engaged employees?

   Engaged employees are significantly more productive than employees who are not engaged on the job site. According to Harvard Business Review, organizations with happy and engaged employees are 22% more productive than organizations with lower employee engagement and satisfaction rates.

3. What makes an employee feel engaged at work?

   Employee engagement is closely tied to fulfillment and happiness on the job. Polls show that employees who utilize their skills and strengths, trust their company’s leaders and managers, thrive on company success, are interested in their job, and seek personal and professional growth opportunities are more likely to be engaged at work.

4. Do engaged employees stay at their jobs longer?

   Yes, engaged employees stay at their jobs longer than their unengaged peers. Gallup data shows that engaged and motivated employees are at least 44% more likely to stay at their current place of work than unengaged and unmotivated employees.

5. What does an it mean to be an engaged employee compared to an actively disengaged employee?

   The three categories of employee engagement can be broken down as follows:

   • Engaged employee. An engaged employee puts time, energy, and passion into their work. They feel a sense of enthusiasm about getting things done and genuinely enjoy the challenges and accomplishments of their day-to-day lives at work.

   • Disengaged employee. A disengaged employee will put time into their work, but not a whole lot of passion or enthusiasm. These are employees who basically do what they need to get by and put forth no more effort than is required as a minimum.

     Disengaged employees are also not very attached to their company and can easily be convinced to leave for another offer.

   • Actively disengaged employees. Actively disengaged employees have work experiences that are almost entirely negative. They will not only drag their feet to get the minimum of work done, but may also make their colleagues more miserable as well.

Conclusion

Employee engagement is crucial to business success. Although, as a whole, the U.S. workforce struggles with staying engaged on the job, more and more businesses are prioritizing employee needs to improve employee engagement and, in doing so, boost productivity and profitability.

Today, research tells us that a whopping 54% of the American workforce is not engaged on the job. Such disengagement has led to gaps in business success, costing companies thousands of dollars in lost profits.

While improvements and solutions are still forthcoming, the overwhelming majority of human resources professionals—89%, in fact—are now committed to providing consistent feedback in a direct effort to increase employee engagement.

References

1. Gallup. “Historic Drop In Employee Engagement Follows Record Rise.” Accessed on October 14, 2021.

2. Forbes. “How Much Are Your Disengaged Employees Costing You?” Accessed on October 14, 2021.

3. The Society For Human Resource Management. “Turnover ‘Tsunami’ Expected Once Pandemic Ends.” Accessed on October 14, 2021.

4. Forbes. “10 Timely Statistics About The Connection Between Employee Engagement And Wellness.” Accessed on October 14, 2021.

5. The Society For Human Resource Management. “Employee Job Satisfaction And Engagement: Revitalizing A Changing Workforce.” Accessed on October 14, 2021.

6. Harvard Business Review. “Employee Engagement Does More Than Boost Productivity.” Accessed on October 14, 2021.

7. Recruiter. “Should You Take A Pay Cut For Your Dream Job?” Accessed on October 17, 2021.

8. CNBC. “Here’s How Much Money Workers Would Give Up For Better Work-Life Balance.” Accessed on October 17, 2021.

9. CNBC. “The Great Reimagination Of Work: Why 50% Of Workers Want To Make A Career Change.” Accessed on October 17, 2021.

10. Culture Amp. “Increase Employee Engagement And Retention.” Accessed on October 17, 2021.

11. The Society For Human Resource Management. “Employee Engagement Tech Key To Post-Pandemic Success.” Accessed on October 17, 2021.

12. Gallup. “U.S. Employee Engagement Slump Continues.” Accessed on February 14, 2023.

13. Gallup. “State of the Global Workplace: 2022 Report.” Accessed on February 16, 2023.

Author

Elsie Boskamp

Elsie is an experienced writer, reporter, and content creator. As a leader in her field, Elsie is best known for her work as a Reporter for The Southampton Press, but she can also be credited with contributions to Long Island Pulse Magazine and Hamptons Online. She holds a Bachelor of Arts degree in journalism from Stony Brook University and currently resides in Franklin, Tennessee.