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2016 State ofEmployee EngagementA comprehensive look at employee engagement bestpractices from over 200 organizations around the world
The State of Employee EngagementEmployee engagement continues to be a top concern forexecutives around the world. We conducted this study tounderstand why engagement is important to companies and whatthey are doing to improve the level of engagement of theirworkforce.In the inaugural State of Employee Engagement report, we take adetailed look at: The importance of employee engagementHow organizations are measuring employee engagementWhat is working to improve employee engagementThe survey included 31 questions, including one open-endedquestion. The survey measured: Importance of Engagement Perceived outcomes of Engagement How Engagement is measured Engagement levels in organizationsState of Employee Engagement 20162
Who Took Our SurveyWe received 227 responses from around the world(163 US/Canada) from companies of all sizes. Most ofthe respondents are professionals in Human Resourceswho work as managers and above.
Company SizeOver 200 organizations represented (20 Industries).Over half of companies have 1,000 employees or more.2014 RevenueNumber of EmployeesLess than 1 million 1 million - 24 million2% 6%3%22%31% 100 million - 499million12%6%17% 25 million - 99million25-99100-4999%21%4%11%5,000-9,99927% 5 billion 500-9991,000-4,999 500 million - 999million 1 billion - 4.99 billion11%1-247%11%10,000 Don't KnowDon't KnowState of Employee Engagement 20164
Department and TitleMost respondents are HR managers and n ResourcesCustomer ServiceIndividual ContributorManagerSenior ManagerFinance/ProcurementITDirectorVice PresidentSenior Vice PresidentMarketing/Public RelationsOperationsC-level ExecutivePresident or CEOOtherSales/Business DevelopmentOtherState of Employee Engagement 20165
Perceptions ofEmployee EngagementThis section measured people’s understanding of theterm “employee engagement,” its importance, andperceived benefits to the organization.
Understanding of Employee Engagement88% of people report being Familiar or VeryFamiliar with the term “EmployeeEngagement.”How familiar are you with theterm “Employee Engagement?”2%Tweet this10%Not at all Familiar25%Somewhat FamiliarFamiliar63%Participants were asked toread the following definition:“Employee Engagement is anemotional state where wefeel passionate, energetic,and committed to our work.In turn, we fully invest ourbest selves—our hearts,spirits, minds, and hands—inthe work we do.“Very FamiliarHow familiar are you with theterm “EmployeeEngagement” according tothis and/or other definitionsyou are aware of?State of Employee Engagement 20167
Importance of Employee EngagementHR professionals report that only 29% ofmanagers consider employee engagementto be very important compared to 45% ofexecutives.Tweet thisBased on what they both say and do, howimportant is Employee Engagement to theexecutive team of your organization?How important is Employee Engagementto managers in your organization?2% 5%3% 5%21%29%28%45%27%35%Not at all ImportantSomewhat ImportantNot at all ImportantSomewhat ImportantImportantVery ImportantImportantVery ImportantDon’t KnowDon’t KnowState of Employee Engagement 20168
Benefits of Employee EngagementIn your opinion, in what ways does Employee Engagementbenefit organizations in general? Please rank up to 5 top benefits.BenefitScoreOverall RankIncreases employee performance13881Increases employee retention13082Increases employee satisfaction11193Increases customer satisfaction9094Improves quality6465Increases profitability6316Increases innovation5927Attracts talent to the company5758Improves company/brand image5009Decreases employee absence37110State of Employee Engagement 2016HR professionals nameIncreased Performance,Retention, and Satisfactionas the top benefits ofEmployee Engagement.Tweet this9
Employee EngagementProgramsWhat are organizations doing to improve employeeengagement? We asked about programs and initiativesthat are being used to increase employee engagement,their effectiveness, future plans, partnering withexternal providers, and expenditures.
Use of Formal Employee Engagement ProgramsDoes your organization have a formal program (or programs) currentlyin place specifically aimed at enhancing Employee Engagement?5%Yes40%No55%Don't KnowState of Employee Engagement 201611
Reasons for Not Having an Employee Engagement ProgramWhy does your organization not have any programs in placeto enhance Employee Engagement? (check all that apply)Other competing prioritiesCompanies without anemployee engagementprogram in place mentionother competing prioritiesand lack of executivesupport as the mainreasons.54Lack of support from senior executive team47Lack of knowledge about employee engagement38Lack of follow-throughTweet this37Lack of support from managers36Lack of funds/resources35A belief that Employee Engagement doesn'tmatter12Resistance from employees8Don't Know4010203040State of Employee Engagement 2016506012
Top Employee Engagement InitiativesWhat types of Employee Engagement-specificinitiatives has your organization implemented inthe past three years? Please mark all that apply.Employee Feedback65Company Events/Parties65Recognition Programs59Wellness Programs55Other Types of TrainingCompanies mention Employee Feedback Programs,Company Events, Recognition Programs, andWellness Programs as their top employeeengagement initiatives.Tweet thisOverall, how successful do you feelthese programs have been over thepast three years in increasingEmployee Engagement?36Training on EmployeeEngagement9% 3%33Telecommuting/Work from home24%25Additional Perks/Benefits14%21Other (please specify)50%8None3Don’t Know2010203040506070State of Employee Engagement 2016Don’t KnowNot SuccessfulSomewhat SuccessfulSuccessfulVery Successful13
Success of Employee Engagement ProgramsOverall, how successful do you feel these programs have beenover the past three years in increasing Employee Engagement?9%83% of companies reportthat their initiatives havebeen successful atincreasing employeeengagement.3%14%Tweet this24%50%Don’t KnowNot SuccessfulSomewhat SuccessfulSuccessfulVery SuccessfulState of Employee Engagement 201614
Future Employee Engagement PlansWhat types of Employee Engagement initiatives does yourorganization plan on implementing in the future? Pleasemark all that apply.Employee Feedback49Recognition Programs48Company Events/Parties36Training on Employee Engagement33Other Types of Training33Wellness Programs33Don’t KnowCompanies mentionEmployee Feedback andRecognition Programs asthe top two initiatives toimplement in the future.Tweet this22Additional Perks/Benefits18Telecommuting/Work from home16Other (please specify)6None60102030405060Only 6.2% of organizations do not plan to continue Employee Engagement initiatives.State of Employee Engagement 201615
Working with External Providers on EmployeeEngagementDo you work with outside providers to enhance Employee Engagement?Outside providers may include training companies, consultants, coaches,universities, survey companies, etc. (but not do-it-yourself softwaretools).14%34%YesNoDon’t know52%State of Employee Engagement 201616
Employee Engagement ExpendituresHow much money does your organization invest specificallyin Employee Engagement programs (including surveys)annually?High 300,500Average 64,620Companies reportspending about 65,000annually on employeeengagement programs.Tweet thisLow 0(7 responses)State of Employee Engagement 201617
MeasuringEmployee EngagementOrganizations have been using employee surveys tomeasure the level of employee engagement for anumber of years. We got down into the details to findout the frequency and consistency of surveying, surveymethods, participation rates, use of benchmarks, andthe average level of engagement.
Last Employee Engagement SurveyWhen was the most recent survey conducted tomeasure Employee Engagement in yourorganization? Was it in the past 13%YearAlmost half of allcompanies haveconducted an employeeengagement survey in thepast year.Tweet this2 years20%49%3 years or moreNeverDon't Know6%12%State of Employee Engagement 201619
Plans to Measure Employee EngagementOur organization plans to measure EmployeeEngagement through an employee survey for atleast the next 42% of companies plan toconduct an employeeengagement survey for atleast the next two years.Tweet this25%27%Year2 years3 years or moreWill not measure6%10%Don’t Know32%State of Employee Engagement 201620
History of Measuring Employee EngagementOver how many years has your organizationbeen measuring Employee Engagement using anemployee survey?60% of companies havebeen conducting anemployee engagementsurvey for three years ormore.14%16%Tweet this10%13%39%8%1 year2 years3 years4 years5 years or moreDon’t KnowState of Employee Engagement 201621
Frequency of Measuring Employee EngagementHow frequently does your organization conduct a formal employee survey orcollect employee feedback? (Multiple answers allowed. For example, if yourorganization conducts an annual employee survey followed by quarterly pulsesurveys, choose Quarterly and Annually.)Don't Know5More than every 2 years14Every 2 years17Every 18 monthsMost companies conductan employee engagementsurvey at least annually.6AnnuallyTweet this52Quarterly7Monthly3Weekly1Always On3010203040State of Employee Engagement 2016506022
Consistency of Measuring Employee Engagement41% of companies haveconsistently measuredemployee engagementeach year for at least thepast three years.Which statement best describes your organization?Tweet thisJUST STARTED: My organizationjust started measuring employeeengagement within the last twoyears.4%LESS CONSISTENT: Myorganization measures employeeengagement every 18 months to 2years.24%17%CONSISTENT: My organizationhas measured employeeengagement each year for at leastthe past three years.14%SPORADIC: My organization hasmeasured employee engagementsporadically over the past fiveyears.41%Don't KnowState of Employee Engagement 201623
Internal vs. Outsourced Employee Engagement SurveysFor your organization's most recent survey to measureemployee engagement, how did you administer thesurvey?5%8%25%Internally using softwaretoolOutsourced to a thirdparty survey company62% of companies workwith a third party toconduct their employeeengagement survey.Tweet thisOtherDon’t Know62%State of Employee Engagement 201624
Employee Feedback Collection MethodsWhat methods has your organization used tocollect employee feedback? (Mark all that apply)Online surveyOnline surveys are themost popular method tocollect employeefeedback, but papersurveys, focus groups, andpersonal interviews arealso popular methods.86Paper survey35Focus Groups34Personal InterviewsTweet this29Telephone survey2Other (specify)201020304050607080State of Employee Engagement 20169010025
Average Employee Engagement Survey ParticipationWhat percentage of your employeesprovided feedback to your most recentemployee survey?25%Did not ParticipateParticipated75%On average, 75% ofemployees participated intheir company’s employeeengagement survey.Tweet thisState of Employee Engagement 201626
Use of Employee Engagement BenchmarksDo you compare your engagement scores to anoverall benchmark or to others in your industry?(benchmarking)14%Yes52%NoJust over half (52%) ofcompanies compare theiremployee engagementsurvey results to anindustry benchmark.Tweet thisDon't Know34%State of Employee Engagement 201627
Average Level of Employee EngagementAccording to your most recent survey results, what percentage ofemployees are engaged at your company? This includesemployees you consider to be fully engaged, engaged, orsomewhat engaged.34%Not EngagedEngagedCompanies report thatmost (66%) of theiremployees are engagedaccording to their mostrecent employeeengagement survey results.Tweet this66%State of Employee Engagement 201628
Companies with Engagement Trending UpwardBased on any employee survey results over the past 3 years, hasthe overall level of Employee Engagement in your organizationtrended .23%32%UpwardStayed the SameDownwardDon’t know17%32% of companies reportthat engagement in theirorganization has increasedover the past three years.28% report engagementhas stayed the same and17% say that it has actuallygone down.Tweet this28%State of Employee Engagement 201629
Use ofEmployee EngagementSurvey ResultsConducting a survey is just the beginning of a process.This section highlights what happens after the resultsare tallied. We asked about how broadly results areshared, who conducts action plans using the results,and if training is provided on employee engagement.
Sharing of Employee Engagement ResultsWhich groups receive the results of the survey (summaryor detailed results)? Please check all that apply.Executive TeamMost executives and HRstaff receive the resultsfrom the companyemployee engagementsurvey. Less so formanagers and allemployees.78HR75All Managers55Tweet thisSome Managers19All Employees53Some Employees7None of the above1Don’t Know3010203040506070State of Employee Engagement 2016809031
Involvement in Employee Engagement Survey ActionPlanningWho is involved in action planning based on thesurvey results? Please check all that apply.HR team76Executive team71All managersCompanies report thatmanagers and employeesare much less involved inaction planning onemployee engagementsurvey results than HR andthe executive team.34Some managers32All employees19Tweet thisOther5No action plans are created2Don’t know20102030405060State of Employee Engagement 2016708032
Creation of Employee Engagement Survey Action PlansWhat percent of the following groups actually create an action HRManagersState of Employee Engagement 201633
Training on Employee EngagementWhich of the following groups have received training on Employee Engagement in yourorganization? By training, we mean a formal session on what employee engagement is and how toincrease it in the organization. Please check all that apply.None37HR team34Executive TeamMost companies reportthat they do not providetraining on employeeengagement.29All managers20Some managersTweet this15Some employees11All employees6Don’t Know160510152025State of Employee Engagement 201630354034
The ROI ofEmployee EngagementDoes employee engagement really work? We askedabout the return on investment from employeeengagement initiatives and other impacts it has on theorganization.
Measuring the ROI of Employee EngagementDoes your organization measure its return on investment (ROI) for Employee Engagementprograms?9%23%YesNoDon’t knowOnly 9% of companiesmeasure the ROI of theiremployee engagementprograms.Tweet this68%State of Employee Engagement 201636
Business Metrics Compared to Employee EngagementWhich of the following metrics are compared to EmployeeEngagement scores in your company? Please check all that apply.Employee Retention41Performance Metrics33Customer SatisfactionMost companies compareemployee engagementsurvey scores to retentionnumbers followed by otherperformance metrics.29Profitability13Product/Service Quality Metrics13Other (Please specify)Tweet this2None24Don’t Know22051015202530State of Employee Engagement 201635404537
Observed ROI of Employee EngagementIn what ways have you seen a return on theorganization’s investment in Employee Engagement?Higher employee satisfaction35Higher employee retention31Higher performance25Increased customer satisfaction20Increased innovationCompanies report higherSatisfaction, Retention, andPerformance as a result oftheir investment inemployee engagement.19Improved companyimage18Improved quality17Increased profitability12Higher application ratesTweet this9Decreased employee absence7Other (specify):4None18Don’t Know320510152025State of Employee Engagement 201630354038
Belief in Employee Engagement ROIHow strongly do you agree with the following statement: “Our program(s)to improve Employee Engagement has (have) given us the ROI/results wehoped for.”6%9%38%20%Only 27% of companiesbelieve that their programsto improve employeeengagement haveproduced the ROI theyhoped for.Tweet this3%24%Strongly DisagreeDisagreeNeither Agree nor DisagreeAgreeStrongly AgreeDon’t Know/Not ApplicableState of Employee Engagement 201639
Comments about the Impact of Employee EngagementHow would you describe the impact of Employee Engagement on your organization overall?Positive“Huge impact!”“It’s a work in progress and we have a long way to go still.”“Very positive to our cultural goals.”“It is vital to providing quality care and fulfilling our mission in thecommunity, so we take it very seriously.”State of Employee Engagement 201640
Employee EngagementBest PracticesWhat are the best companies doing to improveemployee engagement? In this section we look atcompanies whose employee engagement scores aretrending upward over the past three years.
Companies with Engagement Trending UpwardBased on any employee survey results over the past 3 years, hasthe overall level of Employee Engagement in your organizationtrended .23%32%UpwardStayed the SameDownwardDon’t know17%32% of companies reportthat engagement in theirorganization has increasedover the past three years.28% report engagementhas stayed the same and17% say that it has actuallygone down.Tweet this28%State of Employee Engagement 201642
Companies with Engagement Trending Upward Are Concerned About Retention.How concerned is your organization about employee retention?2520Companies with upwardtrending levels ofemployee engagement areconcerned about retention.2120Tweet this1615101010954210Very ConcernedSomewhat ConcernedUpwardStayed the SameNot ConcernedDownwardState of Employee Engagement 201643
Companies with Engagement Trending Upward Have Engagement Programs.Does your organization have a formal program(or programs) currently in place specifically aimedat enhancing Employee Engagement?No10%90% of companies withupward trending levels ofemployee engagementreport that they have aformal program to enhanceemployee engagement.Tweet thisYes90%State of Employee Engagement 201644
Companies with Engagement Trending Upward Train on Employee Engagement.What types of Employee Engagement-specific initiatives has yourorganization implemented in the past three years? Please mark allthat apply.Companies with upwardtrending levels ofemployee engagementprovide training onemployee engagement,other training, andwellness programs morethan those with stagnant ordownward engagementtrends.4540353935Tweet this303128 282520222019151028 28141312951091040EmployeeFeedback Systems(i.e. surveys, etc.)Training onEmployeeEngagementOther Types ofTrainingUpwardWellness ProgramsStayed the rdState of Employee Engagement 201645
Companies with Engagement Trending Upward Have Measured Engagement for 3 or More Years.Over how many years has your organization been measuringEmployee Engagement using an employee survey?1 year11%2 years18%5 years or more47%71% of companies withupward trending levels ofemployee engagementhave conducted anemployee survey for threeyears or more.Tweet this3 years11%4 years13%State of Employee Engagement 201646
Companies with Engagement Trending Upward Measure Engagement Annually.How frequently does your organization conduct a formal employee surveyor collect employee feedback? (Multiple answers allowed. For example, ifyour organization conducts an annual employee survey followed byquarterly pulse surveys, choose Quarterly and Annually.)More than every 2 years3Every 2 years7Every 18 months24Most companies withupward trending levels ofemployee engagementconduct annual employeesurveys25303AnnuallyQuarterlyTweet this5Monthly1Weekly0Always On105101520State of Employee Engagement 201647
Companies with Engagement Trending Upward Measure Engagement Consistently.Which statement best describes your organization?45% of companies withupward trending levels ofemployee engagementhave measuredengagement consistentlyeach year for at least thepast three years.10%27%18%Tweet thisJUST STARTED: My organization just started measuringemployee engagement within the last two years.CONSISTENT: My organization has measured employeeengagement each year for at least the past three years.45%LESS CONSISTENT: My organization measures employeeengagement every 18 months to 2 years.SPORADIC: My organization has measured employeeengagement sporadically over the past five years.State of Employee Engagement 201648
Companies with Engagement Trending Upward Use Benchmarks.Do you compare your engagement scores to an overall benchmarkor to others in your industry? (benchmarking)35Most companies withupward trending levels ofemployee engagementcompare their scores toindustry benchmarks.302925Tweet this20191516101110750UpwardStayed the SameYesDownwardNoState of Employee Engagement 201649
Companies with Engagement Trending Upward Share Employee Survey Results.Which groups receive the results of the survey (summary ordetailed results)? Please check all that apply.35Companies with upwardtrending levels ofemployee engagementshare employee surveyresults more broadlythroughout theorganization.3330302825262625Tweet this20191516191710121155652220HRExecutive TeamAll ManagersUpwardSome ManagersStayed the SameAll EmployeesSome EmployeesDownwardState of Employee Engagement 201650
Companies with Engagement Trending Upward Involve Managers in Action Planning.Who is involved in action planning based on the survey results?Please check all that apply.35303129Companies with upwardtrending levels ofengagement involvemanagers in actionplanning on employeesurvey results.252423202119Tweet this151612101199995530Executive teamHR teamUpwardAll managersStayed the SameSome managersAll employeesDownwardState of Employee Engagement 201651
Companies with Engagement Trending Upward Train Managers on Employee Engagement.Which of the following groups have received training on EmployeeEngagement in your organization? By training, we mean a formalsession on what employee engagement is and how to increase it inthe organization. Please check all that apply.302526Companies with upwardtrending levels ofemployee engagementprovide training onengagement to theirmanagers.25Tweet this20151514101312118975755453335440Executive TeamHR teamAll managersUpwardSome managersStayed the SameAll employeesDownwardState of Employee Engagement 2016Some employees We don’t train onEmployeeEngagement52
Companies with Engagement Trending Upward Tend to Work with Outside Partners.Do you work with outside providers to enhance EmployeeEngagement? Outside providers may include training companies,consultants, coaches, universities, survey companies, etc. (but notdo-it-yourself software tools).252022Companies with upwardtrending levels ofemployee engagementtend to work with outsidepartners to enhanceemployee engagement.Tweet this1915151410101050UpwardStayed the SameYesDownwardNoState of Employee Engagement 201653
Companies with Engagement Trending Upward Report Higher Retention and Performance.In what ways have you seen a return on the organization’sinvestment in Employee Engagement?Companies with upwardtrending levels ofemployee engagementreport higher retention andperformance.161415Tweet this1212111098898998769876654555420Higher company/brand product/serviceimagequalityUpwardStayed the ctionIncreasedinnovation withinthe companyDownwardState of Employee Engagement 201654
Key Findings from this ResearchThis study provides several insights and actionable take-aways for HR professionals:1.Consistently measure employee engagement. Most companies with rising levels ofemployee engagement have measured it at least every year for the past three yearsor more. Commit to measuring employee engagement regularly to check progress.2.Involve all managers in action planning. When managers are involved in actionplanning on employee engagement survey results, companies see the overall levelof engagement increase. Get the data into the hands of your managers.3.Provide training. Training on employee engagement, and training in general, weretwo commonalities among companies with rising levels of engagement. Investingin the development of your managers and employees pays off in increasedengagement.4.Measure ROI: Companies that compare their engagement efforts to retention andother performance metrics do better at increasing engagement overall.5.Work with an outside provider. Companies with rising levels of engagement tend topartner with service providers. If your employee engagement program has stalled,you may benefit from the expertise of engagement professionals.State of Employee Engagement 201655
We Turn Feedback into Results.DecisionWise conducts employee engagement surveys in over 70 countriesand 30 languages.We start by understanding your organization andwhat you need to measure. What is the currentculture? What's most important to yourorganization right now, and in the future?We understand what matters most to yoursuccess. Our survey experts customize anemployee engagement survey based on thoseneeds, and confidentially collect feedback fromyour employees.We partner with you to analyze and interpret theresults. But it doesn't end there. Ourcomprehensive action planning process helpsensure that employee survey data is turned intoaction and results.State of Employee Engagement 201656
We Wrote the Book on Employee EngagementMAGIC: Five Keys to Unlock the Power of Employee EngagementEmployees and leaders intuitively know that when we find a place where we canthrow our hearts, spirits, minds, and hands into our work, we are happier, healthier,and produce better results. Yet, most struggle to understand exactly why weengage in some environments, and don’t in others. MAGIC introduces the fiveMAGIC keys of employee engagement—Meaning, Autonomy, Growth, Impact, andConnection—and shows how leaders can help employees achieve higher levels ofengagement, as well as how employees can be more successful by takingownership for their own MAGIC.The ResearchBased on over 14 million employee survey responses across 70 countries—the mostextensive employee engagement survey database of its kind—MAGIC combinesprinciples of psychology and motivation with solid business concepts. Written byinternationally recognized experts in leadership and employee engagement, Dr.Tracy Maylett and Dr. Paul Warner, MAGIC provides actionable advice that willreduce employee attrition, encourage initiative, drive growth and profit, andincrease personal engagement in one’s work.Engaging ContentIn this book, leaders and employees will find real-world case studies, exercises,assessments, thought-provoking questions, and suggestions that increaseengagement on the individual, manager, and organizational levels.State of Employee Engagement 201657
Contact us at:DecisionWise815 West 450 SouthSpringville, UT 84663 USALocal 1.801.515.6500Toll Free 1.800.830.8086info@decision-wise.comState of Employee Engagement 201658
Success of Employee Engagement Programs Overall, how successful do you feel these programs have been over the past three years in increasing Employee Engagement? 3% 14% 50% 24% 9% . Recognition Programs Employee Feedback Companies mention Employee Feedback and Recognition Programs as the top two initiatives to implement in the future.
