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Top 7 Employee Engagement Statistics for 2023

December 27, 2022

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Employee engagement statistics aren't just interesting numbers on a page-they tell a story. They explain how your employees and potential hires think, shining light on the modern-day workforce's wants and needs.

Use this data correctly, and you can bypass the learning curve and skip straight to delivering the culture, perks, benefits, and experiences your employees silently (or not so silently) demand.


7 Employee Engagement Statistics You Need to Know

You can find dozens of employee engagement statistics floating around the internet, and we zeroed in on our favourites. Plus, all our statistics come cited straight from Gallup research-so you can trust they're accurate.


1. 80% of Global Employees Aren't Engaged at Work (Gallup)

Engagement is one of the most enlightening statistics about the workforce. Engaged employees tend to be more productive, stick with their jobs longer, and report overall improved happiness. And the opposite is true for unengaged employees.

The unfortunate reality is that most global employees aren't engaged at work (hence the Great Resignation), and while this number seems to be trending in the right direction, it still indicates there's a lot of work left to do. Employee engagement isn't something you can take for granted-it takes hard work to achieve and maintain, but it's worth the investment.


2. 55% of Unengaged Workers Are Looking for New Job Openings (Gallup)

While record-low unemployment is good for employees, it makes it extra hard for businesses to find and retain top talent. More than half of unengaged workers aren't just disgruntled-they're actively looking for new jobs or watching for openings.

It's cheaper, more productive, and better for morale and camaraderie to retain talent than to replace it, which makes it all the more important to cut attrition. Improving your retention rates starts with boosting engagement. Get your employees engaged, and they'll be less likely to look for opportunities elsewhere.


3. Highly Engaged Employees Result in a 23% Improvement in Profitability (Gallup)

Engagement isn't just good for morale-it's good for your bottom line. Engaged employees tend to have higher profitability across nationalities, industries, company sizes, and economic conditions.

Through the good times and the bad, your engaged employees will produce more enhanced business outcomes than your unengaged employees (regardless of how talented they are). Their contribution to profitability also includes fewer absences, lower turnover, and overall improved productivity.


4. Engaged Businesses Have 10% Higher Customer Ratings (Gallup)

Customers know the difference between unengaged and engaged employees. They're the ones who're likely interacting face-to-face (or email to email) with these employees on a daily basis-likely more so than your managers.

Engaged employees tend to produce better customer experiences, and that's probably due to showing up to work with a greater commitment to the job. This leads to better quality work and an increased focus on each individual customer-and customers notice.

This doesn't just show up on customer feedback, though. It's also demonstrated by your employee's contribution to revenue. Engaged employees have 18% higher sales, which is likely due to their greater priority on quality and customers.


5. Highly Engaged Businesses See an 81% Difference in Absenteeism (Gallup)

Engaged employees want to show up for work. They tend to like their jobs, the people they work with, and the company's mission. Sure, it's work-but it's work that they care about, and they show up when it counts.

Unengaged employees tend to be a bit more flakey. When they don't care about a job or the organisation they work for, they're more likely to miss work-and that hurts business. Unscheduled absenteeism costs businesses roughly $3,600 per year per hourly worker and $26,000 for each salaried employee. And that cost doesn't take into account the damage to brand reputation or team morale when a valuable member of the team doesn't show up.


6. Low Engaged Teams Endure Turnover Rates 18% to 43% Higher Than Engaged Teams (Gallup)

We mentioned that unengaged employees were looking for new jobs-and this stat confirms they're finding them. Low-engaged teams experience higher turnover rates than engaged teams, indicating that they believe they'll find something better elsewhere.

This stat aligns with similar employee engagement statistics that reveal 49% of employees would even quit for a lower-paying job if they knew it had better organisational culture. Employees want to be engaged at work, and the Great Resignation demonstrates they're willing to risk employment to find it.

Pay isn't enough anymore (although it's still important). Employees want to find meaningful work where they feel recognised, appreciated, and valued.


7. Employees Are 3.6x More Likely to Be Motivated by Daily Feedback Vs. Annual Feedback (Gallup)

A big portion of engagement comes from feedback and recognition. Employees want to feel like they're part of the company's bigger mission and they're making a difference, and regular feedback gives them that validation. Annual feedback can feel overwhelming and intimidating, while daily (or even weekly) feedback feels more bite-sized and actionable.

Fast feedback should be your organisation's goal. When management notices a problem (or, better yet, a success), they should act quickly. It's better for business, and research shows it's better for employee motivation, too. And when your employees are motivated, they're more likely to be engaged and putting out their best work.


Boost Employee Engagement With Terryberry

Feedback and recognition play a critical role in helping your employees become more engaged in the workplace. It helps them feel like they're part of a bigger cause rather than being an unnoticed cog in a machine.

Let us help normalise and empower recognition at your company. Terryberry provides a range of products and services to boost employee engagement and cultivate a healthy culture, including social recognition programs, performance and incentive rewards, and a feedback and communication platform.

See for yourself. Schedule a demo with a member of our team to get a hands-on walkthrough of the platform and tailored recommendations for you and your employees.