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815 W 450 S, Springville, UT 84663 USA // +1.801.515.6500 // decision-wise.com
The State of Employee
EngagementA comprehensive look at employee
engagement best practices from over
200 organizations around the world
2 Agenda
1. Methodology
2. Demographics
3. Overall Findings
4. Insights
5. Best Practices
3 Methodology
ObjectivesUnderstand the importance of Employee EngagementUnderstand what organizations are doing to measure Employee EngagementUnderstand what is working to improve Employee Engagement
Survey Overview31 questions, including one open-ended questionSeven demographic questions227 responses from around the world (163 US/Canada)
Survey MeasuredUnderstanding of EngagementImportance of EngagementPerceived outcomes of EngagementHow Engagement is measuredEngagement levels in organizations
Statistical AnalysisDescriptive summaryCross tabComparisons
4 Company Size
Over 200 organizations represented (20+ Industries).Over half of companies have 1,000 employees or more.
3%
22%
12%
11%4%
11%
6%
31%
2014 Revenue
Less than $1 million
$1 million - $24 million
$25 million - $99 million
$100 million - $499 million
$500 million - $999 million
$1 billion - $4.99 billion
$5 billion+
Don't Know
6%7%
21%
11%27%
9%
17%2%
Number of Employees
1-24
25-99
100-499
500-999
1,000-4,999
5,000-9,999
10,000+
Don't Know
5
Most respondents are HR managers and above.
Department and Title
73%
2%2%2%3%
5%
4%9%
Human Resources Customer Service
Finance/Procurement IT
Marketing/Public Relations Operations
Sales/Business Development Other
18%
24%
11%
16%
6%
2%
5%
2%
16%
Individual Contributor Manager Senior Manager
Director Vice President Senior Vice President
C-level Executive President or CEO Other
6
How familiar are you with the term “Employee Engagement?”
Understanding of Employee Engagement
86% of people report being Familiar or Very Familiar with the term “Employee Engagement.”
2%10%
25%
63%
Not at all Familiar
Somewhat Familiar
Familiar
Very Familiar
Participants were asked to read the following definition:“Employee Engagement is an emotional state where we feel passionate, energetic, and committed to our work. In turn, we fully invest our best selves—our hearts, spirits, minds, and hands—in the work we do.“
How familiar are you with the term “Employee Engagement” according to this and/or other definitions you are aware of?
7
5%
28%
35%
29%
3%
Not at all Important Somewhat Important
Important Very Important
Don’t Know
How important is Employee Engagement to managers in your organization?
Importance of Employee Engagement
Based on what they both say and do, how important is Employee Engagement to the executive team of your organization?
5%
21%
27%
45%
2%
Not at all Important Somewhat Important
Important Very Important
Don’t Know
HR professionals report that only 29% of managers consider employee engagement to be very important compared to 45% of executives.
8 Benefits of Employee Engagement
In your opinion, in what ways does Employee Engagement benefit organizations in general? Please rank up to 5 top benefits.
Benefit Score Overall Rank
Increases employee performance 1388 1
Increases employee retention 1308 2
Increases employee satisfaction 1119 3
Increases customer satisfaction 909 4
Improves quality 646 5
Increases profitability 631 6
Increases innovation 592 7
Attracts talent to the company 575 8
Improves company/brand image 500 9
Decreases employee absence 371 10
HR professionals name Increased Performance, Retention, and Satisfaction as the top benefits of Employee Engagement.
9
55%
40%
5%
Yes
No
Don't Know
Use of Formal Employee Engagement Programs
Does your organization have a formal program (or programs) currently in place specifically aimed at enhancing Employee Engagement?
10 Reasons for Not Having an Employee Engagement Program
Why does your organization not have any programs in place to enhance Employee Engagement? (check all that apply)
4
8
12
35
36
37
38
47
54
0 10 20 30 40 50 60
Don't Know
Resistance from employees
A belief that Employee Engagement doesn'tmatter
Lack of funds/resources
Lack of support from managers
Lack of follow-through
Lack of knowledge about employee engagement
Lack of support from senior executive team
Other competing prioritiesCompanies without an employee engagement program in place mention other competing priorities and lack of executive support as the main reasons.
11 Top Employee Engagement Initiatives
What types of Employee Engagement-specific initiatives has your organization implemented in the past three years? Please mark all that apply.
2
3
8
21
25
33
36
55
59
65
65
0 10 20 30 40 50 60 70
Don’t Know
None
Other (please specify)
Additional Perks/Benefits
Telecommuting/Work from home
Training on EmployeeEngagement
Other Types of Training
Wellness Programs
Recognition Programs
Company Events/Parties
Employee Feedback
Companies mention Employee Feedback Programs, Company Events, Recognition Programs and Wellness Programs as their top employee engagement initiatives.
3%14%
50%
24%
9%
Don’t Know Not Successful
Somewhat Successful Successful
Very Successful
Overall, how successful do you feel these programs have been over the past three years in increasing Employee Engagement?
12
3%
14%
50%
24%
9%
Don’t Know Not Successful
Somewhat Successful Successful
Very Successful
Success of Employee Engagement Programs
Overall, how successful do you feel these programs have been over the past three years in increasing Employee Engagement?
83% of companies report that their initiatives have been successful at increasing employee engagement.
13 Future Employee Engagement Plans
What types of Employee Engagement initiatives does your organization plan on implementing in the future? Please mark all that apply.
Only 6.2% of organizations do not plan to continue Employee Engagement initiatives.
6
6
16
18
22
33
33
33
36
48
49
0 10 20 30 40 50 60
None
Other (please specify)
Telecommuting/Work from home
Additional Perks/Benefits
Don’t Know
Wellness Programs
Other Types of Training
Training on Employee Engagement
Company Events/Parties
Recognition Programs
Employee Feedback Companies mention Employee Feedback and Recognition Programs as the top two initiatives to implement in the future.
14
49%
12%
6%
20%
13%
Year
2 years
3 years or more
Never
Don't Know
Last Employee Engagement Survey
When was the most recent survey conducted to measure Employee Engagement in your organization? Was it in the past…
Almost half of all companies have conducted an employee engagement survey in the past year.
15
25%
10%
32%
6%
27%
Year
2 years
3 years or more
Will not measure
Don’t Know
Plans to Measure Employee Engagement
Our organization plans to measure Employee Engagement through an employee survey for at least the next…
42% of companies plan to conduct an employee engagement survey for at least the next two years.
16
14%
10%
13%
8%
39%
16%
1 year 2 years 3 years
4 years 5 years or more Don’t Know
History of Measuring Employee Engagement
Over how many years has your organization been measuring Employee Engagement using an employee survey?
60% of companies have been conducting an employee engagement survey for three years or more.
17 Frequency of Measuring Employee Engagement
How frequently does your organization conduct a formal employee survey or collect employee feedback? (Multiple answers allowed. For example, if your organization conducts an annual employee survey followed by quarterly pulse surveys, choose Quarterly and Annually.)
3
1
3
7
52
6
17
14
5
0 10 20 30 40 50 60
Always On
Weekly
Monthly
Quarterly
Annually
Every 18 months
Every 2 years
More than every 2 years
Don't Know
Most companies conduct an employee engagement survey at least annually.
18
24%
41%
14%
17%
4%
JUST STARTED: My organization just started measuring employee engagement within the last two years.
CONSISTENT: My organization has measured employee engagement each year for at least the past three years.
LESS CONSISTENT: My organization measures employee engagement every 18 months to 2 years.
SPORADIC: My organization has measured employee engagement sporadically over the past five years.
Don't Know
Consistency of Measuring Employee Engagement
Which statement best describes your organization?
41% of companies have consistently measured employee engagement each year for at least the past three years.
19
25%
62%
8%5%
Internally using software tool
Outsourced to a third-party survey company
Other
Don’t Know
Internal vs. Outsourced Employee Engagement Surveys
For your organization's most recent survey to measure employee engagement, how did you administer the survey?
62% of companies work with a third party to conduct their employee engagement survey
20 Employee Feedback Collection Methods
What methods has your organization used to collect employee feedback? (Mark all that apply)
2
2
29
34
35
86
0 10 20 30 40 50 60 70 80 90 100
Other (specify)
Telephone survey
Personal Interviews
Focus Groups
Paper survey
Online surveyOnline surveys are the most popular method to collect employee feedback, but paper surveys, focus groups, and personal interviews are also popular methods.
21 Average Employee Engagement Survey Participation
What percentage of your employees provided feedback to your most recent employee survey?
25%
75%
Did not Participate
Participated On average, 75% of employees participated in their company’s employee engagement survey.
22
52%
34%
14%
Yes
No
Don't Know
Use of Employee Engagement Benchmarks
Do you compare your engagement scores to an overall benchmark or to others in your industry? (benchmarking)
Just over half (52%) of companies compare their employee engagement survey results to an industry benchmark.
23 Average Level of Employee Engagement
According to your most recent survey results, what percentage of employees are engaged at your company? This includes employees you consider to be fully engaged, engaged, or somewhat engaged.
34%
66%
Not Engaged
Engaged
Companies report that most (66%) of their employees are engaged according to their most recent employee engagement survey results.
24
32%
28%
17%
23%
Upward
Stayed the Same
Downward
Don’t know
Companies with Engagement Trending Upward
Based on any employee survey results over the past 3 years, has the overall level of Employee Engagement in your organization trended….
32% of companies report that engagement in their organization has increased over the past three years. 28% report engagement has stayed the same and 17% say that it has actually gone down.
25 Sharing of Employee Engagement Results
Which groups receive the results of the survey (summary or detailed results)? Please check all that apply.
3
1
7
53
19
55
75
78
0 10 20 30 40 50 60 70 80 90
Don’t Know
None of the above
Some Employees
All Employees
Some Managers
All Managers
HR
Executive Team Most executives and HR staff receive the results from the company employee engagement survey. Less so for managers and all employees.
26 Involvement in Employee Engagement Survey Action Planning
Who is involved in action planning based on the survey results? Please check all that apply.
2
2
5
19
32
34
71
76
0 10 20 30 40 50 60 70 80
Don’t know
No action plans are created
Other
All employees
Some managers
All managers
Executive team
HR team
Companies report that managers and employees are much less involved in action planning on employee engagement survey results than HR and the executive team.
27 Creation of Employee Engagement Survey Action Plans
What percent of the following groups actually create an action plan?
72%68%
55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Executives HR Managers
28 Training on Employee Engagement
Which of the following groups have received training on Employee Engagement in your organization? By training, we mean a formal session on what employee engagement is and how to increase it in the organization. Please check all that apply.
16
6
11
15
20
29
34
37
0 5 10 15 20 25 30 35 40
Don’t Know
All employees
Some employees
Some managers
All managers
Executive Team
HR team
None
Most companies report that they do not provide training on employee engagement.
29 Business Metrics Compared to Employee Engagement
Which of the following metrics are compared to Employee Engagement scores in your company? Please check all that apply.
22
24
2
13
13
29
33
41
0 5 10 15 20 25 30 35 40 45
Don’t Know
None
Other (Please specify)
Product/Service Quality Metrics
Profitability
Customer Satisfaction
Performance Metrics
Employee Retention
Most companies compare employee engagement survey scores to retention numbers followed by other performance metrics.
30 Working with External Providers on Employee Engagement
Do 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 software tools).
34%
52%
14%
Yes
No
Don’t know
31 Employee Engagement Expenditures
How much money does your organization invest specifically in Employee Engagement programs (including surveys) annually?
Average$64,620
High$300,500
Low$0
(7 responses)
Companies report spending about $65,000 annually on employee engagement programs.
32
9%
68%
23%
Yes
No
Don’t know
Measuring the ROI of Employee Engagement
Does your organization measure its return on investment (ROI) for Employee Engagement programs?
Only 9% of companies measure the ROI of their employee engagement programs.
33 Observed ROI of Employee Engagement
In what ways have you seen a return on the organization’s investment in Employee Engagement?
32
18
4
7
9
12
17
18
19
20
25
31
35
0 5 10 15 20 25 30 35 40
Don’t Know
None
Other (specify):
Decreased employee absence
Higher application rates
Increased profitability
Improved quality
Improved companyimage
Increased innovation
Increased customer satisfaction
Higher performance
Higher employee retention
Higher employee satisfaction
Companies report higher Satisfaction, Retention, and Performance as a result of their investment in employee engagement.
34
6%
9%
20%
24%
3%
38%
Strongly Disagree Disagree Neither Agree nor Disagree
Agree Strongly Agree Don’t Know/Not Applicable
Belief in Employee Engagement ROI
How strongly do you agree with the following statement: “Our program(s) to improve Employee Engagement has (have) given us the ROI/results we hoped for.”
Only 27% of companies believe that their programs to improve employee engagement have produced the ROI they hoped for.
35 State of Employee Engagement Overall Findings
How would you describe the impact of Employee Engagement on your organization overall?
“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 the community, so we take it very seriously.”
Positive
36 Insights
37
32%
28%
17%
23%
Upward
Stayed the Same
Downward
Don’t know
Companies with Engagement Trending Upward
Based on any employee survey results over the past 3 years, has the overall level of Employee Engagement in your organization trended….
32% of companies report that engagement in their organization has increased over the past three years. 28% report engagement has stayed the same and 17% say that it has actually gone down.
38Companies with Engagement Trending Upward…
Have Engagement Programs.
Does your organization have a formal program (or programs) currently in place specifically aimed at enhancing Employee Engagement?
90% of companies with upward trending levels of employee engagement report that they have a formal program to enhance employee engagement.
Yes90%
No10%
39
39
2019
31
28 28
35
1213
22
28 28
14
9
4
910 10
0
5
10
15
20
25
30
35
40
45
EmployeeFeedback Systems(i.e. surveys, etc.)
Training onEmployee
Engagement
Other Types ofTraining
Wellness Programs RecognitionPrograms
CompanyEvents/Parties
Upward Stayed the Same Downward
Companies with Engagement Trending Upward…
Train on Employee Engagement.
What types of Employee Engagement-specific initiatives has your organization implemented in the past three years? Please mark all that apply.
Companies with upward trending levels of employee engagement provide training on employee engagement, other training, and wellness programs more than those with stagnant or downward engagement trends.
40Companies with Engagement Trending Upward…
Have Measured Engagement for 3 or More Years.
Over how many years has your organization been measuring Employee Engagement using an employee survey?
71% of companies with upward trending levels of employee engagement have conducted an employee survey for three years or more.
1 year
11%
2 years
18%
3 years
11%
4 years
13%
5 years or more47%
41
1
0
1
5
24
3
7
3
0 5 10 15 20 25 30
Always On
Weekly
Monthly
Quarterly
Annually
Every 18 months
Every 2 years
More than every 2 years
Companies with Engagement Trending Upward…
Measure Engagement Annually.
How frequently does your organization conduct a formal employee survey or collect employee feedback? (Multiple answers allowed. For example, if your organization conducts an annual employee survey followed by quarterly pulse surveys, choose Quarterly and Annually.)
Most companies with upward trending levels of employee engagement conduct annual employee surveys.
42
27%
45%
18%
10%
JUST 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.
LESS CONSISTENT: My organization measures employeeengagement every 18 months to 2 years.
SPORADIC: My organization has measured employeeengagement sporadically over the past five years.
Companies with Engagement Trending Upward…
Measure Engagement Consistently.
Which statement best describes your organization?
45% of companies with upward trending levels of employee engagement have measured engagement consistently each year for at least the past three years.
43
29
19
1110
16
7
0
5
10
15
20
25
30
35
Upward Stayed the Same Downward
Yes No
Companies with Engagement Trending Upward…
Use Benchmarks.
Do you compare your engagement scores to an overall benchmark or to others in your industry? (benchmarking)
Most companies with upward trending levels of employee engagement compare their scores to industry benchmarks.
44
30
33
26
5
25
2
28
26
19
6
19
2
1617
11
5
12
20
5
10
15
20
25
30
35
HR Executive Team All Managers Some Managers All Employees Some Employees
Upward Stayed the Same Downward
Companies with Engagement Trending Upward…
Share Employee Survey Results.
Which groups receive the results of the survey (summary or detailed results)? Please check all that apply.
Companies with upward trending levels of employee engagement share employee survey results more broadly throughout the organization.
45
29
31
21
9 9
2324
1211
9
16
19
5
9
3
0
5
10
15
20
25
30
35
Executive team HR team All managers Some managers All employees
Upward Stayed the Same Downward
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.
Companies with upward trending levels of engagement involve managers in action planning on employee survey results.
46
2625
1312
3
54
11
14
7
5
3
5
15
89
54
34
7
0
5
10
15
20
25
30
Executive Team HR team All managers Some managers All employees Some employees We don’t train on Employee
EngagementUpward Stayed the Same Downward
Companies with Engagement Trending Upward…
Train Managers on Employee Engagement.
Which of the following groups have received training on Employee Engagement in your organization? By training, we mean a formal session on what employee engagement is and how to increase it in the organization. Please check all that apply.
Companies with upward trending levels of employee engagement providing training on engagement to their managers.
47
22
14
10
15
19
10
0
5
10
15
20
25
Upward Stayed the Same Downward
Yes No
Companies with Engagement Trending Upward…
Tend to Work with Outside Partners.
Do 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 software tools). Companies with upward
trending levels of employee engagement tend to work with outside partners to enhance employee engagement.
48
15
12
8
9
5
11
9
8
9
7
9
6
9
5
8
7
6
5
4
5
8
0
2
4
6
8
10
12
14
16
Higher employeeretention
Higherperformance
Improvedcompany/brand
image
Improvedproduct/service
quality
Increasedprofitability
Increasedcustomer
satisfaction
Increasedinnovation within
the company
Upward Stayed the Same Downward
Companies with Engagement Trending Upward…
Report Higher Retention and Performance.
In what ways have you seen a return on the organization’s investment in Employee Engagement?
Companies with upward trending levels of employee engagement report higher retention and performance.
49
21
16
2
20
9
4
10 10
10
5
10
15
20
25
Very Concerned Somewhat Concerned Not Concerned
Upward Stayed the Same Downward
Companies with Engagement Trending Upward…
Are Concerned About Retention.
How concerned is your organization about employee retention?
Companies with upward trending levels of employee engagement are concerned about retention.
50 Key Findings
1. Consistently measure employee engagement
2. Involve all managers in action planning
3. Provide training
4. Measure ROI
5. Work with an outside provider
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