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EMPLOYEE
ENGAGEMENT
Trends Report
INCREASE
ENGAGEMENT
Survey your staff, analyze
results, and take action on
one powerful platform
Learn more.
DRIVE
PERFORMANCE
Align your team with goal
tracking, motivate with peer-topeer recognition, and evaluate
performance in real time
Learn more.
UNDERSTAND
TURNOVER
Uncover turnover truths
with a 360 assessment
and aggregate analysis
Learn more.
AUTHORS
Natalie Hackbarth
Content Coordinator
With a background in journalism and mass communications, Natalie partners with
engagement experts to create smart and informative resources that you can leverage
to increase employee engagement. On the side, she manages Quantum Workplaces
blog and social media. Natalie holds a degree in journalism from Creighton University.
Dan Harris
Engagement Analyst
Currently working on his Ph.D. in Industrial-Organizational Psychology at the University
of Nebraska at Omaha, Dan aggregates data to tell stories. Through data analysis,
he hopes to facilitate and promote meaningful changes for employees and their
employers. As a member of the data sciences team, Dan analyzes client data and works
on special projects like this trends report.
Hilary Wright
Marketing Manager
Hilary works closely with the client success and sales teams to ensure the educational
resources Quantum Workplace publishes meet the needs of HR professionals. Shes
passionate about helping organizations create positive environments where talent is
nurtured and valued. Hilary holds a masters in integrated marketing communications
from the University of Kansas.
CONTENTS
05 Introduction
06
17
Overall Trends
Regional Trends
Industry Trends
31
43
Middle-Tenured Undervalued; Huge Gap Between Hourly Workers and Executives; Plus Much More!
54 Methodology
Make work awesome.
quantumworkplace.com | info@quantumworkplace.com | 1.888.415.8302
INTRODUCTION
Top-performing organizations know that employee engagement drives business outcomes. Engaged employees are more
productive, more profitable, more customer-focused, and more likely to stay. Highly engaged workplaces grow faster,
adapt quicker, and innovate more. Organizations dont just benefit from employee engagement; they depend on it.
This report marks our fifth year publishing employee engagement and culture trends based on research through the Best
Places to Work program. Participation increased by 10 percent this year, resulting in the aggregation of responses from
more than 440,000 employees at nearly 5,500 organizations.
PART ONE:
OVERALL
TRENDS
65.9%
of employees
were engaged
in 2014.
CONTRIBUTING
DISENGAGED
HOSTILE
Average Score: 56
Highly favorable
Moderately favorable
Indifferent
Negative
Holding back
Lack motivation
Lack commitment
Plan to stay
Opportunity for
increasedperformance
Negatively impact
others productivity
3.2%
2.9%
2.8%
3.5%
3.3%
2.9%
2.8%
2.7%
6.1%
6.6%
6.4%
7.3%
7.1%
6.9%
6.6%
7.1%
20.2%
22.4%
22.0%
22.4%
22.5%
22.5%
22.6%
24.3%
70.6%
68.1%
68.8%
66.7%
67.1%
67.7%
68.0%
65.9%
2007
2008
2009
2010
2011
2012
2013
2014
Engaged
Contributing
Disengaged
Hostile
3. Global Information
Global Information
One-third of the items with the highest uncertainty were related to global information, which
is how information is shared throughout an organization. Whether its understanding their
personal future or getting feedback regularly from managers, employees lack confidence in
their employers ability to communicate.
10
11
Top Drivers
In the seven years prior to 2014, the same six engagement drivers
consistently rose to the top as having the greatest impact on
engagement. The shift in 2014 represents a significant change.
Its possible that employees feel more secure about how they
fit in their employers future plans, so this has become less
important. In its place, employees are turning their focus to the
integrity of their employers leadership.
Confidence in Leadership
Three of the top six drivers related to employees belief in leaderships commitment to the organizations success,
and two of these drivers were directly tied to leaderships integrity.
Organizations must gain and keep their employees trust in order to create an engaged work environment.
Consistent with our previous research studies, senior leadership remains a constant, critical piece to engagement.
Senior leaders must earn and foster the trust and respect of their people.
12
13
70%
66%
59%
DECLINED
STAYED
THE SAME
IMPROVED
CHANGE IN RETENTION
14
As engagement increases,
the business becomes
more successful.
64%
PERCENT OF ENGAGED EMPLOYEES
69%
56%
DECLINED
STAYED
THE SAME
IMPROVED
CHANGE IN PROFIT
15
69%
62%
57%
DECLINED
STAYED
THE SAME
IMPROVED
CHANGE IN SALES
16
68%
64%
61%
DECLINED
STAYED
THE SAME
IMPROVED
PART TWO:
REGIONAL
TRENDS
18
PARTICIPATING CITIES
Cities across America compete to attract and retain top talent, but which cities are the best when it comes to creating engaged
workplaces? This section will examine employee engagement in the nearly 40 cities surveyed through the 2014 Best Places to
Work program. Workplace perceptions varied among the cities. Some experienced improvements in engagement; however,
more than 75 percent of the cities experienced declines.
West
Midwest
South
Northeast
19
REGIONAL TRENDS
Using the Census Bureaus regional designations, lets first take a look at how engagement varied among the U.S.s four
regions: the Northeast, Midwest, South and West.
2.7%
3%
2.4%
2.9%
7.0%
8.6%
6.3%
7.9%
25.3%
28.1%
22.1%
24.0%
65.0%
60.2%
69.2%
65.2 %
NORTHEAST
MIDWEST
SOUTH
WEST
Engaged
Contributing
Disengaged
Hostile
20
Using the employee engagement profiles, cities were ranked from most
to least engaged based on the percent of employees in the engaged
profile. In order to be considered for the list, each city must have
had more than 30 participating organizations in their Best Places to
Workcontest.
Cities ranged from having 75.2 percent of employees engaged to only
55 percent of employees engaged, which represents a gap of 20.2
percentage points.
9. Austin, 69.5%
10. Tampa, 69.3%
21
Northeast
South
1. Nashville, 75.2%
2. Boston, 68.9%
2. Huntsville, 71.9%
3. Philadelphia, 64.5%
Midwest
West
1. Chicago, 69.1%
1. Sacramento, 72.7%
2. Columbus, 64.3%
NORTHEAST
WEST
MIDWEST
SOUTH
22
1. Chicago, +5.7%
1. Cincinnati, -10.7%
2. Birmingham, +4.4%
2. Dayton, -9.9%
3. Sacramento, +2.2%
3. Orlando, -7.5%
4. Albuquerque, +2.1%
4. Jacksonville, -6.9%
5. Nashville, +0.8%
PART THREE:
ORGANIZATION
SIZE TRENDS
24
1.8%
2.6%
3.2%
4.0%
5.8%
7.0%
8.3%
8.9%
5.03%
10.0%
22.2%
25.4%
26.5%
26.9%
26.3%
70.2%
65.0%
62.0%
60.2%
58.7%
1249
250499
500999
1,0004,999
5,000+
Moving from one size group to the next, the biggest dip in engagement
was 5 percent between organizations with one to 249 employees and
organizations with 250 to 499 employees. Though still following the
downward trend, the difference was smaller between organizations with
500-999 employees and those with 1,000 to 4,999 employees, with less than
a 2 percentage-point drop.
Engaged
Contributing
Disengaged
Hostile
25
DROP IN ENGAGEMENT
NUMBER OF EMPLOYEES
1249
-1.66
250499
500999
1,0004,999
5,000+
-1.69
-2.59
-3.2
-5.03
PART FOUR:
INDUSTRY
TRENDS
27
Healthcare
Professional Services
Logistics
Public Administration
Management of Enterprises
Retail
Manufacturing
Technology
Nonprofit
Utilities
Other Services
Wholesale Trade
28
The industries to the right had the most and least amount of
engaged employees.
The top three performing industries had an average of 73.2
percent engaged employees, which is 7.3 percentage points
higher than the national average. In comparison, the bottom
three industries had an average of 53.2 percent engaged
employees, which is nearly 13 percentage points below the
national average.
29
r IN RANK
INDUSTRY
% ENGAGED
+8
Management of Enterprises
74.5%
-1
Real Estate
73.1%
-1
Construction
72.0%
-1
Technology
71.1%
-1
Professional Services
70.5%
-1
69.7%
+10
Utilities
66.5%
-2
Other Services
66.1%
-1
65.3%
10
+1
Retail
63.0%
11
+1
Logistics
60.7%
12
+1
Healthcare
60.5%
13
-3
Wholesale Trade
60.3%
14
+1
Education
59.7%
15
-8
59.7%
16
-2
Nonprofit
57.6%
17
-1
Manufacturing
53.9%
18
no change
Public Administration
48.2%
26.3 percentage
points separate
the most and
least engaged
industries.
30
Engagement Improved
Engagement Declined
Arts and Entertainment, -9.8%
Nonprofit, -4.5%
Manufacturing, -5.0%
Healthcare, -3.0%
Logistics, -2.9%
Construction, -2.8%
Technology, -2.6%
Finance and Insurance, -2.3%
Accommodation and
Food Services, -2.1%
Retail, -2.0%
Professional Services, -2.0%
Education, -1.6%
PART FIVE:
PERSONAL
DEMOGRAPHICS
32
GENDER
Men Slightly More Engaged Than Women
When considering gender, men had higher levels of
engagement than women. Almost 71 percent of men
were engaged, compared to just fewer than 68 percent of
women. The chart on the right illustrates the differences
between engagement among men and women.
Roughly the same percent of men and women were
classified as hostile, 2.3 and 2.2 percent respectively. This
presents organizations with the opportunity to convert a
large number of contributing and disengaged employees,
who might have wavering perceptions of the their
workplace, to becoming more engaged.
70.8%
67.8%
MEN
WOMEN
33
advancement opportunities
34
3rd
MEN
6th
WOMEN
35
AGE
Baby Boomers Are the Most Engaged
An analysis of engagement by age showed that baby boomers
were the most engaged in 2014. Employees 66 years old and
older were the most engaged at 76.8 percent, followed by
the younger baby boomers, ages 56 to 65, with 71.5 percent
engaged.
Following baby boomers, the youngest millennials, 25
years old and younger, were the next most engaged with
71.1percent.
76.8%
71.5%
71.1%
70.3%
68.5%
66.2%
<25
2635
3645
4655
5665
66+
36
26-35
36-45
46-55
56-65
66+
YEARS OLD
YEARS OLD
YEARS OLD
YEARS OLD
YEARS OLD
YEARS OLD
1st
3rd
4th
7th
10th
19th
37
26-35
36-45
46-55
56-65
66+
YEARS OLD
YEARS OLD
YEARS OLD
YEARS OLD
YEARS OLD
YEARS OLD
5th
9th
12th
14th
9th
8th
38
Belief in Organizations
Success Becomes Increasingly
Important to Millennials
2013
2014
4th
10th
39
<25
2635
3645
4655
66+
8.2%
9.5%
10.7%
10.9%
5665
10.3%
13.2%
10.6%
13.7%
11.2%
10.6%
11.6%
13.4%
11.9%
10.6%
7.9%
10.1%
9.6%
13.1%
PERCENT UNCERTAINTY
40
EDUCATION
Employees With Advanced Degrees Are More Engaged
An analysis of engagement by education level showed that
employees with a bachelors degree or higher education were
the most engaged. Slightly more than 74 percent of those
holding a doctoral degree were engaged, followed closely by
employees with a professional degree at 73 percent.
The least engaged, employees without a high school diploma,
measured almost 11 percentage points less engaged than
those with a doctoral degree. Interestingly, employees with
an associates degree were the next least engaged at 64.4
71.0%
67.7%
64.4%
63.2%
NO HIGH
SCHOOL
DIPLOMA
HIGH
SCHOOL
DIPLOMA
SOME
COLLEGE,
NO DEGREE
ASSOCIATES
DEGREE
BACHELORS
DEGREE
MASTERS
DEGREE
PROFESSIONAL
DEGREE
DOCTORAL
DEGREE
41
HIGH SCHOOL
DIMPLOMA
SOME COLLEGE,
NO DEGREE
ASSOCIATES
DEGREE
BACHELORS
DEGREE
6th
14th
MASTERS
DEGREE
PROFESSIONAL
DEGREE
DOCTORAL
DEGREE
7th
13th
15th
15th
15th
17th
42
Perceptions
of cohesive
teams are
stronger
drivers of
engagement
for individuals
without
high school
diplomas.
PART SIX:
PROFESSIONAL
DEMOGRAPHICS
44
TENURE
New Employees Are the Most Engaged
When considering how long employees had worked at their
current organization, a slight curve appeared. Both the least
and most tenured employees were more likely to be engaged,
compared to employees who had been at an organization
for three to nine years. Employees whod been working at an
organization for one year or less were the most engaged at
77.2 percent, followed by employees tenured 15 years or more
with 69.6 percentengaged.
<1 YEARS
12 YEARS
35 YEARS
64.5%
69 YEARS
65.5%
1014 YEARS
45
1-2
3-5
6-9
10-14
15+
YEAR
YEARS
YEARS
YEARS
YEARS
YEARS
2nd
3rd
5th
6th
7th
11th
As tenure increased,
professional growth and
career development
opportunities were less
likely to driveengagement.
46
22.3%
20.0%
15.8%
18.4%
24.8%
21.9%
16.8%
19.2%
26.7%
22.8%
17.5%
20.0%
28.0%
23.1%
19.4%
17.1%
21.7%
14.4%
16.8%
21.8%
15.4%
8.5%
10.3%
PERCENT UNCERTAINTY
27.9%
<1 YEARS
12 YEARS
35 YEARS
69 YEARS
1014 YEARS
The leaders of this organization value people as their most important resource.
The leaders of this organization are committed to making it a great place to work.
The organization makes investments to make me more successful.
Considering the value I bring to the organization, I feel I am paid fairly.
15+ YEARS
47
POSITION LEVEL
Higher Position Level Leads to Higher Engagement
90.9%
PERCENT ENGAGED
76.8%
65.6%
68.7%
58.6%
HOURLY
SALARIED
PROFESSIONAL/
TECHNICAL
MANAGER
EXECUTIVE
PERCENT HOSTILE
2.3%
2.0%
0.7%
HOURLY
Note: 83.6% of employees in this study provided data on their position level, which explains
any difference between the data in this set and the national average.
SALARIED
PROFESSIONAL/
TECHNICAL
MANAGER
EXECUTIVE
48
49
DEPARTMENT
Human Resources, Sales, and Marketing Most Engaged
An analysis of engagement by department showed that employees in human resources, sales, and marketing were the most
engaged. Human resources was the most engaged at 81.2 percent, followed by sales at 78.6 percent, and marketing at 75.8
percent. Following the national trend, engagement across all departments decreased slightly, except for human resources,
where employee engagement increased less than one percentage point.
The least engaged departments, customer service, manufacturing and production, and IT, also had the highest percentage
of hostile employees. Three percent of customer service employees were considered hostile, followed by manufacturing and
production, and IT employees with 2.6 percent.
DEPARTMENT & ENGAGEMENT
81.2%
HUMAN
RESOURCES
78.6%
SALES
75.8%
MARKETING
72.7%
72.3%
71.4%
70.5%
69.8%
ENGINEERING
RESEARCH /
DEVELOPMENT
OPERATIONS/
LOGISTICS
FINANCE
IT
Note: 54.3% of employees in this study provided data on their department, which explains
any difference between the data in this set and the national average.
65.4%
CUSTOMER
SERVICE
62.5%
MANUFACTURING/
PRODUCTION
50
Leadership effectiveness is
strongly related to employee
engagement, regardless
ofdepartment.
51
I find my job
interesting and
challenging,
was the
number one
engagement
driver for
marketers.
CONCLUSION
Though employee engagement declined to its lowest point in eight years, leaders have
a huge opportunity to prevent further declines. Employees are individuals with individual
talents, individual motivations, and individual challenges. Their perceptions of their
workplaces are driven by many unique factors that come together to create one culture,
and each organizations culture is unique. This is why its vital for corporate leaders to
understand what uniquely drives engagement within their organizations.
Employee confidence is wavering, but where can leaders take action within their
organizations? The answer lies with youremployees.
52
53
Is Engagement
Declining In Your
Organization?
In 2014, employee engagement declined to its lowest point in eight years, but for
Quantum Workplace clients, engagement went up!
Collecting regular employee feedback, analyzing the results, and taking action
works! See why engagement is up for Quantum Workplaces family of clients.
Talk to one of our engagement experts today to receive a free consultation on your
engagement strategy.
METHODOLOGY
54
55
METHODOLOGY
Employee Engagement Model
Quantum Workplace defines employee engagement using a three-part model: Preach, Plan, and Pursue.
PREACH
PLAN
PURSUE
56
Survey Instrument
Analysis Methods
Drivers Analysis
1. Teamwork
2. Manager Effectiveness
3. Trust in Senior Leaders
4. Trust With Coworkers
5. Retention
57
Survey Participants
This analysis examines data collected through the Best Places to Work
program over the past eight years. The 2014 data was collected from more
than 440,000 employees from nearly 5,500 organizations who took the
survey between January1,2014 and December 31, 2014.
440,000
EMPLOYEES
FROM
5,500
ORGANIZATIONS