Talent Development Leader

The Ins and Outs of Employee Engagement

Monday, July 24, 2023

In the years leading up to the pandemic, employee engagement seemed to be on the rise; however, after trending upward for nearly a decade, employee engagement dropped from 36 percent to 32 percent in 2022, according to Gallup in “US Employee Engagement Needs a Rebound in 2023.” In addition, Gallup’s report, State of the Global Workplace 2023: The Voice of the World's Employees, reveals that nearly one-fifth (18 percent) of employees are actively disengaged. Unfortunately, research shows that disengaged workforces lead to poor financial outcomes—Gallup analysis calculates the cost to be $8.8 trillion in lost productivity.

6 in 10
organizations have increased efforts to boost employee engagement since early 2020. (ATD)

The increase in market cap per employee that correlated with each additional point of engagement employees reported. (Microsoft)

of employees at the least engaged organizations are unsure which tasks should command their focus. (Microsoft)

At highly engaged companies, employees are 40 percent more likely to have confidence that their feedback will lead to action. (Microsoft)

boost in productivity (sales) is what organizations with higher engagement experience. (Gallup)

The reduction in turnover that organizations with  high employee engagement experience (Gallup)

7 in 10
of companies use recognition programs to boost employee engagement or training or development activities. (ATD)

of companies use technology to improve engagement. (Randstad)

of businesses invest in talent intelligence platforms, and 56 percent invest in workplace culture, feedback, and engagement systems. (Randstad)
Sources: ATD, Employee Engagement and Burnout: Maintaining Morale in Changing Times, 2023; Gallup, State of the Global Workplace 2023, 2023; Microsoft WorkLab, The New Performance Equation in the Age of AI, 2023; Randstad Enterprise, 2023 Talent Trends Report

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About the Author

The Association for Talent Development (ATD) is a professional membership organization supporting those who develop the knowledge and skills of employees in organizations around the world. The ATD Staff, along with a worldwide network of volunteers work to empower professionals to develop talent in the workplace.

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