Create a culture that means business™
If you’ve been casual about the topic of employee engagement or figured that your employees are probably doing fine (because you’d know if something wasn’t working, right?), it’s time to take a second look. Employee engagement can seem like a vague topic since it doesn’t show up as a line item on your end-of-quarter financials, but it actually has a significant impact on how nicely those numbers stack up. Here’s a handful of employee engagement stats we’ve gathered to capture your attention:
1. Over Half the Workforce is Actively Job-Hunting
Gallup published their State of the American Workforce report, which reflects the responses of over 195,000 American employees across every industry. This important study – the largest of its kind – found that 16 percent of American workers are actively disengaged while another 51 percent are “just there.” What’s more, 51 percent of those lackadaisical or disengaged workers are busily checking their inboxes and social media networks for better opportunities. And given today’s improved employment climate, the more talented among them are aware that they’re in high demand. 63 percent – almost two-thirds – of Gallup’s respondents expressed some confidence that they’d be able to find a job as good as or better than their current one.
2. 72 Percent Ranked Employee Recognition as Having the Greatest Impact on Engagement
The Business Case for Social Recognition Report recently revealed companies identified recognition as having the greatest impact on employee engagement. Furthermore, companies that invest in social recognition see an improvement in stock prices and NPS scores, as well as individual performance of employees. With 60% of companies planning to increase their investment in social recognition technology, don’t lose sight of the power behind employee recognition and its positive impact on employee engagement.
3. Businesses with Engaged Workers Have Double the Odds of Success
When Gallup researchers compared overall metrics of businesses in the top quartile of employee engagement with those unfortunate companies in the bottom quartile, the contrast was stark. The high-performing companies simply shone, with 28 percent less shrinkage, 41 percent lower absentee rates, 40 percent fewer quality defects and between 25 and 59 percent less turnover. When all these factors are merged into one unified picture, the result is a doubling of financial success for companies who know how to build a positive work culture.
4. Highly Engaged Businesses Are 70 Percent Safer
As Gallup examined the characteristics of the best-performing workplaces, its researchers noticed a big difference in safety statistics. Workplaces with the highest levels of employee engagement were much safer: They experienced 70 percent fewer employee safety incidents and (for healthcare providers) 58 percent fewer patient safety mishaps. The study concluded that these healthier environments result from the simple fact that engaged workers pay more attention to what’s happening around them. They’re not busy wishing they were somewhere else, checking their phones or nursing grudges. Instead, they’re watching what happens and communicating with co-workers about safety issues.
5. Disengaged Workers Have a 60 Percent Higher Rate of General Errors
In Achievers’ white paper, we learn a lot about the high cost of employee disengagement. Did you know disengaged workers have a 60% higher rate of general errors? And disengagement costs the U.S. economy $550 billion per year? It’s important to address any signs of disengagement before it becomes a larger issue. A great way to address disengagement right away is with an always-on, active listening interface that gathers feedback, asks questions, and gives updates, next actions, and ideas to both employees and managers to impact engagement right away.
6. Companies with Engaged Employees Have Five Times Higher Shareholder Returns
Research published in Business2Community shows the very material effect that your employee engagement has on that all-important bottom line. While you probably care about employee happiness for its own sake, you have to be able to present some clear figures and stats when you’re explaining the value of investing in HR technology to folks in the C-suite. They’ll be impressed to hear that shareholder returns measured over a five-year period were five times higher at companies whose workers reported being engaged. Also, it’s valuable to note that organizations with engaged employees outperform those with low employee engagement by 202%.
The key to keeping workers engaged isn’t a deep secret. Proven pathways exist to increasing your employees’ sense of personal well-being and dedication to their jobs. To learn more, access Achievers white paper: “2018 Employee Engagement Survey: HR Professionals Share Their Advice For a More Engaged Workforce.”