The undeniable stats about employee engagement.


Looking for some evidence to support employee engagement in your organisation? We have done some research for you and summarised some of best study-based stats on the impacts of engaged and disengaged employees. 


The engagement stats.

Just 61% of Australians are fully engaged at work (Aon)

86% of leaders believe their job is easier when their direct reports are fully-engaged (Dale Carnegie)

90% of leaders believe that employee engagement will drive positive outcomes for the business but only 25% have an employee engagement strategy (Dale Carnegie)

80% of employees felt more engaged when their work was consistent with the core values and mission of their organisation (IBM)

Three quarters of leaders confirm that job related stress reduces when their direct reports are fully-engaged (Dale Carnegie)

36% of businesses see engagement as a top challenge. (Workhuman)

According to 93% leaders, better results are produced by employees who are fully-engaged than those who aren’t (Dale Carnegie)

The percentage of leaders who consider employee engagement a daily priority – just 26% (Dale Carnegie)


Employee turnover.

89% of leaders believe that employees leave for more money. In reality, only 12% do (Leigh Branham)

More than half of all employees think the grass is greener somewhere else and are looking around for that green patch (Gallup)

The cost of turnover in Australia is estimated at $3.8 billion in lost productivity (PwC)

59% of HR leaders agree that turnover negatively affects performance (AHRI)

Turnover costs any between the equivalent of the departing employee’s annual salary to 2.5 times that. This includes cost of in-house hiring, administration, training and induction, lost productivity while the position is vacant as well as while you on-board the new employee and sign off the departing employee (PwC)

83% of employees with opportunities to take on new challenges say they’re more likely to stay with the organisation (ReportLinker)


Profit and revenue.

Companies who focus on the employee experience instead of work perks have four times higher average profits than those that don’t (Harvard Business Review)

Companies in the top quartile for engagement have 21% higher profitability than those in the bottom quartile (Gallup)

An increase in employee engagement of 5 points is linked to revenue growth of 3 points in the subsequent year (Aon)

Companies  with highly engaged employees achieve twice the annual net income of organisations whose employees lag behind on the engagement scale (Kenexa)

The higher employee engagement, the higher profitability of both the service provider and the service customer (Service Futures)



85% of companies that have a recognition budget of as little as 1% of payroll see a boost to engagement (Workhuman)

1% of payroll is the magic number when it comes to recognition investment with companies that invest this amount being three time more likely to rate their program as excellent (Globoforce)


Absenteeism and presentism.

In Australia, the UK and the US, absenteeism costs a total of $150 billion per year. Presenteeism costs a staggering $1,500 billion (Virgin Pulse)

Companies in the top quartile for engagement have 41% lower absenteeism than those in the bottom quartile (Gallup)

Employees are unproductive for up to a 57.5 days – nearly three working months (Not. A. Typo!) (Virgin Pulse)



Companies in the top quartile for engagement have 70% fewer employee safety incidents than those in the bottom quartile (Gallup)

Disengaged employees have 49% more accidents than those that are engaged (Gallup)

Engaged employees have been found to be five times less likely than disengaged employees to have a safety incident (SHRM)

Engaged employees are seven times less likely to have a lost-time safety incident than those that are disengaged (SHRM)


Customer service and satisfaction.

Employees’ customer service productivity scores and their employee engagement scores had a correlation of .51 (The Conference Board)

A 5% improvement in employee attitudes can drive a 1.3% improvement in customer satisfaction (Harvard Business School)

Companies with engaged employees see 233% greater customer loyalty and a 26% greater annual increase in revenue (Aberdeen)



Disengaged employees make 60% more errors than engaged employees (Gallup)

Companies with high levels of disengagement (lower quartile) experience a 60% drop in overall quality measured by defects in products (InSync)

High scoring business on the engagement scale experience 41% less quality issues that those that rate lower (Harvard Business Review)



Loss of productivity costs the Australian economy $305 billion per year, or $26,300 per employee - yikes! (EY)

A typical employee admits to losing 25% of their day being unproductive (Virgin Pulse)

Companies in the top quartile for engagement have 17% higher productivity than those in the bottom quartile (Gallup)

Employees with the highest levels of engagement report feeling more productive (Virgin Pulse)

85% of employees could be more productive (EY)



Companies in the top quartile for engagement have 20% higher sales than those in the bottom quartile (Gallup)

For every point increase in employee engagement, companies can expect to see an additional 0.6% growth in sales for their organisation (Aon)

Percent of net sales can increase by up to 300% with an engaged team (Gallup)


Employee satisfaction and happiness.

Employees who have strong relationships at work are 2.7 times more likely to be happy (Robert Half)

Nearly two thirds of happy employees consistently put in extra effort at work (Horizons Workforce Consulting)

52% of millennials think that loyalty to their employer is overrated – yep, they are not happy (Red Brick)


A list like this is not exhaustive, new studies are released every week on employee engagement and the impacts on companies however if you are looking for some data to back up your position on building engagement and a culture of recognition, this is a good place to start.  


If you want more insight on how to do this, we are here to help.