# Employee Engagement Declining Across the Globe
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-03-22
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Global Uncertainty Driving Employee Engagement Decline, Aon
Meta Description: Discover how global uncertainty is impacting employee engagement levels, as revealed in the latest Aon Hewitt survey. Learn about the regional differences and
URL: https://financedigest.com/employee-engagement-declining-across-the-globehtml

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Aon Hewitt survey finds global uncertainty driving employee skepticism

Globally, employee engagement declined for the first time since 2012, according to a new report from Aon Hewitt, the talent, retirement and health solutions business of [Aon plc](http://www.aon.com/default.jsp) (NYSE:AON).

According to Aon Hewitt’s analysis of more than five million employees at more than 1,000 organizations around the world, employee engagement dropped from 65 percent in 2015 to 63 percent in 2016. Less than one quarter (24 percent) of employees are highly engaged and 39 percent are moderately engaged.

“The rise in populist movements like those in the U.S., the U.K. and other regions is creating angst within organizations as they [anticipate the potential](https://www.financedigest.com/grab-and-go-containers-market-anticipated-to-have-positive-potential-during-the-forecast-period-fmi.html "Grab and Go Containers Market anticipated to have positive potential during the forecast period.: FMI") for a decrease in free labor flow,” explained Ken Oehler, Global Culture & Engagement Practice leader at Aon Hewitt. “Along with rapid advances in technology that are increasingly threatening job security, fewer employees are engaged and we [expect this trend](https://www.financedigest.com/microbial-coagulants-market-2022-expectations-growth-trends-highlighted-until-2028.html "Microbial Coagulants Market 2022 Expectations & Growth Trends Highlighted Until 2028") to continue.”

**Employee Engagement Since 2011**

201663%201565%201462%201360%201258%201159%

According to Aon Hewitt, improving engagement can pay dividends. Aon Hewitt research shows that a 5 point increase in employee engagement is linked to a 3 point increase in [revenue growth](https://www.financedigest.com/blood-bag-tube-sealer-market-to-witness-excellent-revenue-growth-overview-emerging-trends-and-forecast-by-2028.html "Blood Bag Tube Sealer Market to Witness Excellent Revenue Growth, Overview, Emerging Trends and Forecast by 2028") in the subsequent year. [\[1\]](#_ftn1)

“As engagement falls, businesses can expect greater turnover, higher absenteeism and lower customer satisfaction—all [factors that will significantly contribute](https://www.financedigest.com/factors-contributing-to-negligent-security-situations.html "Factors Contributing To Negligent Security Situations") to poor financial performance,” stressed Oehler.

**Regional Differences**

Aon Hewitt’s [analysis](https://www.financedigest.com/mycology-immunoassays-testing-market-growth-share-industry-dynamics-top-trends-and-regional-analysis-forecast-to-2027.html "Mycology Immunoassays Testing Market Growth Share, Industry Dynamics, Top Trends and Regional Analysis Forecast to 2027") found regional variations in engagement were driven by regional and country-specific economic, political and cultural differences.

According to Aon Hewitt, engagement for employees in [Asia Pacific](https://www.financedigest.com/the-asia-pacific-alopecia-treatment-market-to-throw-its-innovation-based-weight-around.html "The Asia Pacific Alopecia Treatment Market to throw its innovation-based weight around") saw the biggest decline, dropping from 65 percent in 2015 to 62 percent in 2016. Rewards and recognition programs were ranked as a [top opportunity](https://www.financedigest.com/road-rail-vehicles-market-analysis-trends-top-manufacturers-share-growth-statistics-opportunities-and-forecast-to-2027.html "Road-Rail Vehicles Market Analysis, Trends, Top Manufacturers, Share, Growth, Statistics, Opportunities and Forecast to 2027") to improve engagement by employees in Asia.

Latin [America saw the largest](https://www.financedigest.com/north-america-to-emerge-as-largest-market-for-softball-equipment-through-2026.html "North America to Emerge as Largest Market for Softball Equipment Through 2026") increases in engagement, growing from 72 percent in 2015 to 75 percent in 2016. While not all countries in Latin America saw [rising engagement levels](https://www.financedigest.com/uk-new-car-sales-rise-in-november-fail-to-zoom-past-2019-levels-smmt.html "UK new car sales rise in November, fail to zoom past 2019 levels- SMMT"), all countries remain above the global engagement rate. Mexico saw a four percentage point decline in engagement in 2016 (79 percent in 2015, compared to 75 percent in 2016), while engagement for workers in Brazil rebounded eight points to 77 percent in 2016 after falling the previous year. Amidst the [political and economic](https://www.financedigest.com/stocks-tumble-globally-on-raft-of-economic-political-worries.html "Stocks tumble globally on raft of economic, political worries") volatility and uncertainty in Venezuela, engagement was down 11 points to 69 percent.

**Region****2016****2015**Asia Pacific62%65%Latin America75%72%[North America](https://www.financedigest.com/north-america-residential-wood-flooring-market-expansive-coverage-on-the-latest-trends-and-developments-in-the-market.html "North America Residential Wood Flooring Market – Expansive Coverage on the Latest Trends and Developments in the Market")64%65%Europe58%60%Africa61%59%

**[Top Global](https://www.financedigest.com/benzylamine-market-top-key-players-latest-trends-regional-insights-and-global-industry-dynamics-by-2026.html "Benzylamine Market Top Key Players, Latest Trends, Regional Insights and Global Industry Dynamics By 2026") Engagement Opportunities**

According to Aon, [rewards and recognition](https://www.financedigest.com/why-is-employee-reward-and-recognition-so-important.html "Why is employee reward and recognition so important?") ranked as the strongest engagement opportunity this year, a significant jump from ranking third in 2016.

“Leaders should understand that this actually reflects employees’ perceptions of fairness. While organizations may not be able to make sweeping changes to compensation, it is [important](https://www.financedigest.com/u-s-inflation-outlook-brightens-as-import-prices-fall-consumer-sentiment-rises.html "U.S. inflation outlook brightens as import prices fall, consumer sentiment rises") that they take steps to address these sentiments.”

Not surprisingly, senior [leadership strength and the degree of forward thinking decision-making was another top](https://www.financedigest.com/top-5-tips-for-great-leadership.html "Top 5 Tips for Great Leadership") priority. “The ability for leaders to have the personal sensitivity required to lead people and their [organizations to growth](https://www.financedigest.com/the-pharmaceutical-isolators-market-to-get-filtered-through-organic-digitized-growth.html "The Pharmaceutical Isolators Market to get filtered through organic digitized growth") is paramount in this intensely changing environment,” added Oehler.

To learn more about Aon Hewitt’s Trends in Global Employee Engagement report, visit: [www.aon.com/engagement17](http://www.aon.com/engagement17)


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