The Modern Workplace: 17 Game-Changing Employee Engagement Statistics

Employees worldwide find more meaning when they feel more connected with their team. Yet only 15% of them are fully engaged in their workplace.

In a positive light, 83% of organizations are becoming more people-centric, putting their employees' needs on a pedestal. Consequently, higher employee engagement across industries produced positive business outcomes.

It's important to note that engagement levels in the workplace fluctuate over time. Luckily, employee engagement statistics in 2022 set a record high. For a deeper dive into the current state of the global workplace, explore the employee engagement statistics and trends per industry.

What is the Average Employee Engagement?

The current state of the global workplace rebounded after employee engagement shrank in 2020. According to Gallup, employee engagement set a record of 23%. While this data suggests a significant improvement in global productivity, "quiet quitting" is still prevalent among global workers. 

The Gallup Employee Engagement Statistics 2023 report found that 6 in 10 employees are disengaged at work, leading them to quit. These numbers also suggest an improved job market as employees seek internal growth.

The stats below show a bigger picture of employee engagement and productivity across regions and industries.

Employee Engagement Per Industry

Business intelligence and technology companies are on top of their employee engagement strategies. As a result, these industries have been at the forefront of the top sectors with the most engaged workers.

Google's 80/20 Rule and Microsoft's Daily Pulse Checks are good examples of employee engagement strategies. These strategies help employees manage their engagement at work and allow the company to learn how their employees are doing.

While employee engagement varies across industries, its principles do not fall far. Look into the current state of workplace engagement in different sectors below.

1. New technology companies have a 74% employee engagement rate.

(Culture Amp)

Employees in new tech industries are 42% more engaged in the workplace than in other sectors. This survey defines engagement as employee retention and emotional commitment to the workplace. 

Meanwhile, 84% of these employees find their jobs worthwhile. On the other hand, most people in new tech fields stay at least 1–2 years before going to another company.

2. 80% of employees at one of the world’s largest healthcare providers feel good at work.

(Great Place To Work)

Kaiser Permanente is not only one of the world’s largest healthcare organizations. They also have the most engaged workers, with 80% of employees saying it’s a great workplace. A typical US-based company has 57% total employee engagement.

The company places top priority on employee work-life balance and elite benefits. They are also widely recognized for being inclusive regarding job opportunities for people with disabilities.

3. 89% of Spotify employees feel optimistic about their work culture.

(Comparably)

With over 195 million premium subscribers, Spotify is arguably the most popular streaming service. Unsurprisingly, it does not fall short as an employer through employee assistance and self-care programs.

Spotify conducts bi-annual employee surveys to measure employee engagement correctly. A recent Comparably survey garnered 89% positive reviews from employees. The remaining 11% were constructive reviews to help improve Spotify’s work culture.

4. In retail, 77% of workers are disconnected from their brand.

(Oak Engage, Gallup)

In a customer-facing industry, retail workers directly impact customer retention and must feel optimistic about their roles. Unfortunately, many retail employees don’t find passion in their work. This attitude could hurt the customer experience and overall business success.

According to Gallup, retail managers have the upper hand in turning this around. 70% of the variance in employee engagement relies on the manager’s intervention. Managers can implement these simple efforts in the workplace to provide better experiences for employees:

• Defining clear expectations
• Connect employees with the brand
• Give proper and adequate recognition
• Improve communication strategies

5. 74% of professional service workers are engaged, with the highest distribution in financial services.

(Culture Amp)

Employee engagement in professional services firms is associated with higher revenue and performance. This association leads to 78% of engaged employees saying the company prioritizes their well-being.

Among the represented industries in this benchmark, financial services have the most engaged employees at 29%. Meanwhile, architecture and planning workers are disengaged, with only 3% of active workers.

Data on Employee Engagement Per Country

Officevibe gathered employee engagement data from over 150 countries and uncovered multiple metrics. Stats revealed that the top 3 areas to improve in the workplace are recognition, feedback, and happiness.

Among these metrics, the US comprised the most significant amount of data. This result is unsurprising, considering the country has over 160 million employees.

Businesses and organizations looking to expand outside their country will have an edge if their employees are engaged. Look at these numbers to understand the state of employee engagement from country to country.

6. The decline in annual employee engagement in the US continues at 32% in 2022.

(Gallup)

The US employee engagement statistics trend started in late 2021, when numbers plummeted from 36% to 34%. Gallup gathered data from full-time and part-time workers in all industries. 

17% of these employees are actively disengaged, bringing the ratio to 1.9 to 1. This ratio comprises engaged and actively disengaged US workers, respectively. 

The top elements influencing this number are the following:

• Clearly-defined expectations and recognition
• The suitable materials and equipment
• Opportunity to do what they do best daily
• Connection to the organization’s mission or purpose

Despite this decline, the US remains the top global region for engagement compared to other areas, specifically North America.

7. 63% of Canadian employees are “thriving” despite stress and worries.

(Benefits Canada, Gallup)

Employee Engagement Statistics Canada’s report in 2022 reveals their engagement rate stays in line with the global average, at 21%. However, the US continues to have higher employee engagement at 35%.

Among the Canadian respondents, they reportedly felt the following daily:

• 55% felt stressed
• 45% felt worried 
• 23% felt sadness, 
• 19% experienced anger 

According to a Gallup press release, “thriving” employees are less likely to be absent and more likely to stay longer. Companies can lower their turnover by taking care of their workers’ well-being.

8. Less than 1 in 10 UK employees are “enthusiastic” about their work.

(Personnel Today)

With only 9% of employees feeling enthused about their jobs, the UK has the worst engagement levels in Europe. This rate is below the 14% European average. 

In the UK, only 40% actively seek jobs. Despite this number, 60% claimed they were thriving and living a quality life. Similarly, levels of active disengagement cost the UK its global productivity. The good thing is that there is already awareness surrounding this concern.

Engagement is the key, including for this Twitter user.

Shocking estimates from #StateOfTheGlobalWorkplace . Engagement is key. pic.twitter.com/qfBYGwMS7P

— Anneke Panman (@apanmaster) October 5, 2017

9. 14% of Australian and New Zealand employees combined are engaged, while 71% are disengaged.

(Gallup, Elmo Software)

While Australia and New Zealand are among the regions with high employee evaluations, their engagement scores are relatively low. On a scale from 0 to 10, with 10 being the best possible life, their average rating is 7.36.

A survey shows these employees only attend work to get by during the day. Sadly, 15% of members are actively disengaged. According to Elmo Software, the causes of employee disengagement in Australia are:

• Low wages
• Limited chances for career growth
• Poor employee management
• Stressful workplace
• Hired employees are not a good fit
• Companies or offices won’t adapt to change

10. In the APR, South Asia leads in employee engagement for those with employers at 33%.

(Business Wire, McKinsey & Co.)

South Asia's 7% increase in employee engagement helped recover the global average for engagement and job opportunities in 2022. India contributed significantly to this number due to the country's large population.

Mental resilience and high levels of responsibility are still the main traits expected of Asian employees. This trait led to high rates of employee engagement within the region. However, it also caused them to feel burned out, depressed, stressed, and anxious. 

The global pandemic has increased stress levels, particularly among South Asian employees, and cultural differences influence stress management. East Asian countries, especially China, exhibited the most work stress among young professionals at 60% and remote workers at 61%.

Statistics Related to Productivity and Employee Engagement

One thing studies show about employee engagement is the strong and consistent correlation between performance and business outcomes. The same is said about the impact of profitability and employee productivity across industries and regions.

When emotionally connected with their team, employees tend to become more efficient. They are more likely to get the work done without compromising quality.

Let’s look at how engagement influences productivity in the workplace with these 2023 stats.

11. Effective internal communication motivates 85% of employees.

(Trade Press Services)

Corporate communications hold together the internal processes of a business. Stakeholders and employees alike find communication essential to improving engagement and business growth.

74% of workers feel left out when they miss company information and news. While only 21% of internal communicators believe employees understand the company’s decisions and strategies. On the contrary, most employees like being regularly informed to connect with the company and drive sales growth.

12. Employee recognition motivates 80% of employees to work harder.

(Zippia)

37% of employees find recognition essential for success. They feel happier and more productive at work when their superiors appreciate them. When employees feel more pleased, they are 13% more productive.

Statistics on employee recognition show that workers are 2.7 times more engaged when they feel valued. Simply recognizing their efforts is a decisive motivator to put in more work.

13. A full-time average worker is only productive for less than 3 hours daily.

(Voucher Cloud)

A study from a global money-saving brand found that the average worker is only productive for 2 hours and 23 minutes. That is more than 5 hours wasted in an average workday of 8 hours.

Their survey reveals these top 10 distractions:

• Social media (47%)
• News websites (45%)
• Outside-of-work discussions (38%)
• Making hot beverages (31%)
• Smoking breaks (28%)
• Texting (27%)
• Snack breaks (25%)
• Making food (24%)
• Calling friends or partners (24%)
• Job search (19%)

Only 21% say they are productive, while 79% of workers admit they are not. 19% of the total are guilty of spending time searching for new jobs.

Employee Engagement Trends

Trends for employee engagement in 2023 emphasize the importance of a positive work culture. This trend includes taking initiatives to support employees through wellness programs.

89% of US employees are happier when they feel improved. The more they feel cared for in the workplace, the more likely they will recommend it to a friend.

As employee engagement trends change over time, companies call for an upgrade in their strategies. These 2023 trends will help you build a happier, more engaged workplace.

14. Employee engagement has a 3.8 times greater influence on work location than stress.

(Gallup)

Work location influences employee engagement just as much as stress, but it does not primarily define it. Employee engagement has more to do with emotional connections between the team and superiors.

Although 75% of remote workers feel more productive, flexible work arrangements are more like a bonus. Moreover, the work-at-home setup makes them feel trusted.

15. Making HR “more human” retains 70% of workers who seek new jobs.

(Up Your Culture)

A Workforce Institute Study reports that 70% of workers actively seek jobs while still employed. However, HR can turn this around by leveraging employee advocacy.

Treating employees as individuals with unique ideas and needs boosts morale. On the other hand, working while submitting to “rigid rules” is not engaging for many.

People-centric HR attracts top talent and makes 75% of employees stay longer. The key to achieving this is empathy. 90% of employees believe building rapport with the organization is vital for retention.

16. Inclusive and diverse firms will have 35% more return on investment.

(McKinsey)

An inclusive and diverse global workplace is becoming increasingly important. Besides financial returns, it fosters a more creative and engaged workforce. A diverse workplace is also 1.32 times more productive than workplaces that don’t adopt diversity and inclusivity.

Practicing these elements goes far beyond representation and creates a sense of belongingness among employees of an organization.

17. Over 1 in 4 employees quit their jobs due to mental health problems.

(Jobsage)

Nearly 2 in 5 workers said work or workplaces negatively impacted their mental health between 2021 and 2022. This problem comes second only to the financial difficulties experienced by 42% of employees.

Some employees experiencing mental health problems left their jobs (28%) and experienced burnout (28%). Other factors include:

• Stress at 55%
• Depression at 38%
• Lack of motivation at 37%
• Anxiety at 36%
• Anger at 31%

A simple mental health dialogue with a manager helped 9 in 10 employees, while 1 in 5 enjoyed HR talks. Interestingly, old and new employee engagement studies had one thing in common: they emphasized the role of leaders in creating a healthy workplace.

Conclusion

Data from the last three years suggests that the global economy will always see tough times. Businesses and organizations can minimize their impact by engaging their teams.

Adopting employee engagement in business goals is critical for overall growth and success. It also creates a strong job market that puts employees’ needs first. If there’s one thing to note, there is no better time to invest in employee experience than now.