Key takeaways:
  • What is employee engagement? Employee engagement refers to an employee’s commitment and passion for their organization’s goals and success, distinct from happiness or satisfaction.
  • Why is engagement important? Engaged employees contribute to higher productivity and profitability, with studies showing 21% higher profits and better customer engagement.
  • What cost does disengagement incur? Actively disengaged employees lead to a loss of $450 to $550 billion annually in the U.S. due to reduced productivity.
  • How many leaders have an engagement strategy? Only about 25% of business leaders have a strategic approach to managing employee engagement despite its importance.
  • What factors influence engagement? Factors such as job level, geography, gender, and company size significantly affect employee engagement and productivity, as revealed by Wrike’s survey.

Employee engagement is not the same as happiness or satisfaction. Engagement is the personal commitment an employee has to their organization’s goals and overall success. It’s the amount of passion they have for their work and their willingness to put forth effort. 

Engagement is a hot topic for many business leaders today. Why? Studies show that companies with engaged employees realize greater productivity and higher profits than those with less-engaged workers. For example: 

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  • Teams with high employee engagement have better customer engagement, greater productivity, better retention, and 21% higher profitability. (Source: Gallup)
  • A 10% increase in employee engagement investments can increase profits by $2,400 per employee per year. (Source: Palmer Morrel-Samuels at Workplace Research Foundation)
  • Companies with engaged employees outperform those without by 202%. (Source: Dale Carnegie)

On the flip side, actively disengaged employees cost the U.S. $450 to $550 billion per year in lost productivity. (Source: Gallup)

Despite the fact that studies have shown the connection between employee engagement and profits, many leaders still don’t know how to strategically bridge the gap. In fact, one study from Dale Carnegie reveals that only about 25% of business leaders have an employee engagement strategy at all. 

Profits, productivity, and your business are on the line, so our team at Wrike sought to better understand the connection between employee engagement and productivity. Wrike surveyed 5,000+ adults in the United States, United Kingdom, France, Germany, and Australia, who work full-time for an organization with more than 500 employees.

The infographic below illustrates what drives employee engagement and how engagement relates to productivity. Read our full survey report to dive deep into how job level, geography, gender, personality, company size, and more impact engagement and productivity so you can build an engagement strategy that grows your business.

Engagement Survey (Infographic) 1

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