Gallup Report Overview: Time to Jumpstart Stalled Employee Engagement

Quick look: Gallup’s State of the Global Workplace: 2024 Report shows employees are struggling with finding their ideal work-life balance, which can directly affect a company’s productivity and long-term growth potential. Therefore, optimizing broker support to focus on employee engagement has become not only crucial for building a strong culture but also for gaining profitability for their clients.

Global employee engagement and overall employee well-being have hit record lows according to a recent Gallup report. Yet, it’s not all doom and gloom, as brokers and their clients have access to professional employer organizations (PEOs) to help them reinvigorate employee participation and provide the support necessary to help them do their best work.

Employee engagement is measured by the involvement and enthusiasm employees have for their workplace and in their work. Gallup found:

• 23% of employees are engaged
• 62% are not engaged
• 15% are actively disengaged

These percentages equal a loss in performance and retention and cost the global economy approximately 9% of the global GDP, which means companies can’t afford to have employee engagement stall.

Though there will always be industry ebb and flow, here’s a look at other key findings from the Gallup report and examples of how a PEO partner can help brokers and their clients sway the percentages in their favor.

Countering economic uncertainty with tailored benefit solutions

34% of employees reported “thriving” versus surviving, reflecting a percentage dip year over year. Research shows when there is economic uncertainty, employee engagement and organizational performance are most affected.

Inflation and debt are two main culprits contributing to employee stress and dissatisfaction. And, while not all negative emotions are directly correlated to happenings at work, they still hinder productivity and performance.

Per the survey’s data, 41% of employees report daily stress, and 20% of employees experience daily loneliness, a combination which can easily trigger the motivation to look for a new job. Though technology has made it convenient to introduce remote and hybrid work environments, a lack of personal interactions has left some employees feeling less connected.

Flexible work situations have been a perk for many, but a physical gap can lead to a mental detachment from the job for others. To address these types of issues head-on, it’s necessary to tailor benefits and programs which speak directly to employees’ specific needs and incentivize them to stay longer; thus, lessening recruitment and training costs.

Providing relevant, flexible benefit plans in support of mental healthcare has become a marker of success in keeping companies competitive. A PEO partner works collaboratively with brokers and small- and medium-sized businesses (SMBs) to understand the unique needs of their work population and customizes benefit plans which may include:

• Mental health coverage
• Financial counseling programs
• Tuition reimbursement
• Student loan repayment
• Discounts for wellness apps and gym memberships

Additionally, through a PEO partner, SMBs can set up an Employee Assistance Program (EAP). This includes confidential, free access to counseling, and mental healthcare referrals, and serves as a central source of information and support regarding financial issues, grief counseling, childcare, and other personal and work-related issues.

The link between better benefits and employee engagement

The equation is simple: addressing employees’ well-being by offering mental and financial health benefits leads to greater engagement.

Consequently, engaged employees result in greater company productivity (17%), increased customer loyalty/engagement (10%), and increased profitability (23%). Moreover, the report reveals developing highly engaged teams results in:

• 78% less absenteeism
• 51% lower turnover
• 68% increase in thriving employees

Several sources have indicated replacing an employee costs anywhere from one-half to two times the employee’s annual salary, making it in a company’s best interest to invest in talent retention. A PEO offers premium benefits from top providers at cost-efficient prices to help broker clients in this endeavor.

However, in addition to emphasizing well-being at work, the report also mentions prioritizing manager development as another essential way to engage employees.

Creating a culture of strong leadership

When managers are engaged at work, non-managers are also more likely to be engaged. In fact, 70% of the variance in employee engagement can be attributed to the manager. Therefore, it’s important to develop a culture of accountability with regular feedback and intentional goal-setting to help all employees thrive in their roles.

On the other hand, managers face more negative daily experiences (i.e. stress, loneliness, etc.) than non-managers and are more likely to be the ones looking for new jobs. The data suggests particular difficulties for managers handling effective hybrid and remote work environments.

Physical distance makes it easier for employees to disengage, which means companies must focus on solidifying their communication and supporting their leaders through training and development.

Gallup research shows in best-practice organizations, three-fourths of managers and seven in 10 non-managers are engaged. As part of a comprehensive suite of HR services, a PEO partner like ExtensisHR can offer employee relations guidance and support, as well as:

• HR consultations to deliver problem-solving assistance and flexible solutions
• Personalized talent management strategies
• Training and development tools and support

A human approach to driving results

Lack of employee engagement can quickly lead to a decrease in organizational outcomes, including retention rates, customer service, and profits. However, brokers and SMBs can feel encouraged by the high level of service and support provided by ExtensisHR.

Driving results requires a multi-faceted strategy, and having a dedicated, SHRM-certified team customizing HR and benefit services can provide the boost they need. Unlike cookie-cutter solutions from big-box PEOs, ExtensisHR delivers a tailored, person-to-person approach and remains in the top 1% of industry credentialing with a 95% same-day resolution rate and 93% client retention rate.

By partnering with a PEO, brokers can immediately expand their scope of service and deliver greater value as they grow their book of business. It provides an advantage in helping SMB leaders handle the complexities of HR, all with the confidence of knowing their clients will always be well taken care of.

To learn more about how our broker partners and SMB clients benefit from our PEO solution, contact ExtensisHR today.