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7 Mind Blowing Stats About Employee Engagement You Need to Know

By December 14, 2020February 8th, 2021No Comments

7 Mind Blowing Stats About Employee Engagement You Need to Know

Whether you know it or not, employee engagement is one of the single most important aspects of running a successful business. Your employees make your business profitable, and without engaged employees, you can’t have a profitable business. So, what are some of the current truths about employee engagement that are important for you to know? In this blog, we’ll present seven mind blowing statistics that will help provide a clearer picture of employee engagement and where it stands. Hopefully, you can use this information in your business to try to increase engagement.

Why Employee Engagement Matters

First and foremost, it’s important to understand that employee engagement is crucial to the success of your business. Engagement is on the rise in the United States. In fact, in 2018, 35% of workers surveyed in a poll reported that they were engaged (Gallup), a higher proportion than in previous years. This increase in engagement is great for the overall workforce and businesses. However, if your employees aren’t engaged, you might be at risk of losing great workers to other companies that provide more engaging opportunities. Moreover, only 35% of workers were engaged. While this is an increase from previous years, it’s still a minority of the workforce.

Employee engagement increases the satisfaction and productivity of your workforce while decreasing turnover. Hiring and training new employees is pricey and risky. If you can engage your employees and retain the best ones, then you won’t have to spend on hiring. In fact, disengagement as a whole is costly — according to Forbes, employee disengagement costs the U.S. more than $550 billion per year due to lost productivity. Finally, your employees want to be engaged. Research has found that Millennials and Gen Z specifically actively seek engagement and purpose in their careers and are willing to leave a company if they cannot find them.  Now, let’s get into the statistics.

More on how engagement affects your business. Source: Gallup

#1: “Managers account for at least 70% of the variance in employee engagement scores.”

Source: Gallup

Managers matter. We all know that the way an employee is treated by their boss is important, but did you realize that it was this important for engagement? 70% or more of the variance in employee engagement scores are dependent on managers. That means that it’s in your best interest to properly train and supervise your managers to make sure that their teams are engaged. As a business owner, you can’t be responsible for each of your employees, especially if you have a large company. But you can and should make sure that your leadership is strong and properly engaging your employees.

#2: Businesses with low employee engagement scores generate revenue growth at a rate 2.5 times lower than companies with higher scores.

Source: Hay Group

As you can see, high employee engagement scores and increased revenue growth are highly correlated. If anything will convince you to invest in employee engagement, it’ll be this. Your employees’ engagement directly transfers to a more profitable company and faster growth.

#3: 51% of Americans are actively looking for a new job or keeping an eye on job openings.

Source: Gallup

This statistic illustrates that the majority of Americans are either looking for a new job or open to finding one. That means that you are already at risk of losing your top talent, whether or not you have high employee engagement scores. So, it’s in your best interest to do whatever you can to prevent your employees from wanting to leave. Of course, turnover is natural and will happen to a certain extent. But if you have low engagement, you’re positioning yourself to fail, as there is already a large number of employees who are willing to leave.

#4: “47% of employees actively looking for a job say that they would prefer working for a company with an established and thriving culture.

Source: Techjury

Engagement comes in different forms, ranging from management strategies to professional development. One way that you can engage your employees is by building a great company culture. According to Techjury, when people are switching jobs, culture is something that they’re looking for. So, if you’re thinking of ways to improve your employee engagement, consider making some changes to your company culture. Not only will it help you engage your current employees, but it will also help you attract top talent in the future.

#5: “51% of employees say they would change jobs for one that offers them flexible work time.”

Source: Gallup

This statistic is important because job satisfaction means more than just giving your employees meaningful work. For your teams to be truly engaged, they need to be satisfied with their job in a holistic way. This includes having meaningful and challenging work, a good company culture, and the perks, benefits, and flexibility that they desire. Especially now with remote work increasing, it’s more and more common for businesses to offer flexible work arrangements. Whether that be work from home, flexible hours, or a mix, it’s important that you know a lack of flexibility could cause turnover in your business.

#6: Disengaged employees are much more likely to leave.

Source: Gallup

Three statistics in one for our sixth point, which is that actively disengaged employees are more likely to leave than engaged employees. As you can see, there are various reasons that inspire employees to change jobs. What’s important is that in every case, employees who reported that they were actively disengaged were much more likely to leave than employees who reported that they were engaged.

#7: “3 in 10 U.S. employees strongly agree they have the materials and equipment they need to do their work right.”

Source: Gallup

We’ll conclude with a statistic that is quite shocking. Only 30% of employees strongly feel that they are equipped to do their work properly. How can you expect your employees to be engaged if you are not providing them with the tools that they need to succeed? Not only will a lack of preparedness decrease employee engagement, but it will also directly hurt your business. If your employees cannot do their work correctly, their productivity and effectiveness will decrease, and your company’s profits and profitability will follow.

As you can see, engaged employees are crucial for your company to succeed. Properly engaging your employees is challenging, however, and it requires a lot of time, energy, and expertise. Wants and needs are constantly changing, and to have engaged teams, you have to have a good idea of what the people on your team want and need to succeed and be happy. So, invest time into employee engagement. Whether that means through hiring a third-party to assess and improve your engagement, spending time training managers, or anything in between, make it a priority, as it will significantly help you and your business if your employee engagement is strong.

Good luck! 

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