2024 was not kind to employee engagement. Gallup’s latest report paints a grim picture—only 31% of U.S. employees are engaged at work, the lowest level in a decade. If you’re an HR leader, you probably feel that dip in ways that don’t require a statistic to confirm.
And with 17% of employees actively disengaged, it’s clear many folks aren’t just unhappy—they’re broadcasting their dissatisfaction to co-workers and on their social media channels. And that can quickly spiral into a vicious cycle.
What’s Causing the Drop in Employee Engagement?
The “why” behind these numbers is a complicated but familiar story. Engagement has been trending downward since peaking in 2020 (back when we were clapping for healthcare workers and baking endless loaves of banana bread).
A few of the major culprits include:
- Return to office challenges: While flexible work arrangements have proven effective—workers prefer them and they help companies attract top-tier talent—the shift back to the office can disrupt team cohesion and, perhaps counterintuitively, hurt company culture.
- Manager burnout: A manager can make or break a team, and with only 31% of managers feeling engaged themselves, it’s no wonder their teams are suffering. Managers account for 70% of the variance in team engagement.
- Performance management feels broken: Most employees, and even more HR leaders, don’t think their performance management systems work, making it hard to clarify expectations, align teams, recognize wins, and develop employees.
- Organizational change overload: A long tail effect of the Great Resignation has been shifts in organizational structures and priorities—and they’re often poorly communicated. Employees were left feeling stuck and unsure of what’s expected, and wanting clarity more than ever.
Workers under 35 have seen the most pronounced disengagement. Even with less clarity about expectations, materials to succeed, recognition, and growth opportunities all around, their struggle has been steeper. It has some wondering if we’re headed to a Great Resignation 2.0.
It’s a tough dynamic, but it can be fixed.
How HR Leaders Can—and Should—Step In On the Employee Engagement Crisis
Engagement isn’t a magical switch you can just flip (but wouldn’t that be nice?). Engaging employees means taking regular, small but meaningful actions. When done consistently, it will add up to major results. Here’s a roadmap to revitalize engagement in your workforce—and it starts with understanding what employees need most.
1. Offer Meaningful and Tailored Benefits
Benefits are more than just perks—they’re strategic tools that help you build engagement and improve workplace morale. But many organizations miss the mark by offering generic, uninspiring benefits packages that don’t reflect employee priorities. By tailoring benefits to your workforce, you show employees they’re valued—and feeling valued keeps teams engaged.
Action Tip: Conduct surveys, focus groups, and even town halls to understand what matters most to your employees. Consider creative, cost-effective options like flexible summer hours or standing desks.
2. Rebuild Clarity in Job Expectations
Gallup’s research points to a drop in employees who know what’s expected of them. When employees understand the expectations and priorities, they’re empowered to be more productive. Clear expectations lead to a more engaged workforce.
Action Tip: Start by revisiting job descriptions and updating them with defined competencies and behaviors. Then, work with managers to set clearer priorities and goals during regular check-ins.
3. Make Sure Your People Feel Cared For
Engaged managers create meaningful connections, and that energizes teams. When you show you care, engagement and retention soar. By showing genuine care, you build a company culture that drives business success and impacts the bottom line.
Action Tip: Equip managers to foster genuine connections in addition to just productivity check-ins. Give managers the tools and training to connect with their teams.
4. Double Down on Growth and Development
Fewer than one-third of employees feel encouraged to grow in their roles, and Gen Z has been hit hardest. When employees are encouraged to grow, connect on a human level, and see how their contributions align with the company’s mission, motivation becomes personal. This is particularly true for employees under 35—where the right mix of development opportunities and purpose-driven work can turn a job into a career.
Action Tip: Invest in flexible, personalized feedback and development plans that evolve with organizational priorities and employee aspirations. Help employees connect their career development to a broader mission and purpose.
Ready to Revamp Engagement at Your Organization?
The bswift Engagement Agency can help you tackle these challenges head-on. From activating leaders and managers to crafting personalized communication strategies, we help you simplify engagement and elevate impact.
Let’s create an employee experience that informs, empowers, and inspires.