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Company Culture and Employee Engagement Statistics

Our Favorite Culture & Employee Engagement Statistics

Culture impacts every corner of your business. Leadership stays on the same page. Employees are happier and, therefore, more engaged and productive. Prospective employees are more interested in joining and staying with your company. Perhaps most importantly, all these components work together to give your company its competitive advantage.

Don’t believe us? We’ll let the numbers speak for themselves. Check out the below statistics on the power of company culture and employee engagement.

 

Culture as a Competitive Advantage

  1. 94% of executives and 88% of employees believe a distinct workplace culture is important to business success. Via Deloitte.
  2. Employees’ overall ratings of their company’s qualities — like collaboration, work environment, and mission and value alignment — are 20% higher at companies with strong cultures. These qualities help winning cultures keep employees aligned and motivated. Via CultureIQ.
  3. 13 companies that have appeared on Fortune’s annual 100 Best Companies to Work For list every year also see higher average annual returns, with cumulative returns as high as 495% instead of 170% (Russel 3000) and 156% (S&P 500). (Source: CFO)
  4. Companies with strong cultures saw a 4x increase in revenue growth. (Source: Forbes)
  5. Being named a Best Place to Work is associated with a .75% stock jump. (Source: Glassdoor)
  6. 82% of respondents to this survey believe that culture is a potential competitive advantage. (Source: Deloitte)

 

Leadership and Culture

  1. 86% of employees at strong cultures feel their senior leadership listens to employees, compared with 70% of employees at non-winning cultures. (Source: CultureIQ)
  2. Only 12% of executives believe their companies are driving the ‘right culture’. (Source: Deloitte)
  3. Fewer than one in three executives (28%) report that they understand their organization’s culture. They know culture is important, but don’t understand it. (Source: Deloitte)
  4. 70% of the variance between lousy, good, and great cultures can be found in the knowledge, skills, and talent of the team leader. (Source: Gallup)
  5. Only 19% of executives believe their company has the ‘right culture’. (Source: Deloitte)
  6. 90% of employees at winning company cultures are confident in their company’s leadership team. (Source: CultureIQ)

We know culture is important. How do you improve it?

Download our favorite culture tips

Culture and Hiring

  1. Companies with strong employer brands cut their cost per hire by as much as half. (Source: LinkedIn)
  2. 74% of surveyed HR professionals say a company’s reputation is critical for successful recruiting. (Source: SHRM)
  3. Building an employer brand and company culture helps companies hire the right people (55%), get a greater number of qualified candidates (49%), increase employee referrals (41%), and have more diverse candidates (32%). (Source: SHRM)

 

Employee Engagement and Satisfaction

  1. We found that work environment, support systems, and mission and value alignment are the company culture qualities with the greatest impact on employee satisfaction. (Source: CultureIQ)
  2. Over a period of seven years, companies with more engaged workers grew revenue 2.5x as much as companies with less engaged workers. (Source: Bain & Company)
  3. Highly engaged workplaces see a 10% increase in customer ratings and a 20% increase in sales. (Source: Gallup)
  4. Happy employees are 12% more productive. (Source: Fast Company)
  5. Only 13% of employees are considered ‘highly engaged.’ (Source: Gallup)
  6. 26% of employees are considered ‘actively disengaged.’ (Source: Gallup)

 

Measuring Culture and Engagement

  1. 64% of organizations still only measure employee engagement annually, despite the emergence of tools to more frequently do so and an understanding that it’s more effective to measure regularly. (Source: Deloitte)
  2. Nearly one in five employees (18%) reported that their companies don’t formally measure employee engagement at all. (Source: Deloitte)
  3. Only 8% of respondents said they measure employee engagement on a monthly or more frequent basis. (Source: Deloitte)
  4. Only 46% of companies report that they’re prepared to tackle the engagement challenge. (Source: Deloitte)

P.S. — Want more insights on the state of company culture? Check out our free culture report here.

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