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employee engagement

6 Mind-Blowing Stats on Employee Engagement

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

A recent Achievers report 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.

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What do you think about these 6 mind-blowing employee engagement stats? Share your comments below.

 

Shocking HR Stats

13 Scary Employee Engagement and Recognition Stats That Will Spook You This Halloween

Are you haunted by worries that your best people might quit right before a key deadline? Does lack of team alignment keep you awake at night? Don’t let the tentacles of leadership doubt creep into your brain during hours when you should be rejuvenating. Read through these thirteen hair-raising employee engagement and recognition statistics below and banish any lurking shadows from your company culture.

1. Workers Are Still Rewarded Just for Existing

In a scary throwback to the mid-twentieth century, 87 percent of employee recognition programs center on how long the person has been at the company. While it’s true that minimizing turnover is helpful, nobody comes to work every day because of recognition they’ll be awarded in some future year.

2. Frequent Recognition Gets Overlooked

We know, your life as a manager gets hectic, and you may assume employees can read your mind when you don’t express the appreciation you feel. Pro Tip: They can’t. A Gallup survey finds that only 1 in 3 workers strongly agree that they have been praised or recognized within the past week for doing good work.

3. Most Workers Are Not Engaged

According to Gallup’s 2017 State of the American Workforce report, 51 percent of employees state that they are not engaged in their jobs, which means they’re likely keeping an eye open for a new job. That’s a scary thought, isn’t it? And don’t even think about the distracted workers doing jobs that have a direct bearing on other people’s health and safety.

4. Leaders Are Falling Down on the Job

Gallup provides some truly alarming figures related to the failure of leadership in today’s companies: Only 15 percent of employees “strongly agree” that their management gives them confidence about the future of the company, and only 13 percent state that the company’s leaders communicate effectively throughout the organization.

5. Actively Disengaged Workers: A Problem Waiting to Happen

The number of “actively disengaged” workers, at 24 percent, is nearly double the 13 percent of workers who say they are actively engaged. This can be expensive to your business, as Gallup points out that each instance of employee turnover costs your company an average of 1.5 times the employees’ salary.

6. Recognize Them or Lose Them

Research published in Human Resources Today finds that “the number one reason why people leave jobs is limited recognition and praise.” This is a simple statistic, easy to remember, that will help you keep your talented workers on board for the longer term.

7. Criticism Impairs Thinking

You may think constructive criticism will elicit star performances, but neuroscientists disagree. In fact, criticism activates higher levels of the hormone cortisol, which researchers say “shuts down the thinking center of our brain.” Praise, on the other hand, stimulates the basal ganglia to release pleasure hormones dopamine and oxytocin, which improve performance and attention levels.

8. Lack of Recognition Interferes with Performance

Do employees who aren’t praised work harder, in hopes of eventually being appreciated? Harvard Business Review says “No.” Their research points out that 40 percent of American workers say they would put more effort into their jobs if their employer recognized them more often.

9. Don’t Be Part of This Statistic

The Harvard Business Review study cited above also found that the average employee in their survey reported that it had been 50 days since they last felt recognized for anything they did at work. What number would your average staff person mention, if a surveyor were to ask this question?

10. Millennials Can Slip Away

A recent Deloitte survey found that 2 out of every 3 millennials expect to leave their current job by 2020. One major reason for this restlessness is that this generation feels their skills are not recognized. Only 28 percent of respondents stated that their organization is currently making full use of their skills. To keep your younger workers engaged, you need to recognize their efforts by offering development opportunities.

11. Millennial Need for Flexibility Is Overlooked

Chances are good that the millennials working for you want more flexibility. Eighty-eight percent of younger workers want more schedule flexing authority, while 75 percent want the opportunity to work for home. Meanwhile, only 43 percent of these workers are allowed to work from other locations… so it’s a good bet that some of your staff are surfing the web looking for more adaptable jobs

12. It’s Up to You

Management accounts for 70 percent of the variance in engagement scores. That’s both good and bad news. It means you have a huge influence when it comes to upping your employee engagement scores, but it also means that no other techniques for increasing engagement will be successful if you ignore your role in the solution.

13. Don’t Be Overconfident

You’ve just read a dozen statistics indicating just how big the room for improvement is. Here’s one last warning to take with you: 89 percent of senior managers feel that their company is actually very good at recognizing their workers. This means they probably won’t change. Don’t be part of that overconfident group.

The figures above come from a range of sources, but they all deliver one single message: Rewarding and recognizing your employees is a no-brainer. You work hard on all kinds of complex tasks in order to bring success and sustainability to your company. Don’t overlook the most obvious — and simple — building block of workforce loyalty: prompt, varied employee appreciation.

For more insight on the importance of recognition in the workplace, check out Achievers’ eBook, Recognition Culture: The MVP of Employee Experience.

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Positive Work Culture

The Secret Ingredients of an Amazing Company Culture

If you were asked about your top priorities as a manager, how would you answer? Increasing productivity would probably be first on your list, along with steady company growth, low employee turnover, seamless teamwork, and high employee engagement — after all, most businesses share similar goals.

However, you might not have considered developing an excellent company culture among your top-tier priorities, even though it is the foundation for every one of your key goals. When focusing on creating an amazing company culture, you will discover that other elements of business success fall into place organically. Let’s unpack that concept a bit and see why.

What Is Company Culture?

The first step toward improving your company’s culture is to have a clear handle on what the term means. One of the most accurate definitions is offered by business change strategist John Kotter. He defines company culture as “group norms of behavior and the underlying shared values that help keep those norms in place.” The key words in this definition are “shared values.” Employee alignment with your company’s mission and values is a critical component of positive company culture. A sure indicator of poor company culture is a workforce, total or partial, that has no personal interest or investment in the overall mission of their organization.

Why Company Culture Matters

A worldwide survey of 20,000 workers, conducted by Harvard researchers, found unequivocally that “culture drives performance,” but only 31 percent of employees report they are engaged with their work. Furthermore, the average employee would only give his or her company a grade of “C” if recommending it to a friend, according to Glassdoor statistics. A Duke University survey of 1400 CEOs and CFOs found that only 15 percent said their company culture is where it needs to be, while 92 percent said improving company culture would improve the overall value of the business.

Other research published in Harvard Business Review finds that disengaged workers cause 60 percent more errors and defects in work performance, while those under stress from negative cultures can increase a company’s health care expenditures by an average of 50 percent. We could go on with the dire statistics, but we’re certain you get the idea. How do you do the right thing for your employees as well as your company?

How to Create a Positive Company Culture

An interesting roadmap for creating a positive company culture can be found in the science of self-determination theory. Researchers writing in Harvard Business Review have identified three universal human needs that are central to fostering employee motivation. These three needs are autonomy, competence and relatedness. Let’s look at each of the three in turn:

Autonomy

To build your employees’ happiness through autonomy, make sure the goals and timelines you ask them to meet are developed in a collaborative manner. Workers need to feel that they have some control over their schedules and approach to tasks, rather than having every aspect of their workday micromanaged. HR professionals know that flexible work hours are at the top of most candidates’ lists of desirable benefits and perks.

Another aspect of leadership that contributes to a positive work culture is the avoidance of pressure and stress. The aforementioned HBR report states that “Sustained peak performance is a result of people acting because they choose to—not because they feel they have to.”

Competence

One of the most powerful employee incentives you can offer is the opportunity for training and development. Showing that you care about the evolution of your workers’ careers is a powerful expression of employee appreciation. This development may take some careful guarding of educational funds in your human resources budget, but the resulting increase in employee well-being will be worth your investment.

In addition to working with your team to set performance goals, you can nurture employee success by setting learning goals. Human beings derive a deep satisfaction from increased skills and competence, independent of every other type of employee reward.

Relatedness

This term describes the need inherent in most humans to feel connected to a larger team effort, and to be recognized and appreciated by other people. Employee recognition best practices should be built around this fundamental element of human psychology, providing opportunities for both colleagues and supervisors to offer recognition and rewards. While your team members don’t exert effort for the sole purpose of receiving rewards, they will thrive in the climate of solidarity and unity that those rewards represent.

Another crucial aspect of relatedness pertains to alignment with company values. The HBR analysis points out that employees need to connect their tasks with a noble purpose, and to feel that their own personal values are expressed in the way they spend their work days.

The CEOs interviewed by Duke University researchers were unequivocal in their statements that company culture drives “profitability, acquisition decisions, and even whether employees behave ethically.”

Building an amazing company culture should be at the center of your organizational health, and it begins with the three psychological elements central to employee engagement. To learn more about fostering an amazing company culture, download our e-book: “All for One and One for All: Uniting a Global Workforce with Company Culture.”

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