According to a comprehensive study conducted by Gallup in 2023, the landscape of employee engagement in the United States has experienced a noteworthy shift. In fact, engagement has seen its first annual decline in a decade. The statistics are startling: Employee engagement has seen a decrease from 36% of engaged employees in 2020 to a current standing of 34% in 2021. Regrettably, this pattern extended into the subsequent year, with figures demonstrating that a mere 32% of both full- and part-time employees within various organizations are now considered engaged, while 18% find themselves trapped in a state of active disengagement. Notably, this state of active disengagement witnessed a rise of two percentage points since 2021, and an even more troubling increase of four points since 2020. The current trajectory in the realm of employee engagement is disconcerting to say the least.
Admittedly, the figures may not immediately indicate a significant decline or an ongoing trend. But it’s essential to consider these findings within the broader context of employee engagement. Engagement had been steadily rising since the early 2000s, peaking in 2020. The present dip in engagement rates is certainly cause for concern, meriting a renewed focus and heightened attention from employers. Employee engagement has an undeniable impact on overall organizational culture, a fact that cannot and should not be underestimated.
Perceptions on Company Culture
An article published by BuiltIn in October 2019 shed light on the significance of job seekers’ perceptions regarding company culture. Their research revealed that a staggering 46% of job seekers consider the organizational culture as a pivotal factor in their job search, with an equally notable 47% attributing their job search to the desire for a compatible company culture. This highlights a significant shift from the age-old adage that “people don’t leave jobs, they leave managers.” Today, organizational culture prominently drives the decisions of job seekers. The evolution of work dynamics, search for improved work-life balance, and ever changing supply chain management, particularly in the post-pandemic era, have collectively propelled a heightened focus, and in some cases, increased scrutiny, on the organizational culture. It’s safe to say that when an organization’s culture is in jeopardy, its employees’ engagement and commitment are also at risk. The numbers don’t lie.
Finding the right partner to evaluate, build, and execute cultural transformation is similar to finding a needle in a haystack. This is where LAK excels. At LAK, we specialize in being that needle in the haystack. Our accomplished team seamlessly works with your organization to cultivate, strategize, design, implement, and evaluate a collaborative approach to shaping and fostering a positive culture.
Strengthening your organizational culture and driving growth for your business is essential. LAK can be your partner on that journey. Contact us to explore how we can help you make the changes your organization needs to make. The importance of a strong organizational culture cannot be emphasized enough. And by taking proactive steps, you can foster a motivated, engaged, and dedicated workforce that propels your organization to sustained success.