Engagement

Employees Are More Engaged

A new report finds that global employee engagement levels, which took a slight dip in 2016, jumped back to an all-time high in 2017.

Source: filadendron / E+ / Getty

The report, from global professional services firm Aon, is based on analysis of more than five million employees at more than 1,000 organizations around the world.

Research shows that global employee engagement levels rebounded back to 65 percent in 2017, the same as the record-high level of 2015, up from 63 percent in 2016. The percentage of employees who were highly engaged increased from 24 percent in 2016 to 27 percent in 2017.

“In the last year, there has been political and economic stability in more mature regions and continued economic expansion in regions like Asia and Africa,” said Ken Oehler, Global Culture & Engagement practice leader at Aon. “Although most companies continue to face some level of disruption and uncertainty, a robust, expanding economy means organizations are typically willing to invest more in people, and that makes the work experience much better for most employees.”

Employee Engagement Since 2011
2017 65%
2016 63%
2015 65%
2014 62%
2013 60%
2012 58%
2011 59%

Why Engagement Matters

According to Aon, improving engagement can pay dividends. Aon research shows that a five point increase in employee engagement is linked to a three point increase in revenue growth in the subsequent year.

“The concept of employee engagement is often confused with satisfaction or happiness,” said Oehler. “But it’s really about an employee’s psychological investment in their organization and motivation to produce extraordinary results. Companies with above average engagement levels will see better employee productivity, lower turnover rates, and higher customer satisfaction scores—all factors that can significantly contribute to improved financial performance.”

Regional Differences

Aon’s analysis finds regional variations in engagement are driven by regional and country-specific economic, political, and cultural differences.

Africa had the largest increase in employee engagement for 2017. Engagement rose to 66 percent, up from 61 percent in 2016. Overall, employee engagement has improved by 15 percentage points in Africa since 2012.

After a three-point drop in engagement last year, employee engagement levels in Asia Pacific bounced back to its highest levels at 65 percent. Companies in Malaysia and the Philippines increased engagement by four and six percentage points, respectively, while Indonesia improved engagement by 15 percentage points.

Europe has the lowest levels of engagement in the world at 60 percent; however some European countries saw dramatic improvements in 2017. Among the top improving countries globally, four were European: France (6 percentage points), The Netherlands (7 percentage points), Austria (9 percentage points), and Sweden (9 percentage points).

Employee engagement in North America remained unchanged in 2017 at 64 percent. Latin America also remained unchanged last year at 75 percent.

Influencing Engagement

According to Aon, rewards and recognition ranked as the strongest engagement opportunity for the second year in a row, with “recognition for contributions” and “fair pay” being the most influencing factors.

“There is not a one-size-fits all employee experience that will maximize engagement; the specific drivers will vary by region, by industry, by company, and by role,” said Oehler. “Organizations need to identify the drivers that are most important to their own employee population and then focus on creating the employee experience to yield the best return.”