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People Element Releases 2023 Employee Engagement Report

Annual Trends Reveal the Workforce Impact of Talent Shortages, Flex Work and Economic Pressures

People Element, an all-in-one employee survey and feedback provider announces the release of the 2023 Engagement Trends Annual Report. The report details the drivers of employee engagement and shares insights on how to inspire employees and improve performance.

To inform the Annual Report, feedback is gathered from tens of thousands of employees across various industries, including more than 200 organizations. Findings are contextualized against economic, societal and workforce trends to reveal shifts in employee engagement from prior years.

Chris Coberly, CEO of People Element, discussed the backdrop of the 2023 report, saying, “Our top client organizations are finding ways to adapt to an unstable economy and talent shortages as they focus efforts on engaging and retaining their employees. I hope this report can be helpful as you work to achieve the change your company needs to take advantage of the benefits of a highly engaged workforce.”

In 2020, data revealed the highest levels of employee engagement People Element recorded in over 30 years analyzing employee feedback, with 61% of employees reporting high engagement. In 2021, engagement levels declined month over month, ending with an average engagement level of 58% for the year. 2022 followed the same pattern and engagement held steady at 58%, still above pre-pandemic levels.

Key workplace trends impacting engagement in 2023 include:

  1. Shifting mindsets regarding meaningful work. Since the pandemic, employees have started to reflect on the work that they do with 62% of people reporting that they get some sense of purpose from their work but want more.
  2. A disconnect between leadership and employees around remote and hybrid work, with 44% of CEOs reporting that they want employees back in the office, and a combined 78% of employees preferring fully remote or hybrid work.
  3. Increasing employee stress, with nearly 70% of employees experiencing burnout. In 2022, respondents reported stress and burnout levels reaching the record numbers documented during the peak of the pandemic in 2020.
  4. Economic uncertainty for both employers concerned about performance and profitability, and employees focusing on better compensation and benefits.

The report details the five leading drivers of employee engagement in 2022: growth and development, communication, feeling valued, employee voice, and well-being.

Along with disclosing the emerging factors affecting engagement, the report outlines actionable insights for leaders who desire to listen, understand, engage their employees, unlocking the many benefits a highly engaged workforce can provide.