10 Employee Engagement Statistics You Need to Know in 2026

To get a better understanding of the current state of employee engagement, we laid out some statistics for those who love numbers.

Employee engagement is the key to building a successful business. But driving employee engagement doesn’t come easy: worldwide, only 20% of employees are engaged with their work. So what went wrong?

Many organisations struggle to identify the root causes of disengagement — whether it’s poor communication, lack of recognition, or limited growth opportunities. That’s why many HR teams now turn to data and insights from the top employee engagement survey companies to better understand what employees actually need.

Before diving deep into numbers, let’s take a look at the definition of employee engagement and its importance in the workplace.

What Is Employee Engagement?

In today’s fast-changing business environment, retaining top talent is a top challenge for most businesses.

According to research of more than 600 US businesses with 50-500 employees, 63.3% of companies say retaining employees is harder than hiring them. More recent research shows retention pressures are still rising, with many organizations shifting their HR focus from recruitment to engagement and employee experience. :contentReference[oaicite:0]{index=0}

To understand why employees stay—or leave—many HR teams now rely on insights from the top employee engagement survey companies, which help identify issues such as poor leadership communication, lack of recognition, or limited career development.

You’re probably familiar with the “war for talent” concept. Basically, it means that because of the shortage of skills businesses are currently facing and employees’ expectations (they don’t just look at the benefits, they also take into account the company’s values and the development opportunities you offer), it became more challenging for businesses to retain top talent.

Today, nearly 4 in 10 employees say they are considering changing jobs within the next 12 months. As a result, replacing employees remains a costly challenge for organizations. In fact, the average cost of replacing an employee can reach up to 1.5–2 times their annual salary when recruitment, onboarding, and lost productivity are taken into account. Ouch!

This constant churn puts pressure on HR leaders to understand why employees disengage in the first place. Increasingly, organisations rely on insights from the top employee engagement survey companies to uncover patterns in feedback, identify leadership gaps, and pinpoint what actually drives retention.

So, what does it take to retain top talent?

In a nutshell, if you want to stay on top of your game and win the “war for talent”, you’ll need to develop an effective employee engagement strategy.

But investing in employee engagement doesn’t mean making your employees happy. Indeed, employee engagement does not mean employee happiness or employee satisfaction. All these concepts are connected, but they are not synonyms!

Think about it: even though your employees are happy with the employee benefits you offer or the work environment, that doesn’t necessarily mean they are engaged with their jobs.

Not all experts and research companies have the same definition of employee engagement. For example:

Quantum Workplace defines employee engagement as “the strength of the mental and emotional connection employees feel toward their places of work”.

According to Gallup, engaged employees are “those who are involved in, enthusiastic about, and committed to their work and workplace”.

According to Willis Towers Watson, employee engagement is “employees’ willingness and ability to contribute to company success”.

Aon defines employee engagement as “the level of an employee’s psychological investment in their organization.” (Aon Human Capital Insights)

So, what is employee engagement?

In essence, employee engagement is the emotional commitment the employee has to the organization.

When employees feel engaged, they care about the company and they do their best work to achieve the company’s goals. This commitment often shows up in everyday behaviours — taking initiative, collaborating with colleagues, and going the extra mile for customers.

When employees are engaged, their #1 objective is to contribute to the company’s success. Employee engagement is not about employee benefits or bonuses, it’s about being part of a successful business. To measure and strengthen that commitment, many organisations rely on insights from the top employee engagement survey companies, which help turn employee feedback into actionable improvements.

The Importance of Employee Engagement in the Workplace

As explained earlier, engaged employees do their best work to achieve the business’s goals and they are willing to go the extra mile to contribute to the business’s success.

Employee engagement has become one of the top priorities for most businesses and here’s why:

• Employee engagement increases productivity in the workplace. Engaged employees outperform their peers that are not engaged. Overall, companies with high employee engagement are 21% more profitable.
• Employee engagement improves morale in the workplace. When employees feel heard and valued, collaboration improves and teams are more resilient during periods of change.
• Employee engagement reduces absenteeism. In fact, a Gallup study shows that highly engaged workplaces saw 41% lower absenteeism.
• Engaged employees provide a better customer service. Employees who feel connected to their work are more likely to create positive customer experiences.
• Low employee engagement is a costly problem! It costs businesses $4,700 on average to hire new talent, and around $986 to onboard the new hire. That means you lose almost $6,000 each time an employee walks out the door, not to mention the unquantifiable cost of losing an experienced employee!

Many HR teams now rely on insights from the top employee engagement survey companies to track sentiment, identify disengagement early, and turn employee feedback into practical improvements.

Engaged employees are more efficient and productive. But the majority of the workplace around the world isn’t engaged, and this has serious repercussions for business success!

Therefore, understanding the numbers behind employee engagement is crucial for improving employee engagement initiatives and tactics.

We laid down the most important employee engagement statistics for you to chew on (and remember to scroll all the way down to the bottom of this page to check out the infographic we made with these employee engagement stats 😊).

8 Employee Engagement Statistics You Need to Know

There are hundreds of interesting statistics on employee engagement.

To make things easier for you, we’ve picked top 8 stats you should definitively know about if you want to create an engaging company culture.

These numbers highlight the real drivers behind motivation, productivity, and retention—and why many HR leaders increasingly rely on insights from the top employee engagement survey companies to understand what employees actually experience at work.

Are you ready? Let’s dive in!

1. 85% of Employees Are Not Engaged in the Workplace

According to Gallup’s State of the Global Workplace, only 15 percent of employees are engaged in the workplace.

This means that the majority of the workforce around the world are either viewing their workplace negatively or only doing the bare minimum to make it through the day, with little to no emotional attachment.

The study also reveals remarkable geographical differences – 33 percent of U.S employees are engaged at work – almost two times more than the global average.

On the other hand, in Western Europe, only 10 percent of employees are engaged at work. The situation looks especially alarming in the U.K, where the amount of engaged employees is as low as 8 percent — and the number has been in steady decline for the past few years.

For many organizations, these numbers highlight the need for better ways to capture honest employee feedback and act on it. This is one reason HR leaders increasingly partner with the top employee engagement survey companies to measure sentiment, identify disengagement early, and uncover the workplace factors that truly influence engagement.

2. 73% of Employees Are Considering Leaving Their Jobs

According to a recent McKinsey workforce study, a large share of employees say they would consider leaving their current job if a better opportunity came along.

Changing jobs isn’t all about the money, either. Research from Gallup shows that factors such as purpose, career development, and workplace culture play a major role in whether employees stay or leave. Many workers say they would even accept lower compensation if it meant finding more meaningful work or a healthier environment.

In other words, factors such as meaningful work, supportive leadership, and a healthy culture often matter more than salary alone. This is why many organizations work with the top employee engagement survey companies to better understand what motivates employees — and what might push them to leave.

In order to stay on the job, employees need to have strong relationships with their colleagues and a work environment that supports work-life balance and wellbeing.

Research also shows that turnover can be contagious: when employees see coworkers leaving, they are more likely to consider leaving themselves, creating a domino effect that organizations need to manage carefully.

3. Low Employee Engagement Costs Companies $450-500 Billion Each Year

According to Gallup’s latest State of the Global Workplace research, disengaged employees cost the global economy an estimated $8.8 trillion in lost productivity each year.

Disengaged workers take less responsibility and ownership of their attitude, behavior, and motivation, and drain overall productivity. Over time, this can also impact team morale, increase turnover, and reduce the quality of customer service.

Research consistently shows that organizations with highly engaged employees experience stronger performance and retention. Increasingly, organizations rely on insights from the top employee engagement survey companies to track sentiment in real time and identify early warning signs of disengagement.

It is also important to connect the employees’ job to organizational missions, provide recognition and encourage collaboration. When employees clearly understand how their work contributes to broader goals, they are far more likely to stay motivated and committed.

4. Companies with Highly Engaged Workforce Are 21% More Profitable

Employee engagement isn’t just about soft, intangible and feelings-based reviews about employee well-being.

Employee engagement has a very real impact on business success, and employee engagement should be considered a part of a business strategy.

According to Gallup’s latest State of the Global Workplace research, teams with high employee engagement are significantly more productive and profitable than disengaged teams. Gallup’s long-running meta-analysis shows that highly engaged teams experience 21 percent higher profitability and 17 percent higher productivity compared to teams with low engagement.

Successful organizations focus on employee engagement by ensuring all employees have the best knowledge and tools available to perform their jobs as well as possible. Increasingly, HR teams use insights from the top employee engagement survey companies to track sentiment, measure engagement drivers, and identify areas where managers need better support.

Managers in successful organizations also make sure all employees know what is expected of them, and support their employees’ professional development.

Effective communication leads to more productive employees and through this, to a more profitable workplace.

However, communication gaps remain a major issue in many organizations. Recent workplace research shows that employees frequently cite poor leadership communication as a key barrier to engagement and trust. What’s more, trust in leadership remains fragile: according to the Edelman Trust Barometer, many employees still question whether business leaders communicate transparently and act in the best interests of their workforce. That’s pretty alarming, isn’t it?

📹 If you are looking to boost your employees’ engagement with better employee communications, check out our Masterclass about how to create an internal comms strategy.

5. Good Company Culture Increases Revenue by 4X

Research consistently shows that organizations with strong workplace cultures outperform their peers financially. Studies examining long-term company performance have found that businesses with strong, people-focused cultures significantly outperform companies with weaker cultures in terms of revenue growth and long-term performance.

In a long-term study on corporate culture, companies that invested heavily in leadership development and employee engagement dramatically outperformed competitors in revenue growth over time.

Company culture and employee engagement go hand in hand and a business focusing on employee engagement and improving their company will enjoy the benefits of increased revenue, increased productivity and increased employee engagement. Many organizations use insights from the top employee engagement survey companies to better understand how culture influences engagement, leadership trust, and retention.

Workplace culture also plays a major role in retention. Research shows that a significant share of employees looking for a new job cite company culture as one of the main reasons for wanting to leave. If you want to improve both employee retention and profitability, improving company culture should be one of your business priorities.

6. 1 in 3 Professionals Cite Boredom as Their Main Reason to Leave Their Jobs

According to a recent Microsoft Work Trend Index, many employees say a lack of career growth, meaningful work, and new challenges are among the top reasons they consider leaving their jobs.

The second most common reason was the fact that the work culture didn’t fit the employee or their values, with 24 percent choosing this as their main reason. The quest for a larger salary came fourth, with only 19 percent choosing it as their main reason for leaving.

Making sure employees have enough challenges and variation in their workday is one of the most important managerial tasks. Without the ability to develop themselves and learn, employees lose motivation and start to look elsewhere for a job.

This is why many organizations regularly gather feedback through tools offered by the top employee engagement survey companies, helping leaders identify when employees feel stuck, underutilized, or disconnected from their work.

Personal development is naturally good for the company as well, and as employees develop their skills and competencies, their work product becomes more refined and the company becomes more profitable.

7. 37% of Employees Consider Recognition the Most Important

According to research from Gallup, recognition is one of the most powerful drivers of employee engagement. Employees who feel their work is regularly acknowledged are far more likely to stay motivated and committed to their organization.

Recognition also ranks higher than many traditional incentives when employees are asked what helps them succeed at work. Feeling valued and appreciated by managers and peers often has a greater impact on engagement than compensation or promotions alone.

Taking employees for granted is a surefire way to drop down the levels of employee engagement.

Instead, you need to make sure that your employees feel heard and valued. Recognition leads to increased motivation, a sense of pride, and increased self-confidence at work, which in turn increases employee initiative and taking responsibility for one’s own work product.

Organizations often use insights from the top employee engagement survey companies to better understand whether employees feel appreciated and to identify gaps in recognition practices across teams and departments.

Research consistently shows that employees who receive meaningful recognition are significantly more engaged at work than those who rarely receive feedback or appreciation.

A company that actively recognizes and rewards its employees is more likely to see increased levels of accountability, responsibility, and leadership initiatives.

💡Now that we’re on the subject, be sure to check out this article as well: Top 15 Employee Motivation Tips and Benefits.

8. Only 29% of Employees Are Happy with Career Advancement Opportunities

According to recent SHRM workforce research, career advancement opportunities remain one of the most important factors influencing employee satisfaction and retention.

However, many employees still feel their organizations do not provide clear paths for professional growth. This gap between expectations and reality often leads employees to seek opportunities elsewhere.

Research also shows that learning and development opportunities play a major role in engagement and retention, particularly among younger workers who prioritize skill development and long-term career mobility.

The chance for professional development on the job is especially important to the younger generations. According to a Gallup workplace study, younger employees consistently rank development opportunities and meaningful career progression among the most important factors when evaluating a job.

The importance of professional development to employee engagement is undeniable, and managers and HR personnel need to provide tools and resources to support their employees’ professional development. Many organizations also rely on insights from the top employee engagement survey companies to understand whether employees feel they have clear growth paths, mentorship opportunities, and the support needed to progress internally rather than seek advancement elsewhere.

9. 85% of employees take more initiative when they receive feedback in the workplace

According to Gallup workplace research, employees who receive regular feedback from their managers are significantly more engaged and more likely to perform at a high level.

• Employees who receive meaningful feedback are more likely to take initiative in their work.
• Teams with strong feedback cultures tend to collaborate more effectively.
• Employees who feel heard are more invested in their work and their organization’s success.

These findings highlight how regular feedback can directly influence motivation, collaboration, and ownership at work. Organizations that actively collect and act on employee input tend to build stronger, more engaged teams.

Managers should always follow the best employee feedback practices to drive higher engagement in the workplace. Feedback must be timely, relevant, and constructive. Many companies now rely on tools provided by the top employee engagement survey companies to gather continuous feedback and identify trends across teams.

Also, leaders must encourage bottom-up feedback as well, ensuring employees feel safe sharing honest opinions and suggestions for improvement.

10. Diverse and inclusive organizations work 12% harder, are 19% more likely to stay longer with the organization and collaborate 57% more effectively with peers

Diversity and inclusion initiatives help employees develop a sense of belonging. Furthermore, they improve trust in the workplace and the overall employee experience.

Organizations that actively promote inclusion often see higher engagement because employees feel respected, heard, and able to contribute authentically. Many HR teams now use insights from the top employee engagement survey companies to measure how inclusive their culture truly feels and to identify gaps across departments or leadership levels.

As nicely put by one of the DEI experts:

One of the most important ways to show employees that you respect their backgrounds and traditions is to invite them to share those characteristics of their cultures in the workplace…it is the inclusion that connects people to the business, and we believe it’s one of the core reasons they stay-because they have been able to find their place where they belong. Belonging goes beyond DEI; it is essential in optimizing employee engagement and commitment.

Employee Engagement Stats [Infograhic]

The Impact of Remote and Hybrid Work On Employee Engagement

In the past few years, many employees had to adopt new ways of working and cope with sudden new work arrangements in no time. They had to cope with information overload, making it challenging for them to spot real and fake news. They also got concerned about their health and jobs as the number of layoffs skyrocketed during the pandemic.

At the same time, managers had to rethink how they communicate, support collaboration, and maintain a strong sense of connection across distributed teams. Many organizations now rely on insights from the top employee engagement survey companies to understand how remote and hybrid setups influence engagement, communication, and employee wellbeing.

However, many employees prefer flexible ways of work as they help them have a better work-life balance, and boost their morale and motivation.

💡Read on: Remote Work: 20 Ways to Engage and Connect with Your Remote Employees

Here are a few key employee engagement statistics related to remote and hybrid work:

• According to Gallup’s State of the Global Workplace research, employees working in hybrid arrangements often report higher engagement levels than those working fully on-site, largely due to improved flexibility and autonomy.
• According to the Microsoft Work Trend Index, many employees report that remote or hybrid work allows them to be more productive because they experience fewer interruptions and have greater control over how they structure their day.
• At the same time, remote work can blur the boundaries between work and personal life. Research from Gallup shows that employee burnout remains a major concern, especially when employees struggle to disconnect from work.
• One of the biggest challenges remote workers report is switching off after work hours. Studies on remote work habits consistently show that many employees find it difficult to fully unplug at the end of the workday.
• Collaboration preferences also vary. Some employees say they collaborate more effectively in person, while others prefer the flexibility and focus that remote collaboration tools provide.
• Research consistently shows that employees who feel satisfied and supported in their work environment are more productive and engaged, highlighting the importance of creating a strong employee experience regardless of where employees work.

The Role of Internal Communications in Employee Engagement

The very first thing you need to take a look at when it comes to improving employee engagement is your internal communication.

Indeed, your internal communication strategy is one of the key drivers of employee engagement.

When a company has a great internal communications strategy in place, employees feel more informed, secure and motivated to achieve the company’s goals.

What’s more, effective internal communications lower frustration in the workplace, which is strongly connected with employee engagement and employees’ ability to reach a flow state at work where they can stay focused and productive.

Think about it: the typical knowledge worker spends 2.5 hours a day searching for information. When key information is missing, employees need to look for it by themselves. They end up browsing their Intranets and G-Drives for hours and calling their colleagues for help.

This is why many organizations turn to insights from the top employee engagement survey companies to better understand how communication gaps affect engagement, collaboration, and productivity across teams.

At the end of the end, poor internal communication leads to employee frustration and lower productivity in the workplace. So, before you start planning your next employee engagement strategy, start with your internal communication!