Employee Engagement Statistics By Performance, Profits, Demographics, Software Market and Trends

Updated · Jan 16, 2025


Table of Contents
- Introduction
- Editor’s Choice
- General Employee Engagement Statistics
- Importance of Employee Recognition at Work
- Employee Engagement Performance Statistics
- Employee Engagement Strategies
- Employee Engagement Profit Statistics
- United States Employee Engagement Trends
- Employee Engagement Benefit Statistics
- Employee Engagement Statistics By Demographics
- Top Drivers of Employee Engagement Statistics
- Employee Engagement Statistics on Business Success
- Employee Engagement Software Market Statistics
- Costs of Employee Disengagement Statistics
- Employee Engagement in Delivering Customer Experience Statistics By Country
- Product Development Updates and Future Releases
- Conclusion
Introduction
Employee Engagement Statistics: Employee engagement is all about keeping global employees connected and motivated so that they feel comfortable at their jobs. This is the key factor for a company’s success, as engaged employees result in more productivity, stay longer, and contribute positively to the workplace. However, many businesses still struggle to understand what drives better engagement and how to improve it. Statistics show that many employees feel undervalued, lack proper training, or are unhappy with workplace culture, which leads to low engagement.
In addition, companies that prioritize employee well-being, provide recognition, and create a positive environment see higher engagement and better results. Understanding these statistics and recent trends helps businesses to make better decisions, improve employee satisfaction, and build stronger as well as successful teams.
Editor’s Choice
- Employee Engagement Statistics show that only 23% of employees feel engaged at work globally.
- Low employee engagement costs the global economy approximately USD 8.8 trillion annually.
- South Asia leads in employee engagement, with 33%, followed by the United States and Canada, with 31%.
- In contrast, Europe reports the lowest engagement levels at 13% in 2024.
- More than half of employees (59%) are ‘quiet quitting,’ meaning they are not engaged, while 18% are actively disengaged.
- Companies with highly engaged employees experience a 23% increase in profitability.
- Nearly two-thirds of millennials prefer a lower-paying job that ignites their passion over a higher-paying job they find dull.
- 84% of highly engaged employees received recognition for their efforts.
- Employee Engagement Statistics further depicts that engaged employees contribute to a 41% reduction in absenteeism.
- Nine out of ten engaged employees intend to stay with their organization, compared to only five out of ten of their disengaged counterparts.
- Managers account for 70% of the variance in team engagement.
General Employee Engagement Statistics
(Source: screencloud.com)
- 64% of employees feel more engaged at work due to their ability to focus on work they enjoy, followed by 60% (having a work-life balance).
- Other reasons for good engagement are the ability to work remotely (60%) and having a good manager (57%).
(Source: blogimage.vantagecircle.com)
- Over half of employees (59%) are disengaged, and 18% are actively showing disengagement.
- As of 2024, South Asia has the highest engagement at 33%, followed by the United States and Canada at 31%.
- Disengaged employees cause a massive USD 8.8 trillion productivity loss globally, showing their huge impact.
- Three out of four employees are thinking about quitting or leaving their current jobs.
- Employee Engagement Statistics show that recognizing employees for their work boosts engagement, as 81.9% of workers agreed in a survey.
- 68% of HR experts believe recognizing employees helps keep them from leaving, and 56% say it also makes hiring new people easier.
- Only 22% of companies understand the real reasons why their employees feel disconnected or unmotivated.
- Half of all employees would accept a pay cut if it meant doing a job they truly enjoy.
- About 41% of workers would take a lower salary to work for a company that genuinely values their well-being.
- As of 2024, four out of ten employees feel they don’t get enough training to do their jobs properly.
- Nearly half (47%) of people who want to change jobs say it’s because their current workplace has a poor or toxic culture.
- One-third of workers quit their jobs because they want to find new and exciting challenges elsewhere.
(Reference: res.cloudinary.com)
- By the end of 2024, employee engagement has grown from 4.02 to 4.04 (out of 5), with 69% of healthcare workers now engaged or highly engaged.
- Others are followed by 35% (engaged), 24% (neutral), and 7% (disengaged).
Importance of Employee Recognition at Work
(Source: demandsage.com)
- Recognition plays a key role in keeping employees motivated and engaged.
- About 84% of highly engaged workers say they receive proper recognition for their efforts.
- A survey found that 69% of employees would work harder if they felt more appreciated.
- According to RedBalloon, 43% of employees prefer private and personal recognition from their managers, while 10% prefer public praise, and 9% favor written acknowledgment.
- Another report on Employee Engagement Statistics shows that 37% of employees believe managers and companies should recognize their contributions.
- On the downside, 25% of disengaged workers feel demotivated due to a lack of recognition.
Employee Engagement Performance Statistics
- A report published by Gallup found that engaged employees bring 23% higher profits, 14% more productivity, 81% fewer absences, and 66% better well-being.
- A recent study showed that happy people work about 12% more efficiently.
- Companies with engaged employees see 41% fewer product defects.
- High-turnover industries report 43% fewer resignations, while low-turnover ones see an 18% drop.
- McKinsey says 70% of employees see work as shaping their purpose, making it essential.
- Around 71% of workers rely on employee referrals to find out about job openings.
- When asked about living their purpose at work, 85% of executives said yes, but only 15% of frontline staff agreed.
By In-Office Vs. Remote Work
(Reference: cdn.prod.website-files.com)
- Employee Engagement Statistics also state that hybrid workers reported the highest engagement levels, with 81% saying they feel very engaged in their work.
- Meanwhile, 78% of fully remote workers also reported being highly engaged.
- About 79% of remote employees shared that switching to remote work didn’t affect their daily performance much.
- Additionally, 77% of remote workers said they are more productive working away from the office.
- On the other hand, on-site workers showed the lowest engagement, with 72% describing themselves as highly engaged.
Employee Engagement Strategies
- In 2024, companies with a strong workplace culture that supports leadership values employees, and cares for customers saw their revenue grow by 682%.
- On the other hand, businesses without a positive culture only experienced a 166% revenue increase.
- As per the Employee Engagement Statistic, top companies worldwide are 35% more likely to begin onboarding new hires before their first day.
- At Best Buy, even a small 0.1% boost in employee engagement adds USD 100,000 annually.
- Unfortunately, 50% of employee reviews are delayed, and 51% feel their evaluations are inaccurate and discouraging.
Employee Engagement Profit Statistics
- Engaged employees are less likely to leave, with turnover rates 43% lower. This saves businesses money on hiring and training replacements.
- Gallup found that companies with high employee engagement earn 23% more profit compared to those with low engagement.
- They also experience 28% less loss from waste or theft.
(Source: cdn.prod.website-files.com)
- To determine the cost of disengagement to your company, multiply your total number of employees by 17% (the percentage of disengaged workers in the U.S.).
- Then, take that number, multiply it by the average yearly salary, and calculate 34% of the result.
United States Employee Engagement Trends
(Reference: gallup.com)
- Based on employee engagement statistics, as of August 2024, the total number of employees engaged in the U.S. made up a share of 31%.
- In the same duration, actively disengaged employees accounted for an 18% share.
Employee Engagement Benefit Statistics
- As of 2024, companies with engaged employees enjoy 21% more profits compared to those with disengaged staff.
- Engaged workers are 14% more productive and help improve customer ratings by 10%.
- High engagement also reduces turnover rates by 18% and absenteeism by 41%.
- Workplaces with engaged teams report 70% fewer safety issues.
- These employees are 12% more efficient, helping their organizations outperform competitors by 202%.
- Additionally, engaged workers have a 66% better sense of well-being, leading to healthier teams.
- Companies with engaged staff also deliver 19% higher returns to shareholders.
Employee Engagement Statistics By Demographics
- Employees aged 65 and older are the most engaged, with 25.1% feeling actively involved in their work.
- Younger age groups show less engagement, hitting the lowest point at 8.3% for those aged 25 to 34.
- Engagement slightly improves for workers under 25, reaching 13.6%.
- Meanwhile, Gen Z employees saw a 5% decline, while older millennials experienced a 7% decrease.
- As mentioned in Employee Engagement Statistics, South Asia leads in employee engagement, with 33% of workers actively engaged.
- The U.S. and Canada come next at 31%, while Europe ranks lowest at just 13%.
- Hybrid work setups result in better engagement, with 81% of hybrid employees feeling engaged.
- By comparison, 78% of remote workers and 72% of office workers report similar levels.
- Jobs like sales, office, and construction have low engagement, with only 12% actively engaged.
Top Drivers of Employee Engagement Statistics
(Source: 99firmscom)
- Around 43% of employees prefer to be recognized for their efforts in private, while only 10% like public recognition.
- For 37% of workers, appreciation from their bosses matters the most.
- In 2024, others value more independence (12%) and motivation (12%).
- Some also seek better pay (7%), improved training (6%), or promotions (4%).
Employee Engagement Statistics on Business Success
- In companies with low engagement, 91% of workers say their leaders struggle with good communication.
- About 71% of executives think employee engagement is key to their company’s success.
- Businesses with highly engaged teams see 21% higher profits.
- However, 33% of employees admit they don’t trust their employers.
- Companies with poor work culture grow much slower, at only 166%.
- Nearly half (47%) of job seekers are looking for workplaces with better culture.
- Additionally, about one-third of professionals who quit their jobs say boredom is the main reason.
Employee Engagement Software Market Statistics
(Source: market.us)
- The Employee Engagement Software market was valued at approximately USD 1.0 billion in 2023, reaching Engagement Statistics, which state that the market size will reach USD 1.1 billion by 2024 and further expand to USD 1.3 billion by 2025.
- The upward trend is projected to accelerate, with the market size estimated to reach USD 1.5 billion in 2026 and USD 1.7 billion in 2027.
- By 2028, the global employee engagement software market is anticipated to generate USD 1.9 billion in revenue.
- This momentum is forecast to persist through 2029, with revenues climbing to USD 2.2 billion.
- The market is estimated to hit USD 2.5 billion by 2030, marking a critical milestone.
- The growth trajectory does not stop there, as projections for 2031 estimate market revenues to reach USD 2.9 billion, with subsequent increases leading to USD 3.3 billion in 2032 and an impressive USD 3.8 billion by 2033.
Costs of Employee Disengagement Statistics
- Employee disengagement is a costly issue. It drains nearly USD 2 trillion from the global economy each year and costs typical S&P 500 companies USD 282 million annually.
- Disengaged workers lead to USD 8.8 trillion in lost productivity worldwide.
- Around 85% of employees are considering job changes.
- Hiring a new employee costs USD 4,700 on average, but total expenses can reach four times their salary.
Employee Engagement in Delivering Customer Experience Statistics By Country
(Reference: scoop.market.us)
- Employee engagement shows that in France and Italy, about 45% of workers were highly engaged, but some disengagement remained.
- Italy had no employees listed as “not engaged,” while France recorded 3.9% in this group.
- Belgium showed 44.7% highly engaged workers but had a higher disengagement rate of 10.5%.
- Countries like Australia, Germany, and Japan had fewer engaged employees, with figures of 40.7%, 39.1%, and 38.8%, respectively.
- Germany faced more disengagement, with 21.7% of workers feeling somewhat disconnected.
- Canada, the UK, Ireland, and Singapore had under 40% high engagement but experienced less outright disengagement.
- Poland and New Zealand had the lowest engagement, at 29% and 25%, with most employees moderately engaged.
Product Development Updates and Future Releases
- In 2024, Zensai introduced ‘Learn365,’ an AI-driven learning management system integrated with Microsoft 365, offering personalized learning paths and automated course creation.
- Whatfix expanded its product suite by launching Mirror, an application simulation tool designed for interactive, risk-free employee training. This tool complements Whatfix’s existing Digital Adoption Platform.
Conclusion
This article on employee engagement statistics described that this is an essential practice for a successful workplace. When employees feel valued, supported, and connected to their work, they perform better and stay longer with their companies. In recent years, organizations have prioritized understanding their employees’ needs, offering meaningful recognition, fostering a positive culture, and providing growth opportunities.
Engaged employees contribute to higher productivity, better teamwork, and overall success. By investing in engagement strategies, companies can create a thriving workplace that benefits both employees and the business.
Sources
FAQ.
Employee engagement boosts productivity, improves morale, reduces turnover, and helps businesses achieve better results.
Key drivers of employee engagement include recognition, growth opportunities, good leadership, meaningful work, and support.
Companies can measure employee engagement through surveys, feedback, performance metrics, and regular check-ins.
Signs of low employee engagement include poor performance, lack of motivation, absenteeism, and high turnover rates.
- Recognise and reward achievements.
- Offer training and growth opportunities.
- Encourage open communication.
- Foster a positive workplace culture.
- Support work-life balance.
- Provide meaningful work.
- Build trust through leadership.
- Act on employee feedback.
- Set clear goals and expectations.
- Celebrate team successes.

Maitrayee Dey has a background in Electrical Engineering and has worked in various technical roles before transitioning to writing. Specializing in technology and Artificial Intelligence, she has served as an Academic Research Analyst and Freelance Writer, particularly focusing on education and healthcare in Australia. Maitrayee's lifelong passions for writing and painting led her to pursue a full-time writing career. She is also the creator of a cooking YouTube channel, where she shares her culinary adventures. At Smartphone Thoughts, Maitrayee brings her expertise in technology to provide in-depth smartphone reviews and app-related statistics, making complex topics easy to understand for all readers.