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Employee engagement might sound simple, but it matters more than most think. When workers feel connected to their jobs, teams reach goals faster and staff are less likely to quit. Still, the numbers show many people are not excited about their work. In 2025, employee engagement around the world is low, and the cost of this has reached new highs. Businesses are asking what they can do to help their teams feel more involved and excited.
This blog shares key facts about employee engagement, so you can see why it counts and where things stand now. Each statistic tells a story about what workers need, what companies miss, and where there is room to do better.
What Is Employee Engagement?
Employee engagement is how much a worker cares about their job and the company they work for. Engaged employees feel motivated and part of a team. They do more than the basic tasks; they want their work to help the business succeed. When employees are engaged, they show up ready to give their best and often go out of their way to help others.
Benefits of Employee Engagement
Employee engagement gives workplaces many real benefits. Here’s how:
- Higher productivity: When people care about their work, they put in extra effort and focus. Engaged workers tend to finish more tasks on time and look for ways to do their jobs better.
- Lower turnover: Employees who feel connected to their company don’t look for new jobs as often. This means less money spent hiring and training new people, and teams get to keep their skills and knowledge.
- Better customer service: People who enjoy their work are nicer to customers and want to solve problems. Often, engaged employees go out of their way to give customers a good experience.
- More innovation: When employees feel safe and valued, they share ideas and suggest improvements. Fresh ideas can lead to better products or easier ways to work.
- Fewer absences: Engaged employees want to show up and do a good job. They call in sick less often or take fewer days off, which keeps the team strong and steady.
- Improved morale: A team that feels supported works better together. With less stress and more trust, everyone gets along, which makes the workplace a happier place.
- Higher profits: All these good things add up. When workers are engaged, companies often make more money, avoid costly mistakes, and provide better service.
Each benefit supports the others and helps both the people and the business.
Factors Influencing Employee Engagement Statistics
Several things can affect how engaged an employee feels. Here’s what matters most:
- Leadership style: A good manager leads by example and listens to the team. Friendly leaders who care about their team help everyone do their best work.
- Work culture: This is about how people treat each other and feel at work. A safe, fair, and friendly culture helps everyone stay positive and motivated.
- Communication: Clear and honest talk from leaders builds trust. Employees feel valued when they know what is going on and can share their own views.
- Growth opportunities: If workers can learn new skills and move up in the company, they are more likely to stick around and try hard.
- Recognition: Simple acts like saying “thank you” or calling out good work help workers feel seen. People want to know their hard work matters.
- Feedback: Getting feedback helps employees see what’s going well and what needs work. It also lets them improve and shows that their progress matters.
- Purpose: Staff work harder when they think their job makes a difference. Purpose gives people energy to do their best.
- Diversity, equity, and inclusion: Workplaces where everyone, no matter their background, feels welcome and respected, build better teams. When people feel like they belong, they stay involved.
Employee Engagement: Global and U.S. Benchmarks
1. Only 23% of employees are “actively engaged” worldwide
According to Gallup’s 2023 data, just under one-quarter of employees around the world feel genuinely engaged at work. This means most people are doing the bare minimum or feel disconnected. Low engagement leads to lower productivity and higher turnover, showing the urgent need for companies to boost engagement efforts globally.'
Feeling the urgency behind this low engagement rate? Learn how ThriveSparrow’s Pulse Surveys and Real-Time Feedback help organizations detect and act on employee sentiment early.
2. U.S. employee engagement fell to 31% in 2023
Gallup reports that in the United States, engagement dropped to 31%, down from 36% just a few years ago. This decline means fewer people are emotionally invested in their roles, hurting business outcomes. Organizations must focus on re-engaging staff to reverse this trend and improve workplace morale.
3. In Europe, employee engagement is as low as 13%
European workers show even weaker engagement levels, with only about 13% considered engaged. This stark figure reveals that many regions face challenges in making employees feel connected. Companies in these markets have a great opportunity to lead by improving workplace culture and communication.
4. Over half (51%) of workers are "disengaged" globally
According to Gallup’s employee engagement survey, 51% of employees are disengaged in the workplace, while 13% are actively disengaged. Many employees do not invest emotional energy into their roles and simply “clock in” and “clock out.” These disengaged employees often feel disconnected or overlooked. This can lead to missed deadlines, poor quality work, and a negative team atmosphere.
5. 13% of employees are “actively disengaged” and may hurt workplace morale
According to Gallup’s employee engagement survey, 13% of employees are actively disengaged. These employees not only perform poorly, but they can also spread negativity throughout the team. Their attitude can discourage others and lead to a toxic work environment. Identifying and addressing this group quickly is important for keeping the workplace healthy.
6. Companies with highly engaged employees experience 21% to 23% higher profits
Engaged teams drive better business results, as shown by Gallup’s analytics. Organizations with high engagement report noticeably increased profits—sometimes up to 23% more. This happens because engaged employees solve problems faster, innovate, and provide better customer service.
7. Productivity improves by 14% to 17% when employees are engaged
Teams that feel connected and motivated deliver significantly higher output. Gallup’s research shows that engagement improves productivity by up to 17%, helping companies meet or exceed goals without adding staff or hours.
8. Customer ratings improve by 10% when employees are engaged
A report by Gallup indicates that companies with high levels of employee engagement achieve a 10% increase in customer ratings. When employees care about their work, it shows in how they treat customers. Customer satisfaction scores go up as engaged workers deliver better service, which in turn improves sales and builds brand loyalty.
9. Employee disengagement costs the global economy up to $8.8 trillion yearly
This staggering figure from Gallup demonstrates how disengagement drains the worldwide economy through lost productivity, errors, and turnover. It’s close to 9% of total global economic output, underscoring the financial importance of engagement.
10. In the U.S., low engagement costs businesses $450 to $550 billion every year
The impact of disengaged employees is massive domestically, too. The U.S. economy loses nearly half a trillion dollars annually due to absenteeism, errors, and job-hopping caused by poor engagement.
11. Engaged organizations have 59% less turnover
According to Gallup, leaders who build engagement retain employees much better. Data shows that companies with strong engagement have almost 59% fewer employees quitting. This saves on recruitment and training costs and helps keep valuable knowledge within the company.
12. Even moderate increases in engagement lower turnover by 18%
According to the State of the Global Workplace report, organizations with highly engaged employees see an 18% decrease in staff turnover. Even small improvements in engagement can have a big impact on retention rates. An drop in turnover means fewer disruptions and more stability, which helps companies maintain productivity and morale.
13. One-third of employees quit due to boredom and lack of challenge
According to HR Dive, one-third (33%) of respondents said, “I’m bored, need a new challenge,” as their reason for leaving their job. A major reason people leave jobs is feeling unchallenged. When work becomes routine and unstimulating, employees lose interest and start looking elsewhere. Offering varied and meaningful projects helps keep teams engaged and reduces turnover.
14. Engaged employees miss 41% to 81% fewer workdays
According to Gallup, engaged employees have 41% lower absenteeism compared to their disengaged peers. Companies with high employee engagement see much less absenteeism, meaning fewer disruptions and lower overtime costs. This also helps teams work better together and finish projects more reliably.
15. 31% of respondents report extremely high levels of stress at work
CareerBuilder’s research on workplace stress reveals a concerning trend: nearly 31% employees say they experience extremely high levels of stress at work. This highlights just how widespread and serious the issue of workplace stress has become for today’s workforce.
16. Healthy, connected employees take 53% fewer sick days
According to Gallup, organizations directly benefit when employees’ overall well-being thrives—resulting in 53% fewer sick days, higher productivity, and lower rates of burnout and turnover. When employees feel supported and valued, their stress levels drop and their physical health improves, leading to fewer absences. Wellness and engagement go hand-in-hand: the more engaged your people are, the healthier and more present they are at work.
17. 61% of workers feel burned out at least sometimes
Burnout remains a serious challenge. Many employees report feeling exhausted and overwhelmed. Without addressing stress and workload, engagement levels will stay low and affect productivity.
18. 38% of remote workers feel exhausted by frequent virtual meetings
According to data from Doodle, a scheduling tool company, a full week of virtual meetings can take a real toll on employees. In fact, 38% report feeling exhausted, and 30% say they feel stressed after a week packed with online meetings.
19. Employees who feel connected are 68% less likely to burn out
Building strong relationships and support networks at work makes a big difference. Staff who feel connected to colleagues and leaders have a much lower risk of burnout.
20. Recognition motivates 37% of employees most at work
In an employee survey, participants were asked, "What is the most important thing your manager or company does that motivates you to do great work?" While responses varied, a clear pattern stood out: 37% of employees said that receiving more personal recognition would inspire them to deliver better work more frequently.
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21. 86% of employees say communication helps them stay motivated
A poll by Fierce, Inc., a leadership development and training company, surveyed more than 1,400 employees, executives, and educators. The results revealed that 86% of respondents believe ineffective communication is the main reason for failures in the workplace.
22. Frequent feedback drives 12.5% higher productivity
Gallup found that teams receiving strength-based feedback are 12.5% more productive than those with no feedback.
Transform your feedback culture with ThriveSparrow's Feedback module to keep motivation high and performance consistent.
23. Only 22% of companies understand the real causes of disengagement
Many organizations don’t measure or know why employees disengage. Without this insight, fixing problems is guesswork, hurting retention and performance.
24. Just 16% of companies use technology to track employee engagement
Despite the availability of great tools, few firms use software to monitor how people feel day to day. Using technology can unlock insights that manual methods miss.
25. Only 29% of workers feel satisfied with career growth opportunities
SHRM’s Employee Job Satisfaction and Engagement survey uncovered that just 29% of employees feel “very satisfied” with the career advancement opportunities available to them. This finding highlights a significant gap in employee satisfaction when it comes to growth and development within organizations.
Career development matters. Find out how you can promote growth with personalized learning recommended in ThriveSparrow’s personal development plans.
26. 80% say learning new skills would increase engagement
Offering training and upskilling is a proven way to boost motivation. Most employees want to learn and grow, which ties directly to feeling more engaged.
27. Healthy workplace cultures grow revenue 4x times faster
According to Deloitte’s "Culture of Purpose" study, companies with strong organizational cultures experience revenue growth at four times the rate of those without. This demonstrates just how powerful a strong culture can be for business success.
28. 77% of workers say culture helps them do their best
A recent study by Eagle Hill Consulting found that 77% of employees believe their company’s culture plays a key role in helping them do their best work. This highlights just how important a positive workplace culture is for employee performance.
29. 68% would quit if they didn’t feel supported or welcomed
Belonging is critical. Over two-thirds of workers would leave if they felt isolated or ignored by leadership, showing the importance of respect and inclusion.
30. Remote employees are 13.5% more productive than in-office staff
One of the most well-known studies on remote work comes from 2014, when the co-founders of the Chinese travel website CTrip conducted an experiment by letting some employees work from home regularly. They then compared the productivity of these remote employees to those who remained in the office. With all other factors held equal, the remote workers made 13.5% more calls than their office-based colleagues—essentially adding up to almost a full extra day’s worth of work each week.
How To Encourage Employee Engagement
If you want your team to be more engaged, focus on these actions:
- Give regular feedback: Don’t just wait for yearly reviews or when things go wrong. Have short check-ins to talk about what’s going well and what can change.
- Recognize good work: When someone does a great job, notice it. Praise can be big, like a company award, or small, like a simple “Great work!” in a meeting.
- Support growth: Let workers try new things, give training, or set up mentorship programs. Show them they can grow in their jobs.
- Ask for input: Invite team members to share ideas and make decisions. If you listen and act on their feedback, they feel more invested in their work.
- Promote work-life balance: Support flexible hours and respect time off. Don’t expect people to always work late or answer messages outside work.
- Build trust: Always be honest, keep promises, and treat everyone fairly. Trust grows when leaders show they care and respect all workers.
- Foster teamwork: Set up chances for teams to work together, talk openly, and solve problems as a group. When people know and trust each other, they work better.
- Set clear goals: Tell everyone what is expected and why it matters. If workers know how their job helps the company, they are more committed.
What employee engagement statistics are really telling us
Look closely at the numbers, and one thing stands out: people want to be heard, appreciated, and given clear paths to grow. They crave leadership that listens, values that resonate, and recognition that feels genuine—not rushed or routine.
Employee engagement isn’t about occasional grand gestures; it’s about consistently getting the fundamentals right, every day.That’s exactly what ThriveSparrow is designed for.
We take these insights seriously and transform them into practical tools that empower companies to become workplaces people love. From real-time feedback and meaningful recognition to goal tracking and culture insights, ThriveSparrow helps build stronger teams, deeper connections, and better results—one thoughtful interaction at a time.
Transform your workplace with ThriveSparrow—where engaged teams thrive, innovate, and stay.
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