Essential Employee Engagement Stats for 2023

Employee engagement directly impacts your bottom line, which is why many companies invest in employee engagement software.

In addition to the tools, you can use these employee engagement statistics to develop your engagement strategy and improve your employees' experiences.

But first, a quick definition so we're all on the same page.

What is employee engagement?

Engage For Success, a voluntary movement to promote employee engagement, defines it as follows:

"A workplace approach that creates the right conditions for all members of an organization to give their best every day, to be committed to their organization's goals and values, to be motivated to contribute to the organization's success, and to feel good doing so.

High employee engagement leads to:

• Better employee retention
• Easier recruitment
• Higher productivity
• Higher job satisfaction
• More innovation
• Reduced absenteeism.

No wonder companies are so concerned about employee disengagement!

Employee engagement statistics

Whether as part of a boardroom debate or as the topic of a podcast, there is a lot of talk about employee engagement and its benefits to your company. But what do the numbers say?

We found 15 employee engagement statistics we think every manager should know in 2024:

1.23% of employees worldwide are “actively engaged.”

In its 2023 State of the Global Workplace Report, Gallup concluded that 23% of employees worldwide are engaged at work - a record high.

But despite the upward trend, Gallup warns that there is still a lot of work to be done. The majority of employees (59%) “quietly quit” or do only the bare minimum.

However, other researchers paint a rosier picture. Kincentric, an employee engagement solutions provider, finds that 67% of employees worldwide are engaged.

2.Engagement levels in the US will decline by 2 percentage points by 2023

Gallup reports that since it began reporting on employee engagement, the highest percentage of engaged employees in the U.S. was 36% in 2020. It fell to 34% in 2021, 33% in 2022 and the trend continues in 2023 with only 31% engaged employees.

Gallup attributes declining levels of engagement among U.S. workers to fewer development opportunities, limited clarity of expectations and feelings of unvalued at work.

3.South Asia has the highest level of engagement

According to the Gallup report, engagement is highest in South Asia at 33%.

4.Europe is at the bottom

Of all regions, Europe has the lowest percentage of engaged employees at 13%. The silver lining is that only 15% are actively disengaged, with most in the middle category, do just as much as is required.

5.Employee engagement by region

In the rest of the world, the USA, Canada and Latin America lead with 31%, followed by post-Soviet Eurasia (27%), Southeast Asia (26%), Australia and New Zealand (23%), sub-Saharan Africa (20%), East Asia (17%), the Middle East and North Africa (15%) and finally Europe (10%).

6.Employee engagement drives results

Companies with engaged employees achieve better results than those that don't. Gallup compared business units with high engagement to those without engagement and found the following results. Its employee engagement survey shows that engaged employees:

• Increase productivity by 14%
• Increase customer ratings by 10%
• Increase sales by 18%
• Increase profitability by 23%
• Increase in organizational involvement by 13%

7.The cost of disengaged employees

The Gallup report estimates that actively disengaged and disengaged employees cost businesses $8.8 trillion in lost productivity worldwide. This figure represents 9% of global GDP.

8.Engaged business units are more profitable

Another Gallup study concluded that “the behavior of highly engaged business units leads to 21% higher profitability.” The same study says that employees who are engaged are less likely to leave the company.

It states that “highly engaged business units achieve 59% less turnover” in high-turnover companies and “24% less turnover” in low-turnover companies.

9.Consistency leads to higher engagement

According to research from Kincentric, 91% of employees who have had a consistent employee experience report higher levels of engagement.

10.Measure employee engagement the right way

Leaders play an important role in employee engagement and growth. Therefore, it is important that they have motivating communication with their team members.

Gallup surveyed over 2.7 million employees worldwide to develop the 12 questions to help companies measure and drive employee engagement. This survey aims to open a dialogue between managers and their teams.

11.Regular employee feedback is the key to increased employee engagement

69% of employees believe they would be more motivated and engaged at work if they felt their efforts were recognized.

Likewise, over 85% of employees believe that they work more motivated when management regularly informs them about company news.

12.Companies now focus more on productivity and engagement than performance

Given the importance of employee engagement, it's no surprise that nearly 48% of companies have shifted to focusing on productivity and engagement rather than just development, according to the Performance Management Report.

13.Learning and development opportunities lead to higher engagement

A study by Udemy found that 80% of respondents believe learning new skills would increase their engagement at work.

14.There is a balance between commitment and burnout

A study by the Yale Center for Emotional Intelligence found that 1 in 5 workers are highly engaged yet at risk of burnout.

While burnout is often viewed as a cause of disengagement, it stands to reason that even highly engaged employees can burn out as a result of overwork.

15.Different engagement between on-site employees and those in hybrid and remote companies

According to Gallup, employees who work on-site are less engaged than hybrid and remote workers.

However, there is a connection between remote work and a lower sense of connection to a company's mission and purpose.

Could it be that remote workers are becoming less engaged and more “gig-like”?

How to promote employee engagement

What factors should companies that want to increase employee engagement focus on?

Develop good leaders

Managers play an important role in deciding whether or not employees are committed to the company they work for.

To play a positive role, leaders need to provide clear goals and direction, provide regular feedback with a focus on coaching, and recognize employees (perhaps using an employee recognition platform).

Provide learning and development opportunities

The companies that have high levels of engagement have shown us that employees who feel like they are growing and gaining new skills are more likely to be engaged in their workplace.

That's why it's worth taking the time to develop an appropriate learning and development strategy and investing in tools such as learning management systems.

Keep an eye on burnout

As we’ve seen, even highly engaged employees are at risk of burnout. Here you can find out how you can recognize, prevent and treat burnout in the workplace.

Do you really want to increase engagement? Ask your employees

If you look at Gallup's engagement scores, they're not great. But it's really just a small sample.

When it comes to measuring engagement in your company, the best way is to ask your employees!

This can be done through surveys using employee survey tools, through interviews or simply through regular, informal conversations.

Here are 8 effective ways to get employee feedback. Once you've taken the time to gather feedback, keep your employees updated on any changes you make (or why you don't make them).

Failing to address issues that arise from your investigations is a great way to discourage employees.

Key findings

• Nearly 6/10 of employees quit quietly, but they are easier to onboard.
• A consistent employee experience has been shown to increase engagement.
• Good managers and learning and development opportunities are important factors for employee engagement.

As a next step, check out our articles on increasing employee engagement and these employee engagement ideas for remote teams. You can also find further ideas in our selection of the best podcasts on the topic of employee engagement.

It's also helpful to keep an eye on notable HR statistics, trends and data that are influencing policy and causing leaders to rethink the future of their teams.

Employee engagement drives success. Invest in leadership, learning, and well-being. Explore IceHrm for tailored HR solutions.