33 employee statistics you need to know in 2023
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Wed, Jun 22, '22
The modern workplace has undergone significant changes when it comes to how employees work and communicate.
Accelerated by the pandemic, a new generation of hybrid digital workers have emerged, requiring a different approach to employee management.
By understanding these updated work facts, organizations can:
- Better support virtual teams
- Retain top talent
- Reduce employee turnover
- Avoid employee burnout
- Actively engage employees
- Raise the level of employee productivity
To help you tackle these challenges head-on, we’ve compiled an employee statistics infographic to provide a clear overview of these work facts and work trends. Combining this information and the right intranet platform will help your organization better support and manage teams into the future.
A changing workforce
- Millennials currently make up about 50% of the workforce, but by 2030 millennials will be 75% of the workforce.
As Millennials and Gen Z enter the workforce in increasing numbers, organizations need to pay attention to the changing needs of their employees. What has worked for the previous generations does not necessarily apply to this one. Organizations who are aware of this shift and regularly listen to and meet the needs of their workforce will be rewarded with higher retention and loyalty.
- 92% of millennials say that recognition of their accomplishments by senior staff and colleagues is “very important” or “important”.
When it comes to their relationship with senior staff, millennials are more likely to seek feedback to feel a sense of connection with their managers. To say ‘You have potential, we value you at this company.’ is a great way of recognizing talent in your company. Providing feedback and recognition will help motivate employees by providing a greater sense of purpose in their role.
- 21% of millennials say they've changed jobs within the past year
Millennials have been labeled the ‘job-hopping’ generation. Six out of ten millennials state that they are open to new job opportunities, making this the most transient generation yet. Some may dismiss this as laziness, however research has shown that what separates this generation from the past is the desire for purpose over stability. When a millennial sees a better opportunity to love what they do, they are more likely to switch course. For employers that means employee engagement and retention strategies matter.
- Millennials are over 22x more likely to stay with a company that cultivates high levels of trust in the workplace
While millennials might be more open to opportunities, earning their trust results in high levels of engagement and employee retention. More than any other generation, millennials value a transparent company culture. Organizations who offer candid feedback and a bottom-up internal communication structure will find themselves attracting the right talent.
- By 2028, the study projects that 73% of all teams will have remote workers.
It’s safe to say that remote work is here to stay. As younger generations rise through the ranks, support for remote work has become the norm. The pandemic prompted digital platforms like Google Workspace to up their game and provide more comprehensive collaboration solutions. This has created new opportunities for a more flexible approach to the typical 9 to 5 job, and continues to enable teams to restructure themselves into the future.
- 99% of remote workers would like to continue doing so to some extent
While jarring, the pandemic gave employees something they’d been waiting for: flexibility. By far, this is the biggest benefit most people cite when asked about remote work. Flexibility in both location and schedule has widened the horizons for many workers. However it’s not without its challenges. Managing remote teams requires employers to meet the needs of their offsite employees in new ways to ensure culture and communication is still prioritised.
- 75% of virtual teams worldwide say that remote collaboration allowed them to be more effective in their jobs.
By giving employees the flexibility to shape their own schedule, they can work in a way that suits them. This results in employees that are more motivated and effective in their role. Remote working solutions are key to not only managing communication and collaboration in remote teams, but also connecting individuals to each other and the company. With the right structure, remote teams can offer both flexibility and support to employees.
- Employers that support the overall wellbeing of their employees see a 21% increase in the number of high performers.
Employers that value their workforce for more than just their professional output report a 23% increase in mental health and a 17% increase in physical health. Taking a holistic approach and supporting employees personally as well as professionally makes a significant impact on their quality of life. This eventually benefits the employer by opening the door to higher performing teams, more attraction of talent, and lower turnover.
- While 40% of respondents were considered highly engaged employees, this number increased to 60% when the organization took action on the social issues of today.
In this volatile political and cultural era, employees’ sense of shared purpose has extended to the social and cultural issues of today. Individuals want to see their business leaders step out from behind the mission statement and turn words into action. Societal awareness and meaningful changes have become points of connection and deeper engagement for employees.
- Organizations that offer employees flexibility in when, where and how much they work, see 55% of their work force as high performers.
This is compared to only 36% of employees who were identified as high performers at organizations with a standard 40-hour work week. The remote workforce has already rid themselves of the daily commute and clock-in clock-out mentality. Next to go may very well be the standard 40-hour work week. As teams continue to improve their efficiency and work in their own timeframe, organizations will see remote teams improve their output and speed.
- 87% of employees expect their employer to support them in balancing their life between work and personal commitments.
As employees settle into working from home, the lines between personal and professional life has become blurry. Work no longer can be ‘left at the door’ after a long day and distractions during working hours are often unavoidable. This requires employers to reframe how they think about their workforce, focusing less on hours and more on performance.
- A Gartner survey revealed that only 13% of employees are fully satisfied with their experience.
While many organizations focus on improving customer experience, few are turning their attention to the people providing it. Improving the employee experience can help spark engagement, retain talent, and support a more effective workforce. However, only a small percentage of employees are having their needs met. In order to unlock their potential, give employees what you would give your customers: a seamless, easy, and personalised experience that makes them feel valued.
- 79% of employees who quit their jobs cite a lack of appreciation as a key reason for leaving.
No one wants to work where they feel unwanted. Recognition is a largely underutilised tool that many employers fail to implement on a consistent basis. This often leads to a demotivated and eventually exiting workforce. However, showing appreciation for a job well done can have the opposite effect - boosting morale and transforming the speed and quality of work being done.
- 63.3% of companies say retaining employees is actually harder than hiring them.
Replacing an employee costs roughly 20% of their salary, making it an expensive problem for businesses struggling with employee retention. For this reason, many organizations have invested in boosting employee satisfaction by firing up engagement and communication strategies. This can result in not just higher retention, but a more efficient and productive workforce.
- 75% of people voluntarily leaving their jobs don’t quit their jobs, they quit their bosses
Managers play a big role in the experience of their employees. When the lines of communication are clear and open and expectations are set and met on both sides, then a high level of trust is achieved and employees feel empowered to give their best work. However, when boundaries are broken and trust is lost, it’s likely employees will voluntarily leave rather than put up with a bad boss.
- Companies that allow remote work have a 25% lower employee turnover rate.
As we stated earlier, most remote workers are eager to stay that way into the future. Why? Because they’re happier! Increased flexibility and independence have resulted in more driven and satisfied employees across all industries. The ability to work from anywhere, while always highly valued, has become a major factor in attracting and retaining top talent.
- Delays on customer projects is cited as the number one costs of high turnover, closely followed by loss of productivity and cost to rehire.
Not taking care of your employees can cost you your customers. When there is a high rate of turnover, the time it takes to hire and train a replacement is time lost and efforts exerted for the rest of the team. This often results in a scramble to pick up the slack and an impact on the speed and quality of your final product.
- 69% of employees are more likely to stay with a company for three years if they experienced great onboarding.
First impressions matter. Introducing a new employee to your company sets the tone for their work experience and can make or break their level of engagement. Use this as a time to connect them to the culture and the ethos of your company as well as invest in their professional development. You will find that this creates employees who feel a strong bond and sense of value in their role.
Employee engagement statistics
- Only 34% of the US workforce say that they feel engaged in their workplace.
While 34% is higher than in the past, less than half of the workforce feels engaged and connected to their jobs. Given how important employee engagement is for driving productivity, organizations are sitting on a lot of untapped potential.
- According to Harvard Business Review, close work friendships boost employee satisfaction by 50%.
Who you work with is often just as important as what you’re doing. For many employees, workplace friendships are key to satisfaction within a company and can drive more engagement with their role. Comradery stems from a shared sense of purpose and teamwork mentality, along with the space to relax and engage socially. Organizations who get this combination right can help foster connections between colleagues.
- 90% of leaders think an engagement strategy will impact business success. However, only 25% have a platform or a strategy to influence their employees.
Many business leaders acknowledge the benefit of engaged employees, but few have planned and acted on it. Change can only begin once the first steps have been made, meaning that businesses have to take action in order to start seeing the benefits. Setting up the right digital workspace can provide you with a platform with which you can begin to connect with and collect feedback from employees.
- Employees who receive feedback weekly are 43% more engaged. To give a point of comparison, employees who receive feedback less than once a week are only engaged by up to only 18%.
It’s no coincidence that more regular feedback results in higher levels of engagement. Employees who receive feedback directly, whether that be a ‘good job’ or ‘this needs improvement’ are able to apply it and grow faster than those who receive it on a monthly or quarterly basis. This increases engagement as employees feel more supported and invested in their role.
- In a survey conducted by Gallup, organizations that were in the top quartile of employee engagement see 21% higher profitability.
Research conducted by Gallup comparing actively engaged and disengaged teams show that employee engagement is a key factor in improving overall business outcomes like profitability, productivity, and customer satisfaction. In order to engage employees, you need the right strategy and platform. Read more ideas on how intranets can help engage employees.
Employee burnout statistics
- 75% of workers have experienced burnout, with 40% saying they’ve experienced burnout specifically during the pandemic.
Employee burnout is a result of chronic workplace stress and is characterised by feelings of exhaustion, negativity towards the job, and lack of confidence at the workplace. According to a recent mental health survey of 1,500 US professionals, a large number of workers have experienced burnout and at a greater rate since the start of the pandemic. This calls for employers to change their approach to meeting employee needs and provide better support through periods of uncertainty.
- 61% of remote workers and 53% of on-site workers now find it more difficult to “unplug” from work during off-hours.
While working from home has the benefit of flexibility, many employees find themselves working longer hours to meet customer, manager, and personal expectations. With technology making employees accessible 24/7, boundaries between work and personal life have virtually disappeared. This lack of separation can lead to increased work stress and eventually burnout. To combat the challenges of working from home, employers need to focus on improving working conditions to emphasise work-life balance.
- Burned-out employees are 63% more likely to take a sick day and 2.6 times as likely to be actively seeking a different job.
Over-stressed employees are costly to your organization. Not only does their performance suffer, but they are also less likely to show up and stay invested in their role. Given how much burnout can cost your company, it’s worth it to invest in updating your employee experience and retention strategies to meet the changing needs of your workforce.
- In 2020, a staggering 79% for employed UK adults commonly experience work-related stress. This is 20% higher than 2018's findings.
Reducing workplace stress is the number one way to decrease the likelihood of burnout. In the UK, workplace stress is the most common challenge employed adults face. Reducing this can help boost overall health and wellbeing of employees in general. To learn how to take a more holistic approach to employee support, check out these 9 answers on dealing with mental health in your company.
- 56% of workers listed having flexibility in their workday as the top way their workplace could better support them.
Employee needs are changing, and with that comes an urge for organizations to rethink employee compensation. In a survey on mental health, employees indicated flexibility in working hours as the biggest factor in relieving stress. Encouraging time off and offering mental health days were tied for second and third at 43%. Collecting employee feedback and encouraging communication through your social intranet platform can help you identify how you can better provide support.
Employee productivity statistics
- Only 21% of employees believe they are truly productive for an entire workday.
The modern workplace comes with a lot of distractions, both in the office and at home. It’s no wonder that of 2,000 workers in the UK, less than one-third felt productive over the course of an entire day. Much of the time was spent surfing social media and news websites, making food and drink, and chatting with colleagues. While some of these distractions are necessary to cultivate a healthy work environment, many employees struggle to return to the task at hand.
- When distracted, an average employee takes 23 minutes to regain focus
Distractions can add up to hours lost in a work day. According to a HubSpot survey, employees estimate they spend about 23% of their workday on distractions. This is often linked to disorganized communication and hours spent in the email inbox. To help combat this, organizations need to streamline communication in a way that allows employees to work as efficiently as possible. Read more on how intranets can help increase productivity in your company.
- Engaged employees put 57% more effort into their tasks than disengaged employees.
As we already discussed, engaged employees often lead to more productive employees. This is because engaged employees are more invested in what they’re doing and end up putting more effort into their role. The right engagement strategy can help employees avoid distractions and increase productivity.
- 86% of employees prefer to work on their own to reach peak productivity
For many employees, a quiet environment free of distractions is the best way to attack their to-do list. While working onsite can come with loud workplace colleagues and impromptu meetings, working from home can be just as challenging. Improving your internal communications strategy can help connect employees and increase efficiency while minimising time lost clarifying information and tasks. This leaves employees more time to work at their full potential.
- 41% of stressed employees state that stress negatively affects productivity.
Workplace stress can become the silent killer of company output. Not only can it zap motivation, but it kills productivity as well. According to a 2019 survey, over 20% of workers lose more than 5 hours to dwelling on stressors each week. That’s a lot of valuable time wasted. Employers that want to increase productivity must first take stock of how their organization is feeling and identify ways to improve overall well being.
How this infographic can help you
Understanding these important employee statistics not only can help increase output, but also help organizations provide a better work experience. However, in order to inspire real change, companies need to take action:
- Simplify and streamline communication to promote an efficient and stress free environment
- Collect and listen to employee feedback, and don’t forget to share your feedback as well
- Invest into strategies that engage and retain employees such as onboarding and improving company culture
All of these changes are made easier by having the right intranet software. To find out which platform suits your needs, check out our intranet comparison guide.