While a competitive salary and great employee benefits can always attract top talent to a company, what ultimately makes them want to stay is a positive employee experience. Employee experience is such a pivotal factor for every company since it can have a significant impact on the overall success, productivity, and profitability of the business. When employees have a standout workplace experience, they'll be happier and more engaged with their teams and their projects.
So what can a company do to ensure that engaged go-getters don't become disengaged clock-watchers? We'll let some numbers do the talking.
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Check out these 9 statistics on employee experience and ways to build it up
9 statistics on employee experience
When it comes to understanding the factors that impact the employee experience, there's a lot we can learn from employee engagement statistics. From what keeps employees engaged and the importance of work-life balance, to career development and preventing employee turnover, we explore 9 key statistics that give us a clear overview of what affects employee satisfaction and employee engagement most.
1. 65% of employees are disengaged employees
Engaged employees are productive employees, plain and simple. So the fact that a Gallup study revealed that a jarring 65% of employees don't feel engaged is certainly eye-opening and cause for concern. The same study also found that when employees are highly engaged, teams see a whopping difference of 81% in absenteeism and 14% in productivity compared to their disengaged counterparts.
To keep employees engaged, it's imperative for companies to focus on performance management activities like clearly communicating expectations, ensuring people have what they need to successfully complete their projects, and providing ample career development opportunities.
The power of employee engagement should never be underestimated. Start implementing these employee engagement best practices and witness firsthand how your workforce can thrive.
2. High employee engagement means 23% greater profitability
Having a thriving workforce and highly engaged employees works in everyone's favor. According to Gallup research, when employees feel motivated, the quality of their work increases — and in turn, so does the growth and financial success of the company (by 23%, to be precise.)
On the flip side, this also means that actively disengaged employees can take a serious toll on a company's profitability. They're less likely to feel motivated to go the extra mile which can not only affect customer satisfaction but also eventually leads to increased turnover.
So just how much does this affect the bottom line? Another Gallup study revealed that disengaged employees cost their company the equivalent of 18% of their annual salary. What it boils down to is that keeping employee engagement up has a direct impact on keeping profits up.
If things are starting to take a turn on your teams, it's important to act fast. Read more about how you can spot the warning signs of employee disengagement.
3. Engaged organizations see 59% less employee turnover
Employee experience plays a significant role in increasing engagement and retention and decreasing turnover. Motivated employees aren't just more productive, they also tend to be more loyal and committed to their companies. When an employee is engaged in their work and happy with the company culture, they're far less likely to set their sights on a new job somewhere else. It's no wonder that organizations with an engaged workforce enjoy 59% lower employee turnover rates.
When an employee is satisfied and engaged, they're more likely to have longevity with the company and speak highly of it. In fact, Gallup research shows that engaged employees are 23 times more likely to recommend their organization as a great place to work.
Start improving employee retention with proven strategies and keep your top talent around for the long-haul.
4. 77% of job seekers say that employee experience is a deciding factor
When looking for a job, people want to know that they're committing themselves to both a role and a work environment that suits them. So it's no secret that a positive employee experience helps attract great talent.
One of the best ways for potential candidates to gain this knowledge is word-of-mouth from engaged employees, whether through direct conversations or stumbling upon social media posts praising the company. Glassdoor, a heavy hitter in the realm of employer reviewing sites, reported that 77% of candidates seriously take the company's culture into consideration before deciding to accept an offer.
Want to learn how you can calculate your company's employee Net Promoter Score? All you need to do is ask one simple question. Read Officevibe's comprehensive guide to the eNPS.
5. 1 in 4 employees say their company doesn't celebrate accomplishments
Recognition and workplace happiness are closely tied together — and with good reason. When employees make extra efforts and are acknowledged by their managers or peers, they're more likely to be motivated and feel connected to their work.
But according to Officevibe data, 25% of employees don't feel like their organization dolls out enough kudos. When recognition is given in a genuine manner, it can look as simple as a private message celebrating a small victory and can go a long way in making a colleague feel valued.
Improving your employee experience can start with upping your kudos game. Create a culture of recognition in the workplace with these tips and techniques from Officevibe.
6. 87% of employees expect a healthy work-life balance from their employer
Now more than ever, a healthy work-life balance is non-negotiable to maintain a team of engaged employees. A Glassdoor survey found that the vast majority of employees expect their employer to support them in being able to balance their life between work and personal commitments.
But a healthy work-life balance goes beyond being able to take a break every once in a while during the day; with 47% of people regularly feeling overwhelmed at work, it also means providing your team members with access to important resources for mental and physical health. When you invest in the well-being of your team, you'll also boost employee engagement and job satisfaction, as well as employee performance, which will allow them to provide an overall better customer experience.
How is your team feeling? Check in on your people regularly and ask the right questions in an employee wellness survey.
7. 40% of employees don’t have a development plan to sharpen their skills and drive their growth
When employees feel that they have the opportunity to grow and advance within the company, they're more motivated and engaged in their work, and more likely to stay long-term. However, Officevibe data shows that 40% lack a clear development plan to help them reach their professional goals.
Career development and training can help make employees more effective in their current roles, and better prepared for future roles within the company. Organizations that offer career development opportunities tend to have a more supportive and positive company culture, which can also improve employee morale and satisfaction.
Offering career growth opportunities can help companies retain and develop their talented employees. Sit with your team members and have the important career development talk in your next one-on-one using this free template.
8. 25% of remote employees say that they lack a sense of belonging
The recent shift to remote work has had many positive effects on employees like reducing commute time, increasing autonomy, and creating greater work-life balance. However, a recent BetterUp report revealed that 25% of employees feel as though they don’t belong at their workplace, and 40% of employees now feel isolated.
When employees lack a sense of belonging, their performance suffers and they’re far more likely to seek employment elsewhere — with a turnover risk of 50%.
Building lasting relationships with colleagues is a key factor in boosting engagement and improving the employee experience. Learn how you can maintain genuine connections, regardless of where your employees are logging in from.
9. 73% of employees are considering leaving their jobs
According to a recent study by Joblist, 73% of employees would consider leaving their job if the right offer came along, even if they hadn't been actively seeking new employment at the time. And what's important to note is that changing jobs isn’t always about a higher salary.
In fact, the study also revealed that 74% of younger employees would accept a pay cut for the opportunity to land their dream job, and 23% would take a new position without a pay increase at all. This speaks volumes about the importance of employee experience, career development, and company culture.
Ways to build a better employee experience
From maintaining open communication to putting action plans in place, there are a number of ways managers can improve the employee experience.
Ask for feedback on employee experience
Nothing is more valuable than getting direct feedback from employees on their experience within the company. Tools like employee surveys can help you identify areas where you may need to make improvements, and can also help you understand what your employees value and appreciate about their jobs.
The best way to get the conversation going is with a straightforward survey. Ask your teams these employee experience questions and see how you can move things forward.
Set clear goals for employees
Setting clear goals for your employees can be a powerful way to engage them. It helps them understand what is expected of them and how their work contributes to the overall success of the organization. By implementing a goal-setting framework into your company culture, you can:
- Boost employee retention
- Improve team alignment
- Create a solid vision for the future
- Strengthen employee engagement
Goal-setting can be challenging, even for the most experienced of managers. Try these effective goal-setting tips to help create a better employee experience and boost alignment on your team.
Make changes and monitor progress
The most important thing about collecting employee feedback is what you do with the data. Once you've identified areas where you can make improvements, you can actively work on making changes and monitoring progress on a regular basis.
If you're not sure where to start measuring, take a look at these 8 key metrics to start improving your employee experience.
Encourage continuous feedback
Continuous feedback allows employees to regularly share their feelings and concerns with managers while also allowing managers to share theirs too. It provides you with ongoing insights into employee happiness, what’s working well, and what needs to be improved.
To optimize your organizational strategies, one must be aware of the potential gains in the return on investment from employee experience. Our comprehensive guide explains this concept in detail.
Use software to bolster your employee experience
What these employee engagement stats show us is that cultivating a great employee experience truly benefits everyone. From employee engagement and satisfaction to company success and profitability, everyone wins if you prioritize and support your most invaluable asset: your workforce.
Officevibe offers tools to help boost employee engagement, foster great company culture, increase employee retention, and give important recognition in the workplace. After all, happy employees are the heart of a healthy organization.
Follow the trends: Check out our report on what the last two years can tell us about the current state of employee experience and the future of how leaders and companies can shape it.
Equip HR and managers with tools to engage, recognize, and drive performance.