As of their 2023 'State of the Workplace' report, Gallup claim that only 23% of employees around the world are currently engaged at work. This means less than a quarter of workers found their work meaningful and felt connected to their team, manager and employer.
Why does employee engagement matter? Why should it be a focus for what you look to achieve when using Perform & Engage 365? Let's see what the stats say:
1. Impact on Productivity:
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- Engaged employees are 17% more productive than their disengaged counterparts. (Source: Gallup, "State of the Global Workplace" report)
- Companies with highly engaged workforces outperform their peers by 147% in earnings per share. (Source: Gallup, "State of the American Workplace" report)
2. Customer Satisfaction:
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- Engaged employees can lead to customer satisfaction levels that are 10% higher. (Source: Temkin Group, "Employee Engagement Benchmark Study")
- A 5% increase in employee engagement can result in a 3% increase in customer satisfaction. (Source: Harvard Business Review
3. Employee Retention:
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- Highly engaged organisations have an employee turnover rate 40% lower than companies with low engagement. (Source: Workplace Research Foundation)
- Replacing an employee can cost anywhere from 16% to 213% of their annual salary, depending on the role and seniority. Engaging and retaining employees can significantly reduce these costs. (Source: Society for Human Resource Management)
4. Innovation and Creativity:
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- Engaged employees are more likely to contribute innovative ideas, with 59% reporting that they have input into decisions that affect their work. (Source: Gallup, "State of the Global Workplace" report)
- Companies with high employee engagement are 2.5 times more likely to outperform their competitors in terms of revenue growth. (Source: Harvard Business Review)
5. Safety and Well-being:
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- Highly engaged organisations experience 70% fewer safety incidents compared to companies with low engagement levels. (Source: Gallup, "State of the Global Workplace" report)
- Engaged employees are more likely to report higher levels of overall well-being and job satisfaction, leading to better mental and physical health outcomes. (Source: Gallup, "Wellbeing: The Five Essential Elements" book)
6. Profitability:
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- Companies with a highly engaged workforce are 21% more profitable than those with low engagement levels. (Source: Gallup, "State of the Global Workplace" report)
- Employee engagement is a strong predictor of financial performance, and organisations in the top quartile of engagement are 22% more profitable than those in the bottom quartile. (Source: Gallup, "State of the Global Workplace" report)
These statistics emphasise the significant impact of employee engagement on various aspects of organisational performance. Engaged employees are more productive, satisfied, and innovative, which ultimately leads to improved customer satisfaction and profitability while reducing turnover and safety incidents. Investing in employee engagement can yield substantial benefits for any organisation.