There’s a lot of buzz around employee engagement these days. It’s important that this increasingly hot-button issue reaches employers across all industries to help them recognize the need to prioritize employee engagement if they want to respond to rapidly evolving workforce expectations.
However, while there may be plenty of information about how you can ramp up employee engagement efforts at your organization, what’s spoken about less often is why. The bottom line is that employee engagement plays a significant role in everything from business productivity to employee retention, and it can help employers and Human Resources (HR) leaders address some of today’s most pressing workforce issues while lowering employment costs overall.
Here are five key employee engagement statistics to keep in mind as you make the case for and strengthen your organization’s employee engagement strategy.
Key stat #1: Disengaged workers cost American businesses $300 billion a year in lost productivity.
Businesses can lose astronomical amounts of money in wasted effort and inefficiency. In essence, there’s often a direct line between disengaged workers and lost operational costs. When employees aren’t invested in their work, efficiency can suffer as a result.
An engaged workforce tends to be more productive, which can save costs in the long run. Because when employees are invested in their day-to-day jobs, they are in a better place to come up with ideas about how to improve workflows, communication, and other team dynamics, as well as products and services. They’re also in a better position to collaborate well with each other which often helps everyone achieve goals more quickly and effectively. All of this translates to a more cost-effective workforce and organization overall.
Greater Long-Term Success
Key stat #2: Around a quarter of millennials (26%) rated employee satisfaction as the most important value in supporting a business’s long-term success.
If employees don’t see a path forward in the organization, they may look for another company that can provide it. Yet being able to promote employees from within is central to long-term business success, and it plays a key role in keeping employees engaged. Without professional development and promotion opportunities, employees may have fewer reasons to care or advance.
Businesses are more likely to thrive when employees have a chance to move up in the organization. Engaged employees are those who are supported in their career goals through critical skills training, development, and even mentoring opportunities. When you build and invest in today’s future leaders from within your own organization, you plant the seeds for long-term success.
Key stat #3: High-turnover organizations that improve employee engagement report 25% lower turnover and organizations with already-low turnover report 65% lower turnover.
Turnover is always a workforce challenge to varying degrees. But lately, the phenomenon of workers leaving their jobs in droves is creating a huge talent shortage. If employers can’t retain good employees, it’s now that much harder to fill open roles.
When employees are engaged, however, they’re less likely to quit. Even some of the simplest engagement practices — such as offering ways for employees to give feedback — can help them feel like they matter to their team and the organization. When employees feel valued, they are more likely to stay committed to your organization and its mission, thus improving retention. And with improved retention, your organization can avoid the financial costs associated with turnover such as recruiting, hiring, and training.
Increased Employee Motivation
Key stat #4: 72% of poll respondents said employee recognition is the most effective driver of employee engagement.
Disengaged employees tend to lack motivation which typically leads to underperformance. When employees feel like their efforts won’t be noticed, they can become even more disengaged and succumb to burnout and stress. Most employees want to be appreciated for what they do, and when the employee recognition element is missing, so is their overall commitment to the job.
On the other hand, recognizing employees for their efforts is foundational to employee engagement. When an employee receives well-deserved praise, it shows the rest of the workforce that managers and leaders are able to identify a job well done — and are willing to reward it too. Some of the best employee recognition methods to increase motivation include giving out awards, sharing employee wins via your organization’s communication channels, and giving regular shout-outs during team meetings.
Greater Clarity and Transparency
Key stat #5: 70% of poll respondents said an understanding of how their job contributes to the business strategy is another important driver of employee engagement.
Often, employees don’t know how their particular role fits into the larger business strategy. They may not realize the necessity of their responsibilities or the value of their output. They can feel like they work on an island, contributing no obvious or immediate impact to the business.
Engaged employees are the result of effective and strategic workforce planning. When you can define each position and know with certainty how many positions are needed at any time, you can more easily and transparently convey the importance of each position to the organization’s structure and overall business strategy. Employees know where, how, and why they fit in, and can better align their efforts to the strategy. And this greater clarity benefits HR and other business leaders as well.
Boost Employee Engagement with the Right Solution
One of the best ways to boost employee engagement is by investing in technology that can help you streamline workforce management. Software that provides a position-based architecture helps you define and segment essential role-based information, such as job title and responsibilities, to help each individual understand exactly how their role contributes to the overall success of the organization.
It can also help HR and other leaders easily and transparently collaborate on new hires vs. internal promotions and understand other key position data to keep everyone aligned to the organization’s objectives.
Persistent role-based data eliminates hours of busy work and frees your HR team to take a more active role in engaging with the organization on a more personal level. SyncHR is here to support you with efficient, accurate, and cost-effective workforce management solutions.
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1 Ologbo, A.C., and Sofian, S. Individual factors and work outcomes of employee engagement. Procedia Social and Behavioral Science. 2012.
2 The 2016 Deloitte Millennial Survey: Winning Over the Next Generation of Leaders.
3 Baldoni, John. “Employee Engagement Does More Than Boost Productivity.” Harvard Business Review. July 4, 2013.
4 The Impact of Employee Engagement on Performance. Harvard Business Review. September 2013.