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hr 2022 Employee Engagement Trends Report

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Insights, analysis, and benchmarking data for McLean & Company’s
Employee Engagement Survey from 2019 to 2021.
McLean & Company is a research and advisory firm that provides practical solutions
to human resources challenges with executable research, tools, and advice that will have a
clear and measurable impact on your business. © 1997-2022 McLean & Company.
McLean & Company is a division of Info-Tech Research Group Inc.
McLean & Company © | 2022 Employee Engagement Trends
Ex ecutive S ummary
Like everything else in the world, employee engagement has gone through upheaval
over the past two years. Employees’ relationship to their organizations shifted with
the onset of the COV ID-19 pandemic, remote and virtual work, and more. Employee
priorities are changing, and the way organizations think about employee
engagement needs to change as well.
This report seeks to answer the following questions:
•
What impact was there on employee engagement in the immediate aftermath of
the COV ID-19 pandemic? How has that impact changed in the time that
followed?
•
What impact has the explosion of remote and hybrid work had on employee
engagement?
•
How has the competitive labor market starting in 2021 been reflected in
employee engagement data, particularly key retention drivers?
•
What have some of the major trends and themes been in employee
engagement?
McLean & Company © | 2022 Employee Engagement
Trends
K ey points to rememb er:
•
K nowing how other organizations
are performing is not the best way
to judge your own organization’s
performance, but there is value in
understanding broader trends
occurring in the world.
•
Employee engagement action
planning should always be based on
feedback from your own employees,
not from benchmark data.
2
Introduction
01
Engagement Overview:
201 9-2021
02
Organizational Drivers
Table of
Contents
McLean & Company © | 2022 Employee Engagement Trends
03
Job Drivers
04
Retention Drivers
Appendix
Benchmarking Data: 201 9-2021
3
How to Read T his Report
This report is based on data gathered from McLean & Company’s Employee Engagement Survey from January 1,
2019 to December 31, 2021. For the most up-to-date Employee Engagement data, contact your account
representative for updated benchmarking information.
Note: Graph totals may not add up to 100% due to rounding. Some n-counts throughout the report indicate a range
of responses due to organizations who chose to omit certain questions.
•
2019: 67-108 organizations, 28,537-80,600 employees
•
2020: 39-83 organizations, 18,126-52,476 employees (Note: To control for factors stemming from the COV ID-19
pandemic, only data collected from April to December of 2020 was included.)
•
2021: 71-140 organizations, 46,267-125,788 employees
Data from McLean & Company’s 2022 HR Trends Report and New Hire Survey and Employee Exit Survey databases
have also been included in this report. Data was gathered from organizations primarily based in North America.
Key terms used throughout this report include:
Organiz ational siz e
Employee segments
T op-box scores
Small: 250 or fewer
employees
Medium: 251 to 1,000
employees
Large: 1,001 or more
employees
Age
Tenure
Gender (M/F) – only two genders were
analyzed due to sample size constraints
Work Style (e.g. onsite vs. remote/hybrid
and field)
A top-box score represents the
percentage of respondents
with a score of 5 or 6 on a 6point scale for a question or
driver.
McLean & Company © | 2022 Employee Engagement Trends
4
W hat is employee engagement?
Satisfied employees feel
comfortable and are generally
happy that their needs are
being met.
McLean & C ompany
defines employee
engagement as an
overall sense of b eing
energiz ed b y and
passionate ab out one's
work and dedicated
toward one's workplace.
It is important to
differentiate this
concept from employee
satisfaction.
Engaged employees feel
energized, passionate, and
dedicated. They are highly
involved with their work and
the organization.
Average P erfo rm anc e
Characteristics
Less likely to help others for the
betterment of the organization
Generally keep
to themselves
Committed to the degree
that their needs are met
McLean & Company © | 2022 Employee Engagement Trends
Op tim al P erfo rm anc e
Characteristics
Help others for the betterment
of the organization
Meet minimum
performance requirements
Stay at the organization
because of what they
get from it
Consistently exceed
performance requirements
Stay at the organization
because of what they
give to it
Recommend improvement
opportunities
Have a sense of
purpose and pride
in their work
5
A positive employee ex perience
promotes strong employee engagement
Individual employee engagement is the outcome of a strong overall employee ex perience (EX ), which is
measured using the response to a single question: “How likely would you be to recommend this organization to
a qualified friend or family member as a great place to work?”
Employee ex perience is rising in priority as a way for
organiz ations to improve employee-engagement-related
outcomes such as productivity, retention, and more.
#2
“Providing a great employee experience” jumped
from 5th to 2nd in HR priorities for 2022.
(McLean & Company, 2022 HR Trends Survey; n=826)
This highlights the emphasis organizations are placing on helping
employees adjust after having been forced to change the way work
gets done. Employees are increasingly expecting a work experience
that fits more seamlessly into their lives.
As the outcome of an employee’s positive and negative work experiences, the employee experience is strongly correlated with
employee engagement across all years measured (McLean & Company, Engagement Database, 2019-2021; n=50,438-121,650).
McLean & Company © | 2022 Employee Engagement Trends
6
McLean & Company uses various measures to inform the level of
engagement at an organization.
SECTION 1
Employee
Engagement
Overview:
2019-2021
McLean & Company © | 2022 Employee Engagement Trends
Employee Experience Monitor (EXM): Measures the employee experience
through an Employee Net Promoter Score (eNPS) – the difference
between an organization’s percentage of supporters and percentage of
detractors as measured by a single question.
Engagement Levels: Measures employee engagement levels (engaged,
almost engaged, indifferent, or disengaged) as indicated through the
average response to the Engagement Measure Q uestions – rated on a
scale of 1 to 6, where 1 = Strongly Disagree and 6 = Strongly Agree.
Trending Q uestions: Measures the employee’s satisfaction with their
organization and job compared to a year ago, as well as their intent to
stay at the organization a year from now.
In the sections that follow, this report explores three engagement drivers:
Organizational Drivers: Areas that influence an employee’s satisfaction
and commitment to their organization.
Job Drivers: Areas that influence an employee’s happiness and
commitment with their day-to-day role.
Retention Drivers: Areas that influence an employee’s desire and
likelihood to stay at an organization.
7
Overall 2 0 1 9 -2 0 2 1 Employee
Engagement and Employee N et
Promoter S cores
Employee Engagement scores, 2 0 1 9 -2 0 2 1 :
Level
Employee
Engagement
Level
2019
2020*
2021
Engaged
58.7%
62.0%
60.7%
Almost Engaged
21.5%
20.4%
20.6%
Indifferent
9.9%
9.2%
9.4%
Disengaged
9.8%
8.4%
9.3%
Responses are measured on a
6 -point scale:
•
Engaged: 5.01-6.0
•
Almost engaged: 4.51-5.0
•
Indifferent: 4.01-4.5
•
Disengaged: 1.0-4.0
T he Employee Experience Monitor (EX M) uses the Employee N et Promoter S core (eN PS ) to gauge employee
engagement using a single question on a 0 -1 0 scale: How likely would you b e to recommend this organiz ation to
a qualified friend or family memb er as a great place to work?
C alculated
EX M
S core
=
EX M S core
–
% of
Promoterswith
Respondents
9-10 out of 10
McLean & Company © | 2022 Employee Engagement Trends
% of
Detractorswith
Respondents
0-6 out of 10
2019
2020*
2021
10.4
14.6
15.1
*April to December of 2020
The full response range is -100 to 100.
Scores above 0 are typically considered a positive result.
8
Engagement Priority Matrix : 2 0 1 9
Engagement Priority Matrix Overview
Five out of the top seven drivers for importance to overall employee engagement are
organizational drivers, with Culture ranking #1 in all years measured (2019-2021).
The engagement priority matrix shows how each
engagement driver performs relative to one another in
terms of driver score (how positively employees view
this area) and impact on engagement (how much this
area influences overall engagement) on an individual
level.
The quadrants represent the varying levels of driver
score and impact on engagement for each area and
can help inform action planning:
• Improve: drivers that have relatively low scores
and are of high importance to engagement.
•
Evaluate: drivers that have relatively low scores
and are of low importance to engagement.
•
Leverage: drivers that have relatively high scores
and are of high importance to engagement.
•
Maintain: drivers that have relatively high scores
and are of low importance to engagement.
Organizational Drivers
Retention Drivers
McLean & Company © | 2022 Employee Engagement Trends
Job Drivers
Work-Life Balance
Working Environment and Co-worker Relationships were perceived the most
positively of all drivers measured, though their impact on overall engagement were
lower than many drivers. This was consistent across all years (2019-2021).
9
Engagement Priority Matrix : 2 0 2 0 *
*April to December of 2020
The impact of Senior
Management Relationships
on engagement leapfrogged
that of Department
Relationships in 2020.
Benefits’ overall importance
to engagement and overall
satisfaction increased when
compared to 2019. The
remote work option was
seen as a valuable perk by
many employees.
-
Organizational Drivers
McLean & Company © | 2022 Employee Engagement Trends
In 2020, Employee
Empowerment, Culture,
and Company Potential
were still the drivers with
the largest impact on
engagement. The
increased uncertainty
surrounding a company’s
future during the early
days of the pandemic
may have led to Company
Potential’s increase in
importance to overall
employee engagement.
Retention Drivers
Job Drivers
10
Engagement Priority Matrix : 2 0 2 1
Organizational Drivers
The Improve quadrant
(high importance, low
scoring) signals a
significant opportunity to
plan improvements
related to Department
and Senior Management
Relationships, as well as
Company Potential.
-
Insight
Retention Drivers
Job Drivers
In general, employees
viewed their relationships
with their direct coworkers more positively
than other relationships.
These relationships can
be leveraged to help
improve overall
engagement.
Despite global upheaval, the drivers most important to employees’ overall engagement did not shift significantly from 2019 to 2021. However, it’s
important to remember that annual engagement surveys can mask the volatility of the employee experience on a day-to-day basis. It’s important to
track employees’ in-the-moment needs through an approach such as the Employee Net Promoter Score in McLean & Company’s EXM Survey.
McLean & Company © | 2022 Employee Engagement Trends
11
Engagement significantly increased with
the advent of the C OV ID -1 9 pandemic
F ull year 2 0 1 9 vs. April-D ecemb er 2 0 2 0
As organizations adjusted to the realities of the pandemic
starting in April 2020, there was an upward shift in
engagement scores compared to 2019:
n=52,476
62
%
8 .4 %
This upward shift was seen in the following questions:
3.0%
increase in “I often look forward to coming to
work”
3.4%
increase in “I am more satisfied with the organization
now than I was a year ago”
5.1%
increase in “This organization takes actions to improve
employee engagement”
n=35,019
of employees were engaged in 2020,*
a 3.4% increase from 2019
n=31,295
of employees were disengaged in 2020,
a 1.5% decrease from 2019
*April to December of 2020
n=36,634
W hat was the impact on remote/hyb rid and onsite employees?
Prior to the pandemic, remote/hybrid
employees were more engaged than
onsite employees
This trend continued into 2020 despite the large
number of newly remote workers.
McLean & Company © | 2022 Employee Engagement Trends
% of Engaged Employees
Onsite
5 5 .3 %
2019
n=9,076
Remote/hyb rid
6 1 .4
%
6 5 .4 %
2020*
2019
n=6,418
n=3,908
6 9 .4 %
2020*
n=1,353
12
Increases in engagement during 2 0 2 0
were generally sustained in 2 0 2 1
Y early Engagement D river S cores
Organizational Drivers
Job Drivers
Retention Drivers
Employees viewed all
engagement drivers more
positively in 2 0 2 0 * than in 2 0 1 9
There were few changes in engagement drivers
from 2020 to 2021 and they did not likely have a
large business impact.
69%
67%
Retention is a growing area of concern
The exception to this was a dip in retention drivers
scores in 2021, which reflects the challenges many
organizations are facing with talent acquisition and
retention in the Great Resignation. This trend will be
further explored in Section 4.
65%
63%
61%
2019
2020
2021
n=80,600
n=52,476
n=125,788
*April to December of 2020
McLean & Company © | 2022 Employee Engagement Trends
Insight
Organizations who have maintained
engagement progress throughout 2021 see that
employees are recognizing the efforts put in to
increase engagement. Now is the time to build
on the progress and keep engagement high.
13
SECTION 2
Organiz ational
D rivers
Organizational drivers are areas that influence an employee’s
satisfaction and commitment to their organization.
Culture: The degree to which an employee identifies with the
beliefs, values, and attitudes of the organization.
Customer Focus: The employee’s belief in the organization’s
strategy and ability to meet the customer’s needs and wants.
Company Potential: The employee’s understanding and
commitment to the organization’s mission as well as the
employee’s excitement about the organization’s mission and future.
Department Relationships: The extent to which employees from
separate departments work together to get things done.
Senior Management Relationships: The degree to which an
employee believes senior management is trustworthy and
transparent and values employee feedback/input.
McLean & Company © | 2022 Employee Engagement Trends
14
Remote/hyb rid work did not impact
views on C ulture
W hen it came to perceptions of C ulture, no significant differences were found
b etween onsite and remote/hyb rid workers
Despite the anecdotal challenges and concerns with maintaining a strong culture in a distributed workforce, Culture scores
increased between 2019 and 2020 and did not change significantly between 2020 and 2021 across the entire organization.
This suggests efforts to ensure remote employees feel included and connected to the organization’s mission and values
are working across the board. This is positive, as the Culture driver ranks #1 in impact on engagement.
However, responses to questions in the D epartment Relationships driver did show some contrast
b etween onsite and remote/hyb rid employees
9.0
%
Onsite employees were 9.0% more likely* to agree with “Departments work well together to get things
done.” than remote/hybrid employees. *4.7 percentage point difference
2021; n=6,659-14,303
Insight
Organizations must intentionally create opportunities for cross-departmental collaboration and increase visibility of each department’s
contributions. This is especially important for remote/hybrid workers who may have less exposure to other departments day to day.
McLean & Company © | 2022 Employee Engagement Trends
15
Employees’ satisfaction with senior
leaders increased over the past few years
All questions under the
S enior Management
Relationships driver saw
increased scores relative
to the 2 0 1 9 b aseline:
Communication from executives
increased during the early stage
of the pandemic in 2020. This is
likely the cause of increased
trust and understanding
between employees and the
leadership team.
Going forward…
Percentage change, 2 0 1 9 2021:
The CEO/President inspires me
+6.6%
My department's executive leader inspires me
+7.4%
The executive leadership team inspires me
+9.8%
I trust my department's executive leader
+5.4%
I trust the members of the executive leadership team
+9.3%
My department's executive leader acts on
employee feedback
The executive leadership team acts on
employee feedback
I understand the rationale behind most of the
decisions made by my department's executive leader
I understand the rationale behind most of the business
decisions made by the executive leadership team
35,0%
2019
n=28,537-66,848
+7.7%
+9.2%
2020
n=18,548-34,256
2021
n=46,267-87,798
*April to
December of
2020
+7.4%
+8.6%
40,0%
45,0%
50,0%
55,0%
60,0%
65,0%
70,0%
75,0%
Organizations must build on the improvements in communications seen during the pandemic, especially when it comes to transparency and closing the loop on or acting
on employee feedback. This is particularly important because the Senior Management Relationships driver is a top-four driver in correlation with overall engagement.
McLean & Company © | 2022 Employee Engagement Trends
16
Perceptions of senior manager
relationships varied b y segment
S enior Management Relationships D river
b y W ork S tyle
S enior Management Relationships D river
b y Organiz ation S iz e
63%
64%
Small
60%
57%
56%
51%
52%
45%
2019
2020
2021
n=1,790-6,737
n=1,079-1,882
n=4,168-8,949
*April to
December of 2020
In 2020* and 2021, senior leaders may have focused more efforts on onsite
employees facing greater uncertainty and health and safety concerns than
they did on remote/hybrid staff. However, as the scores for the two groups
show, leaders also need to focus on remote/hybrid employees who may be
more prone to feeling disconnected from the organization, particularly where
remote/hybrid work has become the norm.
Insight
Mediu
m
2019
2020
2021
n=​4,445-34,547
n=​2,109-14,687
n=3,400-48,074
*April to
December of 2020
Large organizations saw the biggest jump in senior manager relationship
scores between 2019 and 2021, likely due to increased visibility, transparency,
and communication from senior leaders. For large organizations to sustain
momentum, or close the gaps with small and medium-sized organizations in
this driver, they must continue to focus senior management efforts on instilling
trust in employees.
Communication, visibility, and transparency are the keys to strong results when it comes to senior manager relationships positively impacting
employee engagement.
McLean & Company © | 2022 Employee Engagement Trends
17
SECTION 3
J ob
D rivers
McLean & Company © | 2022 Employee Engagement Trends
Job Engagement Drivers are areas that influence an employee’s happiness and
commitment with their day-to-day role.
Employee Empowerment: The degree to which employees have accountability and
control over their work within a supported environment.
Learning and Development: A cooperative and continuous effort between an employee
and the organization to enhance an employee’s skill set and expertise and meet an
employee’s career objectives and the organization’s needs.
Rewards and Recognition: Rewards (such as tangible and intangible gifts) and
recognition that employees receive as a form of acknowledgement for a job well done.
Co-worker Relationships: The extent to which colleagues, who work together but do
not report to one another, get along with and support each other.
Manager Relationships: The quality of the professional relationship an employee has
with their manager. Manager Relationships depend on the trust that exists between
these two individuals and the extent that a manager supports and develops the
employee.
18
J ob driver scores jumped in 2 0 2 0 , then
plateaued in 2 0 2 1
J ob D rivers
2.2%
80%
6.6%
4.4%**
70%
6.0%
60%
7.0%
2019
n=50,357-66,187
2020
n=26,768-35,456
2021
n=76,813-94,088
*April to December of 2020
50%
**percentage changes,
2019-2021
40%
Employee
Empowerment
Learning and
Development
Rewards and
Recognition
Co-worker
Relationships
Manager
Relationships
W hile average job driver scores increased from 2 0 1 9 to 2 0 2 1 , the data indicates several key areas to target for
improvement
Most notably, employees are much less satisfied with Learning and Development and Rewards and Recognition than other job drivers. As “Opportunities for
career advancement” is the #1 reason employees leave an organization (McLean & Company, 2022 Exit Survey; n=24,605), this signals the need to provide more visibility
into internal career progression opportunities and encourage development activities to improve engagement.
McLean & Company © | 2022 Employee Engagement Trends
19
Learning & development and rewards &
recognition fall in the b ottom 3 of drivers
On average, Learning and D evelopment (L& D ) and Rewards and Recognition were b oth ranked among the lowest
three drivers from 2 0 1 9 to 2 0 2 1 (McLean & Company, Engagement Database n=30,830-84,873).
Learning and D evelopment
5 4 .3
%
5 2 .1
%
3-year average
top-box score
Rewards and Recognition
3-year average
top-box score
McLean & Company © | 2022 Employee Engagement Trends
Employees with less than one year of tenure were 1 4 .5 % more satisfied with
L& D than employees with five to ten years of tenure
n=4,16713,102
As satisfaction drops over time, providing meaningful continuous learning opportunities for employees at
all stages of their careers is critical.
Address this with an L&D strategy: having a strategic approach to L&D is associated with improved
organizational performance and HR effectiveness, along with engagement (McLean & Company, 2022 HR Trends
Survey; n=379-387).
Employees working at small organizations were 22.5% more likely* than those
in large organizations to agree with the statement “Promotions in my
department go to those who deserve them the most”
*10.6 percentage point difference
n=1,85751,557
Being transparent with how rewards and promotions are determined may be more challenging as
organizations grow, but it is an important factor in engagement. Organizations should dedicate the necessary
time and resources to being transparent about how and why employee contributions are being rewarded.
The correlation between praise and engagement increased year over year from 2019 to 2021 (“I am praised
when I go above and beyond the call of duty”). This signals a need to frequently review and renew Rewards
and Recognition efforts to help drive engagement and to instill a culture of recognition and appreciation.
20
T he impact of work style on
relationships cannot b e overlooked
T here are significant differences and trends in how onsite and remote/hyb rid employees perceive manager and coworker relationships
Onsite vs. Remote/Hybrid: Manager Relationships
n=978-11,854
86%
82%
“My manager cares
about me as a person”
78%
74%
Onsite vs. Remote/Hybrid: Co-worker Relationships
n=645-9,012
77%
72%
“I have a good friend
at this organization”
67%
62%
2019
Onsite
Remote/hybrid
2020
2021
*April to December of 2020
McLean & Company © | 2022 Employee Engagement Trends
Onsite employees’ satisfaction with Manager Relationships jumped
in 2020*
The emphasis placed on the health, safety, and wellbeing of onsite
employees shown by many managers and organizations in the early days of
the pandemic likely contributed to this change.
The drop in 2021 suggests that managers must continue to strengthen
relationships with their employees and demonstrate that their support
extends beyond times of crisis.
The dip in 2021 in how remote/hybrid employees perceive Coworker Relationships may be driven by the many newly hired
remote/hybrid employees
Employees who shifted to remote work in 2020 could rely on relationships
previously built in-person. The decrease in these scores for 2021 may be
attributed to new hires struggling to develop relationships with their coworkers in a virtual environment. At the same time, Co-worker Relationships
scores for onsite employees returned to approximately their pre-pandemic
baseline.
21
W ork style is also impacting other job
drivers such as empowerment and L& D
Remote/hyb rid employees were more satisfied with Employee Empowerment and L& D than onsite employees in
2 0 1 9 b ut viewed each driver less positively through 2 0 2 0 * and 2 0 2 1
Onsite vs. Remote/Hybrid: Employee Empowerment
n=1,155-12,353
72%
“If I make a suggestion
to improve something
in my department, I
believe it will be taken
seriously”
69%
66%
63%
Onsite vs. Remote/Hybrid: L&D
n=1,075-8,741
60%
“In the last year, I have
received an adequate
amount of training”
56%
52%
48%
2019
Onsite
2020
Remote/hybrid
2021
*April to December of 2020
McLean & Company © | 2022 Employee Engagement Trends
Accountability and control over one’s work were apparent
challenges with transitioning to a virtual environment
While leaders were communicating downward in 2020, newly
remote/hybrid employees may have found it difficult to influence positive
changes, resulting in a drop in scores. This trend continued into 2021,
indicating the need for leaders to provide more opportunities for upward
communication from employees.
Satisfaction between onsite and remote/hybrid employees
diverged in 2020 and 2021
Remote/hybrid workers may have felt they needed training on how to
communicate and collaborate effectively in a virtual environment and
on leveraging new tools and technologies to efficiently complete tasks.
This may also be an indication of some organizations’ reliance on inperson training or may represent an undercurrent of employee
dissatisfaction at the need to upskill or reskill to adjust to the virtual
environment.
22
SECTION 4
Retention
D rivers
Retention Drivers are areas that influence an employee’s desire and likelihood to
stay at an organization. An organization cannot get to engagement without
satisfying a minimum requirement in these areas.
Compensation: The level of fairness an employee attributes to their compensation
given the work they do and what they could make elsewhere in a similar role.
Benefits: Employees’ perspective of the competitiveness of an organization’s
health benefits and additional perks (e.g. gym memberships, provided meals and
snacks, and discounts).
Work-Life Balance: The extent to which employees feel they can balance their work
and personal life and manage their work stress.
Working Environment: The extent to which employees feel physically and
emotionally safe in their workplace.
McLean & Company © | 2022 Employee Engagement Trends
23
D espite improvements in 2 0 2 0 , retention
scores returned to pre-pandemic levels
in 2 0 2 1
Retention D river S cores
1.1%
90%
70%
*April to December of 2020
**percentage
changes, 2019-2020
Perspectives on retention driver questions varied b y
employee segment:
Males consistently agreed that they are not
discriminated against or emotionally harassed at
work more than females did (2019-2021; n=8,267-29,372)
0.8%
10.3%
The discrepancy between genders calls out the need for organizations
to reinforce DEI as a priority and ensure all employees feel safe in their
workplace.
9.1%**
50%
Employees aged 4 5 and older viewed work-life
b alance more positively than younger employees
30%
Compensation
2019
n=​38,970-60,951
Benefits
Working
Environment
2020
n=​21,030-32,957
Work-Life
Balance
2021
n=63,969-93,122
Improvements in Compensation and Benefits scores and steady
Working Environment and Work-Life Balance scores despite the
rapid pace of change contributed to higher engagement during the
early part of the pandemic. However, in 2021 the increased scores in
Compensation and Benefits returned to their pre-pandemic baseline.
McLean & Company © | 2022 Employee Engagement Trends
45+
(2021; n=34,726-41,016)
This signals a need to uncover the root causes of this discrepancy,
such as unclear work boundaries and a lack of employee
empowerment for younger employees.
Retention drivers do have an impact on engagement, though it is relatively low
compared to other drivers. However, their impact on retention is high. Moving
forward, organizations need to focus their efforts on improving retention
drivers to help alleviate the turnover challenges that began in 2021 and have
continued into 2022.
24
C hanging work conditions b rought on
b y the pandemic are no longer unique
C ompensation and B enefits D river S cores
-9.2%
64%
61,5%
56%
48%
-5.6%**
Organiz ations report increasing salaries and b enefits:
55,8%
50,8%
47,9%
Compensation
n=​21,030-23,462
43%
Increased
salaries
40%
2020
With tight labor markets and increased ability to explore jobs beyond previous
geographical boundaries contributing to increased turnover, some organizations have
turned to increased Compensation and Benefits to attract and retain talent.
Benefits
2021
*April to December of 2020
n=69,086-71,263
**percentage changes,
2020-2021
25%
Increased
b enefits
McLean & Company,
2022 HR Trends Report;
n=394
Regardless, employee satisfaction with these drivers decreased. While economic
conditions (e.g. high inflation) can partially explain the change, there is still work to be
done to understand and address the root causes of the drops and to communicate
the organization’s efforts, such as through an employee value proposition.
Just as many employees now expect flexible work arrangements, their definition and expectations of benefits have broadened.
The drop in Benefits scores from 2020 to 2021 may be explained by increased awareness
decrease in “My benefits
of unique benefits and perks beyond traditional health coverage offered by competing
are competitive with
organizations. It may also be that the impacts of the pandemic have increased both the
similar jobs I might find
need for, and expectations of, expanded benefits packages. Continuous evaluation and
n=77,838
elsewhere”
updates of retention efforts will be required to keep on top of these trends.
McLean & Company © | 2022 Employee Engagement Trends
8.9
%
(percentage difference, 2020-2021)
25
W ork-life b alance is b ecoming a
challenge in the new world of work
W hile workplace flex ib ility comes with many
b enefits, longer work hours jeopardiz e wellb eing
62%
of organiz ations reported
increased working hours,
while 8 0 % reported an
increase in flex ib ility
Despite the anticipated benefits of ongoing flexibility, remote/hybrid employees’
ability to maintain Work-Life Balance in 2021 returned to pre-pandemic levels:
74%
Onsite vs. Remote/Hybrid: Work-Life Balance
69%
n=1,025-13,687
“I am able to maintain a
balance between my
work and personal life”
64%
(McLean & Company, 2022 HR Trends Report; n=394)
Longer hours can contribute to stress and burnout, which is a
threat to employee engagement and retention. With careful
management (e.g. setting clear expectations and establishing
manageable workloads), flexible work arrangements can increase
and sustain engagement and productivity at an organization.
Insight
59%
2019
2020
Onsite
2021
*April to December of 2020
Remote/Hybrid
Organizations were especially accommodating in 2020, which could explain the initial
spike seen in Work-Life Balance. As remote work became the norm in 2021, employees
are realizing that this work style brings its own challenges, such as a lack of separation
between personal and workspace.
Organizations need to get creative about how they support employees and revisit their efforts to promote all aspects of wellbeing.
Mental wellbeing must be a particular focus as longer work hours may add to workload pressures and lead to employee burnout.
McLean & Company © | 2022 Employee Engagement Trends
26
Actions and Practical Resources
U se McLean & Company’s diagnostic products to shed light on
employee engagement, experience, retention, DEI, and more.
W hat
C omes N ex t?
It is a complex undertaking to understand the impact of the social, economic,
and cultural upheaval of the past several years on employee engagement. The
averages of annual surveys can mask the volatility of the day-to-day employee
experience, which shows the importance of combining more frequent
measurements than just the annual engagement survey. Meanwhile, the
engagement of different employee groups and demographics can also be lost in
averages.
It’s crucial to use engagement data as a starting point rather than the end of the
conversation. Dig deeper into the concerning trends and themes that emerge
from your engagement data and address them using the practical resources
available through McLean & Company.
McLean & Company © | 2022 Employee Engagement Trends
Retention drivers are always among the lowest scoring in employee
engagement data, but that doesn’t mean we should accept low
scores. In today’s competitive labor market, it’s crucial to create an
effective talent retention plan.
As salaries and benefits increase and employees’ perception of them
continues to be negative, it is time to focus on how rewards are
communicated, whether that’s through a strategic project like
creating an employee value proposition, a tactical project like total
rewards statements, or training for managers on how to have
conversations about pay.
The data shows that engagement differs for onsite and remote/hybrid
employees. Prepare managers to lead in a hybrid work environment
to minimize the impact of the new working environment on
engagement.
Work-life balance and burnout are becoming a challenge in today’s
work environment, so take the time to revisit your wellbeing offerings.
27
Engagement D rivers (2 0 1 9 -2 0 2 1 )
2020*
2021
Culture
72.7%
76.1%
75.0%
N et change (2 0 1 9 2 0 2 1 )**
+ 2 .3
Customer Focus
66.2%
70.3%
69.7%
+ 3 .5
65.1%
69.4%
68.7%
+ 3 .6
: Decreased
Department Relationships
61.8%
63.9%
64.4%
+ 2 .6
Senior Management Relationships
54.9%
59.3%
59.2%
+ 4 .3
2019
2020*
2021
68.9%
52.3%
50.1%
76.8%
68.6%
71.8%
55.2%
52.7%
79.0%
72.6%
71.9%
55.5%
53.6%
78.5%
73.1%
N et change (2 0 1 9 -2 0 2 1 )
+ 3 .0
+ 3 .2
+ 3 .5
+ 1 .7
+ 4 .5
: Similar
(< =0.5%
difference)
2019
2020*
2021
N et change (2019-2021)
Compensation
46.6%
50.8%
47.9%
+ 1 .3
Benefits
55.7%
61.5%
55.8%
+ 0 .1
Working Environment
84.8%
85.7%
86.1%
+ 1 .3
Work-Life Balance
62.8%
63.3%
62.6%
-0 .2
n= 38,970-66,187
responses, 72-95
organizations
n=21,030-35,456
responses, 46-64
organizations
Organiz ational
Company Potential
D rivers
J ob D rivers
Retention
D rivers
Legend for year
over year change:
2019
Employee Empowerment
Learning And Development
Rewards And Recognition
Co-worker Relationships
Manager Relationships
McLean & Company © | 2022 Employee Engagement Trends
n=62,211-94,088
responses, 89-117
organizations
*April to December of 2020
** Percentage point
difference
: Increased
28
G ender comparisons (2 0 1 9 -2 0 2 1 )
Engagement Level
Engaged
Almost Engaged
Indifferent
Disengaged
Legend for year
over year change:
G ender (M/F )
2019
2020*
2021
N et change (20192021)**
Female
58.2%
63.6%
62.6%
+ 4 .4
: Increased
Male
59.0%
61.6%
60.8%
+ 1 .8
: Decreased
Female
21.5%
19.9%
20.3%
-1 .2
Male
21.4%
20.0%
20.5%
-0 .9
: Similar
(< =0.5%
difference)
Female
10.0%
9.1%
8.8%
-1 .2
Male
9.8%
9.6%
9.3%
-0 .5
Female
10.3%
7.4%
8.2%
-2 .1
9.8%
8.7%
9.3%
-0 .5
Male
McLean & Company © | 2022 Employee Engagement Trends
n=34,107-42,197 n=18,157-25,890
n=44,579-59,013
responses,
responses,
responses,
96 organizations 72-73 organizations 110-111 organizations
*April to December of 2020
** Percentage point difference
29
T enure comparisons (2 0 1 9 -2 0 2 1 )
*April to December of 2020
2019
3 years 5 years 10 years
1 year to
Engagement Less than less than to less to less to less
1 year
than 5 than 10 than 20
Level
3 years
years
years
years
2020*
3 years 5 years 10 years
1 year to
20+ Less than
to less to less to less
less than
years
1 year
than 5 than 10 than 20
3 years
years
years
years
2021
3 years 5 years 10 years
1 year to
20+ Less than
to less to less to less
less than
years
1 year
than 5 than 10 than 20
3 years
years
years
years
20+
years
Engaged
63.0% 56.1% 55.0% 58.8% 60.6% 60.5% 67.8% 60.7% 59.6% 63.0% 64.3% 68.4% 66.6% 59.5% 58.4% 59.1% 61.6% 65.4%
Almost
Engaged
19.5% 22.7% 22.3% 20.9% 22.2% 20.6% 19.1% 21.1% 21.0% 20.5% 20.0% 17.7% 17.7% 20.9% 21.4% 21.2% 21.1% 20.1%
Indifferent
9.0% 10.5% 11.8% 10.6% 9.0% 9.7% 6.8% 9.5% 10.4% 8.8% 8.9% 7.3% 8.1% 9.3% 10.4% 9.9% 9.0% 7.7%
Disengaged
8.4% 10.8% 11.0% 9.8% 8.2% 9.2% 6.3% 8.7% 9.0% 7.7% 6.8% 6.6% 7.7% 10.3% 9.8% 9.8% 8.3% 6.8%
n=8,117-14,835 responses,
55-89 organizations
McLean & Company © | 2022 Employee Engagement Trends
n= 4,937-10,823 responses,
47-69 organizations
n= 9,346-23,824 responses,
90-123 organizations
30
Age comparisons (2 0 1 9 -2 0 2 1 )
*April to December of 2020
2019
Engagement Y ounger
than 25
Level
25-34
2020*
35-44
45-54
Older than Y ounger
54
than 25
25-34
35-44
2021
45-54
Older than Y ounger
54
than 25
25-34
35-44
45-54
Older than
54
Engaged
49.7% 51.5% 59.3% 62.1% 66.4% 53.3% 53.5% 61.5% 66.2% 70.0% 49.8% 52.4% 60.6% 64.9% 69.7%
Almost Engaged
23.4% 22.8% 22.7% 20.3% 18.6% 23.9% 22.8% 21.8% 19.1% 16.3% 21.6% 23.2% 21.0% 20.1% 16.8%
Indifferent
11.1% 12.7% 9.4%
9.4%
7.4% 11.5% 12.8% 9.2%
7.6%
7.5% 12.6% 11.5% 9.7%
7.9%
6.8%
Disengaged
15.8% 13.0% 8.7%
8.3%
7.5% 11.3% 10.9% 7.5%
7.1%
6.2% 16.0% 12.8% 8.7%
7.1%
6.7%
n=3,221-17,801 responses,
54-88 organizations
McLean & Company © | 2022 Employee Engagement Trends
n=3,583-10,410 responses,
42-63 organizations
n=6,439-24,292 responses,
69-116 organizations
31
W ork style comparisons (2 0 1 9 -2 0 2 1 )
Engagement Level W ork S tyle
Engaged
Almost Engaged
Indifferent
Disengaged
Legend for year
over year change:
2019
2020*
2021
N et change (20192021)**
Onsite
55.3%
61.4%
59.7%
+ 4 .4
: Increased
Remote/hybrid
65.4%
69.4%
60.7%
-4 .7
: Decreased
Onsite
23.1%
21.6%
21.8%
-1 .3
Remote/hybrid
17.4%
15.0%
19.6%
+ 2 .2
: Similar
(< =0.5%
difference)
Onsite
10.3%
8.5%
9.0%
-1 .3
Remote/hybrid
8.6%
9.1%
10.1%
+ 1 .5
Onsite
11.4%
8.5%
9.6%
-1 .8
8.6%
6.5%
9.6%
+1
Remote/hybrid
McLean & Company © | 2022 Employee Engagement Trends
n=3,908-9,076
n=1,353-6,418
n=6,893-12,449
responses,
responses,
responses,
16-20 organizations 12-16 organizations 20-23 organizations
*April to December of 2020
** Percentage point difference
32
Organiz ation siz e comparisons (2 0 1 9 2021)
*April to December of 2020
2019
Engagement
Level
Small
Medium
2020*
Large
Small
Medium
2021
Large
Small
Medium
Large
(< =250
employees)
(251-1,000
employees)
(> 1,000
employees)
(< =250
employees)
(251-1,000
employees)
(> 1,000
employees)
(< =250
employees)
(251-1,000
employees)
(> 1,000
employees)
Engaged
61.3%
57.6%
54.9%
64.0%
60.4%
62.6%
63.2%
59.3%
59.9%
Almost Engaged
20.3%
22.5%
22.5%
19.8%
20.9%
20.1%
20.4%
21.3%
20.2%
Indifferent
9.3%
10.0%
11.0%
9.2%
9.5%
8.8%
7.9%
10.2%
9.6%
Disengaged
9.1%
9.8%
11.6%
7.0%
9.2%
8.4%
8.5%
9.2%
10.4%
n=5,430-60,428 responses,
27-46 organizations
McLean & Company © | 2022 Employee Engagement Trends
n=3,005-32,901 responses,
20-25 organizations
n=4,511-97,141 responses,
38-41 organizations
33
London, ON
Corporate Headquarters
345 Ridout Street North
London, Ontario, N6A 2N8
McLean & Company is the trusted partner of HR and leadership professionals around the
world.
Our memberships are designed to provide what you need to drive the organization forward –
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When you pair our comprehensive resources with our collaborative services, there's nothing
between you and your goals. As a partner, we listen first to understand your situation, then
guide you through each step of the way so you get where you want to be, faster and with
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At McLean & Company, we’re passionate about empowering leaders like you to shape a
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34
McLean & C ompany offers various levels
of support to best suit your needs
D IY T oolkit
G uided
Implementation
“Our team has already made this
critical project a priority, and we
have the time and capability, but
some guidance along the way
would be helpful.”
“Our team knows that we need to
fix a process, but we need
assistance to determine where to
focus. Some check-ins along the
way would help keep us on track.”
W orkshop
C onsulting
“We need to hit the ground
running and get this project
kicked off immediately. Our team
has the ability to take this over
once we get a framework and
strategy in place.”
“Our team does not have the time
or the knowledge to take this
project on. We need assistance
through the entirety of this
project.”
D iagnostics and consistent frameworks are used throughout all four options.
McLean & Company © | 2022 Employee Engagement Trends
35
Employee Engagement C oaching
Equip your leaders with everything they need to succeed with engagement action planning. Our trained coaches
work one on one with your leaders in a confidential environment to accelerate their confidence, self-awareness, and
development.
How It W orks
U nderstand their team’s Engagement Report
and prepare for their team discussion.
This virtual coaching is available for groups of 10+ leaders in your
organization. After completing McL ean & Company’s Employee
Engagement Survey, each leader will receive three 50 minute 1:1
sessions with a trained coach.
Feel clear and confident about how to act on
Engagement Report results.
This four month program can be supplemented with additional
sessions in year two for an additional fee. This coaching is offered to
clients that use our Employee Engagement Survey.
Increase self-awareness and identify their role
in improving team engagement.
Engagement
S urvey
YEAR 1
When survey launches
S ession 1
S ession 2
S ession 3
YEAR 2*
Option A: 3 additional coaching sessions based on 2nd year
engagement survey results.
Within 2 weeks of results being
provided to leaders
McLean & Company © | 2022 Employee Engagement Trends
After team focus groups
(or about 4 weeks later)
3 months after
Session 2
Option B: Further leadership coaching based on the results of a 360feedback survey.
Coaching program fees are billed annually
Build a Data-Driven
Strategy Using
F ull-S ervice
D iagnostic Programs
Improve Employee
Experience and HR Processes
Employee Engagement
Move beyond measuring job satisfaction with a comprehensive view of engagement.
McLean Employee Experience Monitor
Evolve to leader driven engagement with a real time dashboard and results.
N ew Hire S urvey
Ensure recruiting and onboarding programs are effective by surveying new employees.
Employee Retention Pulse S urvey
Identify warning signs for regrettable turnover.
D iversity, Equity & Inclusion Engagement Pulse
Take a thoughtful approach to mobilize inclusion efforts across your organization.
Employee Exit S urvey
U nderstand why people leave the organization to proactively retain top talent.
360 F eedback
Empower employees with a holistic view of their performance to prioritize development.
Optimiz e the HR
D epartment for S uccess
HR S takeholder Management S urvey
Align HR initiatives with business strategy and stakeholder needs.
McLean & Company © | 2022 Employee Engagement Trends
HR Management & G overnance
Improve HR’s core functions and drive project success.
37
L eadership M em bership
The Leadership Membership Difference
Th is m em b ersh ip will give yo u th e to o ls
yo u need to p ush yo ur H R dep artm ent
furth er, faster. Co m p lete m ajo r p ro jec ts
with th e h elp o f a dedic ated Ex ec utive
Adviso r wh o is a fo rm er H R leader.
You’ll get a dedicated Executive Advisor, who is a former HR leader with
deep experience across many research areas. They will help you identify
strategic initiatives, prioritize projects, mitigate challenges, direct you to
the relevant research or subject matter experts, and keep you on track. We
recommend you meet at a minimum quarterly for a touch point, in addition
to the unlimited advisory calls while working with our SME advisory team,
with flexibility to leverage additional touch points and select advisory calls
with your Executive Advisor as you work toward delivering key initiatives.
Boost your own development with one 360 Feedback personal evaluation,
including one debrief session and a separate development planning
session.
Your choice of one ticket to McLean & Company’s Signature Conference
or one ticket to our virtual Elevate HR strategic leadership development
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ticket could be transferred to a colleague.
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Leverage the expertise of fellow senior HR leaders in Q uarterly
Leadership P eer to P eer Roundtables. These 60 minute, facilitated
discussions are an opportunity to network and collaborate in an open,
honest, and inclusive virtual space.
Save money and obtain peace of mind from our HR technology vendor
management and contract review services. This helps you assess,
manage, and reduce costs while strengthening vendor relationships.
38
Co unselo r Seat Servic es
The Counselor Membership Difference Features:
You’ll get a dedic ated Ex ec utive Co unselo r wh o is a
fo rm er Senio r H R Exec utive and h as b een in yo ur sh o es.
You will benefit from two online advisory sessions throughout the year
(along with unlimited scheduled and ad hoc phone calls), which integrate
your Executive Counselor as a trusted part of your professional support
network. U se these meetings to cover anything you’d like, from prioritizing
your own development to working through a project.
Your Executive Counselor can help you navigate board or executive-level
challenges and prepare for meetings.
L everage yo ur perso nal Exec utive Co unselo r to m ake yo ur p erso nal
and p ro fessio nal develo p m ent a p rio rity.
Your customized Personal Leadership Development Plan created with your trusted
Executive Counselor will link to your personal and organizational goals and values.
You’ll develop a custom, authentic Leadership Brand that allows you to thrive and better
market your unique value proposition.
P lus all th e b enefits o f a L eadersh ip M em b ersh ip suc h as:
You’ll get access to cutting edge IT research via our IT division, Info Tech
Research G roup.
Your dedicated Executive Counselor will provide a high-touch-point,
customized experience to help you develop yourself and your team
while increasing your personal and functional strategic impact. The
McLean Membership serves your firm; the Counselor membership
serves you personally.
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N etwork and collaborate with fellow senior HR leaders in Q uarterly Leadership P eer to
P eer Roundtables.
Your choice of a ticket to McLean & Company’s Signature Conference or to our virtual
Elevate HR strategic leadership development course for a total of two tickets.
Protect your organization and save money with expert HR technology contract review and
price benchmarking & negotiation.
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D evelop managers and your
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solutions
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with our varied, interactive,
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S ample topics include:
McLean
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•
Master the 3i’s of Employee
Engagement
•
Build High-Performing Teams
•
Master Difficult Conversations
•
Emotional Intelligence
in Leadership
•
Lead Through Change
•
Manage Remote Teams
•
Give Effective Feedback and
Coaching
•
Systems Thinking
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