52 employee engagement statistics for the modern workplace

The correlation between employee engagement and organizational success is strong: One Gallup study found that businesses with high engagement are 23% more profitable and 14% more productive.

Given these clear benefits, it stands to reason that employee engagement should be a top priority for employers. However, the employee engagement rate in the U.S. has fallen to a shocking 31%, representing a 10-year low.

This isn’t due to a lack of effort, but rather a crisis point born out of inefficient processes, missed connection opportunities, and friction points in the modern, flexible working environment. In this article, we’ll explore the data-driven insights you need to shift from surviving the engagement crisis to engineering a high-performing, connected workforce.

Employee engagement trends define performance and profits across industries, borders, and time. In many ways, an organization’s ability to engage its employees effectively can determine whether or not they’re able to achieve their goals, both short- and long-term.

These must-know statistics offer valuable insights into the current state of employee engagement and why it’s important to foster a healthy work culture that yields higher engagement rates.

1. Overall, U.S. workforce engagement is at a 10-year low (31%). (Gallup)
2. Global employee engagement rates fell to 21% in 2024. (Gallup)
3. Full workplace engagement could add US$9.6 trillion to global productivity. (Gallup)

high-team-cohesion-bar-chart | A bar chart displaying the percentage of employees who experience team cohesion, broken down by generation.

With employee engagement data across industries showing historic lows, understanding the ins and outs of the issue has quickly become a necessity.

These statistics help show what facts are behind the recent drop in employee engagement rates and how organizations can adjust their strategies and communication to the new reality.

4. Manager conduct alone accounts for 70% of the variance in employee engagement rates. (Gallup)
5. 63% of managers report feeling burned out or ambivalent in their role. (The Grossman Group)
6. Just 27% of managers were engaged at work in 2024. (Gallup)
7. 72% of American employees experience work-related stress ranging from moderate to very high, primarily driven by heavy workloads, long hours, and insufficient compensation. (Aflac)
8. 74% of Gen Z employees and 66% of Millennial employees experience moderate or worse burnout. (Aflac)
9. Only 46% of employees clearly understand what’s expected of them in their role. (Gallup)
10. Under half of U.S. employees agree that their employers care about their mental health. (Aflac)
11. Just 39% of employees feel that someone else at work cares about them as a person. (Gallup)
12. Only 30% of employees strongly agree that somebody at their workplace encourages their growth and development. (Gallup)
13. Just 22% of Gen Z, 29% of Millennials, 19% of Gen X, and 14% of baby boomer employees experience high team cohesion. (Gartner)
14. 81.9% of employees agree that recognition improves their level of engagement. (Nectar)
15. Only about half (54%) of job seekers say employee recognition happens on a regular basis, despite nearly 100% of hiring managers recognizing its importance. (Express Employment Professionals)

Generally, companies with higher engagement rates outperform those with lower employee engagement. That’s because there are strong correlations between employee engagement and productivity, profitability, and other traditional measures of success.

These statistics demonstrate the tangible benefits of improving employee engagement — and why investing in the necessary technology and collaboration platforms is worthwhile. They also show the clear drawbacks associated with letting engagement fall by the wayside.

16. One Gallup report shows that investing in employee engagement yields comprehensive benefits, including but not limited to (Gallup):
    • 70% higher employee well-being
    • 23% higher profitability
    • 22% higher organizational citizenship
    • 18% higher sales performance 
    • 14% higher productivity
    • 10% higher customer loyalty and engagement
17. Employee engagement leads to a 22.5% increase in alignment, 20.6% improvement in employee retention, and 19.9% increase in customer focus. (Effectory)
18. Employees who strongly agree that they receive valuable feedback about their performance from their teams are five times more likely to be engaged. (Gallup)
19. Engaged employees are 31% more likely to go above and beyond in their work. (Gartner)
20. Employees who experience very clear communication from leadership are three times as happy in their roles compared to those who experience unclear communication from their leaders. (Staffbase)
21. Employees who agree that their organization has a very good or excellent employee recognition program are 2.5 times more likely to be engaged. (Gallup)
22. 91% of employees stated that receiving recognition motivates them to put in extra effort. (Achievers)
23. 45% of employees who are recognized regularly (on a monthly basis or more) report being very engaged at work. (Achievers)
24. 42% of senior leaders agree that employee recognition needs to be a central component of engagement and retention strategies. (Investopedia)
25. Companies that prioritize employee recognition report 21% greater productivity. (Achievers)
26. 28% of leaders and 34% of employees report a lack of engagement or inattentiveness from colleagues as a result of bad or ineffective communication. (Morning Consult Survey commissioned by Zoom)
27. Over 33% of leaders spend an hour or more a day resolving four issues related to bad collaboration, costing organizations an estimated $16,491 per year, per leader. (Morning Consult Survey commissioned by Zoom)
28. 93% of employers and 90% of employees agree that collaboration tools are crucial, and 53% believe that they help improve employee engagement and satisfaction. (Cisco)
29. 68% of employees who feel connected to their organization’s culture are less likely to have experienced burnout at work. (Gallup)

remote-and-hybrid-work-effect-on–white-collar-employee-engagement | A chart showing how many white collar, desk-based employees agree that remote and hybrid work are engagement drivers.

Contrary to what some may believe, data shows that the emergence of hybrid work, remote, or otherwise flexible work arrangements has had a positive impact on employee engagement for companies that have adapted adequately.

With flexible work emerging as a high-demand perk nearly as important as competitive pay and benefits, organizations that have made an active effort to build an ideal hybrid work environment are reaping the benefits of the shift.

30. 90% of leaders prefer a hybrid or remote working environment for themselves, validating it as a top-down preference. (Morning Consult Survey commissioned by Zoom)
31. Employees who work five days per week in the office report the lowest engagement rates compared to those with hybrid or fully remote working arrangements. (Qualtrics)
32. 75% of white-collar, desk-based workers agree that remote and hybrid work improves engagement. (DHR Global)
33. 86% of employees agree that flexible work makes them happier employees. (Morning Consult Survey commissioned by Zoom)
34. 84% of employees would be more likely to work for a company that offers remote or flexible work options. (Morning Consult Survey commissioned by Zoom)
35. 43% of employees view flexible work as a basic expectation rather than a perk. (Morning Consult Survey commissioned by Zoom)
36. 42% of employees believe that implementing work-from-home options would help address recent spikes in burnout. (Aflac)
37. Remote employees are the most likely to report being engaged (33%), followed closely by hybrid employees (32%). (Gallup)
38. Hybrid workers are the most likely to say they are thriving (54%). (Gallup)
39. 71% of leaders see a positive impact on employee happiness and satisfaction due to hybrid and remote work options. (Morning Consult survey commissioned by Zoom)
40. 76% of hybrid employees believe that hybrid work has improved their work-life balance, while 61% report less burnout or fatigue. (Gallup)
41. Hybrid employees are the most likely to feel connected to their company and coworkers. (Zoom)

These workforce engagement statistics show the strong correlation between employee engagement and employee retention. Studies reveal that employees are actively seeking out companies that have strong engagement-related policies and initiatives.

42. Highly engaged employees turn over 51% less in low-turnover organizations, and 21% less in high-turnover organizations. (Gallup)
43. 73% of Gen Zers and 70% of Millennials desire a job or career change. (Talker Research)
44. Engaged employees are 31% more likely to stay at their organization. (Gartner)
45. 63% of employees actively considering leaving their jobs mention poor internal communication as one of the reasons. (Staffbase)

workers-excited-by-ai | A chart displaying the difference in excitement about AI between leaders and employees.

Possibly the biggest disruptor in employee engagement trends over the past few years has been the emergence of AI. By implementing AI assistants like Zoom AI Companion in their workflows, companies are giving employees smart tools to help them produce their best work.

Leaders are mostly convinced about AI’s benefits. However, employees are more skeptical, citing concerns about job security. This highlights a need for careful change management, transparent multi-channel communication, and clear assurances when implementing AI for employee engagement.

46. 82% of leaders are excited about AI, compared to only 57% of employees. (Morning Consult survey commissioned by Zoom)
47. 75% of leaders whose teams use AI say their teams collaborate better. (Morning Consult survey commissioned by Zoom)
48. Leaders using AI report strong results: 85% complete tasks faster, 84% are more productive, and 81% deliver higher quality work. (Morning Consult survey commissioned by Zoom)
49. 53% of engaged employees report being comfortable with AI, compared to only 30% of disengaged employees. (Qualtrics)
50. 70% of white-collar, desk-based workers agree that generative AI increases their engagement, but 51% worry about the potential threat it poses to their job security. (DHR Global)
51. 75% of human resources professionals agreed that employee engagement improved following the implementation of AI. (OpenAI)
52. Companies with effective employee appreciation initiatives report 31% lower voluntary turnover rates. (SHRM)

Implementing an employee engagement initiative is no easy feat. Many organizations are working diligently to keep their talent engaged and on board, yet engagement rates have consistently fallen to today’s 10-year low.

With that said, building a successful employee engagement initiative is far from impossible. The right tools can help. With platforms like Workvivo, you can support your organization’s efforts to strengthen collaboration, connection, recognition, and retention all in one platform.

Learn how Workvivo and Zoom’s broader suite of collaboration tools can help you build a company culture that sticks, get people engaged with their work, and make people want to stay for the long haul.