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)

$46,511
The increase in market cap per employee that correlated with each additional point of engagement employees reported. (Microsoft)

1/4
of employees at the least engaged organizations are unsure which tasks should command their focus. (Microsoft)

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

18%
boost in productivity (sales) is what organizations with higher engagement experience. (Gallup)

43%
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)

72%
of companies use technology to improve engagement. (Randstad)

57%
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

ATD Staff

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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