The consequences of poor engagement are costing you more than you think – here are key employee engagement statistics to show you why.
Employee engagement isn’t just a buzzword; it’s the backbone of a productive, motivated and successful workforce.
Engaged teams show up with purpose, contribute and stick around for longer.
All things and business would be happy to see on a day-to-day basis.
But when there are more distractions than ever, both in and out of work, how do you keep employees engaged?
Well, we’ve dug into the data to pull out some key employee engagement statistics that will push you to engage your people.
In this blog, we’ll share:
- What employee engagement is
- The importance of employee engagement in the workplace
- 15 employee engagement statistics you need to know
Let’s get started.
What is employee engagement?
Employee engagement is a workplace concept that refers to the level of enthusiasm and dedication an employee feels towards their job and organisation.
Related: What is learner engagement and why is it important?
It goes beyond simple job satisfaction; it encompasses an emotional commitment that motivates employees to contribute to the success of their company.
Engaged employees are not just present physically but are also mentally and emotionally invested in their work.
With the ongoing battle that organisations are having when it comes to employee retention, employee engagement is more important than ever.
In fact, there is currently a ‘war for talent’ going on. Due to skills shortages and competition for top talent, employees aren’t just looking at benefits and perks when staying at a company, but culture too.
Investing in an effective employee engagement strategy is key, but remember that a happy employee doesn’t necessarily mean that they’re engaged.
Key characteristics of employee engagement
It’s all well and good talking about employee engagement and knowing what it is.
But what does it look like?
You might think someone is happy in your organisation, but are they truly engaged?
Well, there are 5 key characteristics you can look out for:
1. Emotional commitment
Engaged employees care deeply about their work and the organisation. This commitment drives them to go above and beyond their job descriptions.
2. Job satisfaction
While job satisfaction is a component of engagement, it alone does not equate to full engagement. True engagement combines satisfaction with a deeper emotional and psychological attachment to the job.
3. Productivity and performance
Engaged employees are more productive, often exceeding performance expectations. Their enthusiasm and commitment lead to higher quality work and better outcomes for the organisation.
4. Retention
High levels of engagement are linked to lower turnover rates. Employees who feel engaged are more likely to stay with the company, reducing the costs and disruptions associated with frequent staff changes.
5. Advocacy
Engaged employees are often the organisation’s best advocates. They speak positively about their workplace, enhancing the company’s reputation and aiding in talent attraction.
The importance of employee engagement in the workplace
As we’ll talk about later, engaged employees do their best work and are overachievers when it comes to business goals.
This is great news for you.
Engaged employees are important to an organisation because:
- Employee engagement increases productivity: Engaged employees outperform disengaged employees and companies with high employee engagement are 21% more profitable.
- Employee engagement improves workplace morale
- Engaged employees are less absent, by as much as 41%
- And of course, replacing employees is expensive business. Engaged employees stick around for longer which is better for you financially.
L&Ds role in employee engagement
When it comes to employee engagement, L&D is a key way to attract and retain great employees.
Here are a few reasons why:
Professional growth and development
When you invest in your employees with L&D, it shows them that you care about their growth.
Providing learning opportunities makes them feel valued and appreciated. That’s why 61% of employees prefer to acquire new skills through workplace learning programs.
And when this happens, they feel more motivated and invested in their work.
Collaboration & knowledge sharing
Only 46% of employees said that communication is good between different teams.
This can be a big problem.
L&D can create a culture of collaboration and knowledge sharing.
When you’re more connected to your employees it breaks down silos and helps team work thrive.
It’ll leave employees feeling empowered to take initiative and keep learning.
Plus, it can ignite more knowledge sharing, which helps everyone.
💡 Pro Tip
Forums can help boost engagement between teams and share valuable knowledge. With an LMS like BuildEmpire, you can get the best of both worlds in L&D and connect your teams like never before.
Boost retention and performance
As mentioned earlier, performance is a key sign of an engaged employee, and L&D helps you support boosting just that.
Employees who know and use their strengths daily are nearly six times more engaged.
Learning opportunities show employees that the company is invested in their professional growth, which links to morale and reduces turnover.
It provides employees with a clear route to their goals and progression while allowing them to develop valuable skills that benefit both the individual and the organisation.
Personalisation and choice
With L&D, you can personalise how you engage your employees.
You can take them down a learning path relevant to them for professional progression and, in turn, make them feel that their learning isn’t just a tick box exercise.
Employee engagement increases by 23% when employees are given learning opportunities that are relevant to their roles.
More personalisation equals more effectiveness.
Key employee engagement statistics you need to know
The effects of employee engagement go beyond just better employee retention.
That’s what makes it so vital when it comes to building a learning and development strategy.
Engaging your employees can have huge impact on other business outcomes, so here are some key employee engagement statistics:
The best month for LMS engagement is January
Our state of learning and development analysis for 2025 looked at our customer data to analyse when users were logging in most.
We found that January saw the highest percentage of user logins.
Low engagement costs
Employee engagement in the UK is notably low. But this isn’t just bad for companies.
It costs the economy money too.
This low engagement level has significant economic implications, with estimates suggesting it costs the UK economy 11% of GDP annually, equating to approximately £257 billion.
Companies with engaged employees outperform those without by 202%
Engaged employees not only perform better internally but also enhance customer satisfaction.
Their commitment and positive attitude are reflected in their interactions with customers, leading to better service and increased customer loyalty.
Only 20% of employees worldwide are engaged at work
This stark statistic from Gallup highlights a global crisis in employee engagement.
With just one in five employees feeling engaged, there is significant room for improvement.
Companies must focus on creating meaningful work experiences and fostering a supportive culture to boost engagement levels.
Highly engaged teams show 21% greater profitability
This statistic underscores the direct correlation between employee engagement and business outcomes.
Engaged employees are more productive, leading to higher profitability.
Organisations that prioritise engagement can expect to see a significant return on investment through improved financial performance.
Companies with high employee engagement experience a 59% lower turnover rate
Employee retention is a major concern for businesses, and high engagement levels can dramatically reduce turnover.
By fostering an engaging work environment, companies can retain top talent and minimise the costs and disruptions associated with frequent employee turnover.
Engaged employees are 41% less likely to be absent from work
Absenteeism can be a costly issue for organisations.
Engaged employees, who feel connected and committed to their work, are less likely to miss work, leading to increased productivity and reduced operational disruptions.
69% of employees say they would work harder if they were better recognised
Recognition is a powerful driver of employee engagement.
When employees feel appreciated for their contributions, they are motivated to perform at higher levels. Implementing robust recognition programs can significantly enhance engagement and productivity.
Highly engaged employees are 87% less likely to leave their companies
Innovation is crucial for staying competitive, and engaged employees are more likely to contribute innovative ideas.
They are less likely to leave, providing a stable workforce that continuously drives creative solutions and improvements within the organisation.
70% of the variance in employee engagement scores is due to the quality of the manager
Managers play a pivotal role in shaping the engagement levels of their teams.
Effective managers who communicate well, provide support, and foster a positive work environment can significantly enhance employee engagement.
Training and development for managers are crucial for improving overall engagement.
87% of millennials consider professional development opportunities to be very important
As millennials become the largest generation in the workforce, their preferences cannot be ignored.
Career development opportunities are a key driver of engagement for this demographic.
Companies that invest in training and growth opportunities are more likely to attract and retain millennial talent.
Remote workers are 2.2 times more likely to say they’re happier at work than those working on-site.
The rise of remote work has transformed employee engagement dynamics.
Many employees report higher satisfaction and engagement levels when working remotely, highlighting the importance of flexibility and work-life balance in today’s workplace.
33% of employees say a lack of open, honest communication has the most negative impact on employee morale
Effective team collaboration and communication are critical components of engagement.
When employees feel that communication is open and honest, they are more likely to feel engaged and connected to their team and organisation.
Engaged employees are 2.5 times more likely to exceed performance expectations
This highlights the strong link between employee engagement and performance, showing that engaged employees are more likely to surpass their targets and deliver outstanding results.
Considering the positive impact on retention as well, investing in employee engagement proves to be highly advantageous.
82% of employees say that technology is a significant factor in determining their engagement at work
The tools and technology provided by an organisation can significantly impact employee engagement.
Efficient, user-friendly technology enhances productivity and job satisfaction, while outdated or cumbersome tools can lead to frustration and disengagement.
Improve your employee engagement with BuildEmpire
Employee engagement isn’t optional—it’s essential.
It’s the foundation of attracting, keeping, and getting the best out of your employees.
Ignore it, and you risk wasting time, talent, and money.
Want the good news?
L&D is your secret weapon.
From boosting retention and performance to driving collaboration and personal growth, the right learning strategy can transform how your teams show up.
So, are you ready to take engagement to the next level?
Discover how our LMS can help you build a motivated, high-performing workforce.
Book a demo today.