Employee engagement strategies are changing rapidly as organisations navigate shifting workforce expectations, hybrid models, global political changes and purpose-driven cultures. While the employee engagement definition once centred on satisfaction and productivity, today’s organisations recognise that engagement is deeply intertwined with wellbeing, belonging, and growth.
Employee engagement is, according to Gallup, ‘the involvement and enthusiasm of employees in both their work and workplace.’ It is this enthusiasm and involvement in their work that enable highly engaged employees to outperform less engaged employees in businesses that are critical to an organisation’s success. Gallup found that in 2024, 21% of employees across the globe were described as engaged, down from an all-time high of 23% in 2023. That only highlights the continued importance of prioritising and implementing practices and policies that for
In our World of Work Trends 2025 report, we found that transforming the employee experience is crucial for blue-collar workers in a way that had previously been underestimated, highlighting that employee experience is more important than ever.
In this article, we explore the top employee engagement trends shaping the future of work and how leading companies are utilising more holistic employee engagement models to drive performance and maintain employee retention.
What is employee engagement
Understanding the definition of employee engagement is essential before exploring the trends that impact this critical metric. Employee engagement is when employees feel a strong, emotional connection to their work and the company. It is more than just being happy or content in their work; employee engagement relates more to how deeply an employee feels invested in contributing to an organisation’s overall business success. It is with this deeper connection that we see an employee’s emotional commitment, cognitive focus and behavioural dedication to their workplace.
Purpose and meaning are at the core of it all
The desire to work for an organisation with a clear commitment to creating a ‘positive impact’ on the world is not new. In our 2023 World of Work Trends report, we found that employees are no longer driven solely by financial rewards, but rather by a sense of purpose. Harvard Business Corporate Learning also found that 52% of job seekers would not accept a job offer if they did not agree with a company’s values or purpose.
High employee engagement is increasingly linked to a strong sense of purpose, and organisations have taken this information to help them rebuild how they communicate their values to potential and current employees. Employees who believe their role makes a positive impact are significantly more likely to be committed and motivated. Organisations are embedding purpose into everyday work through values-driven leadership, transparent communication, and societal impact initiatives.
Aligning purpose with performance is a key differentiator in today’s employee experience and engagement strategies.
Flexibility is no longer negotiable
The last five years of work have been marked by disruption, with many organisations rethinking how they allow their people to structure their time. The COVID-19 pandemic ushered in a new era of flexibility that employees readily adopted, as evidenced by their increased employee engagement scores. When employees have more flexibility in their schedules, they tend to be more engaged.
Employees who feel they have control over when and how they work report higher employee engagement, improved wellbeing, and stronger performance. Yet, poor employee engagement often correlates with rigid scheduling and a lack of autonomy. In response, many companies are reimagining roles, workflows, and expectations to increase adaptability.
While flexibility may have seemed like a pandemic-era trend, its impact on employee wellbeing proves that it is untrue. It is no longer a perk but a necessity. Flexibility is not just about remote work; it’s about trust, choice, and designing roles around people, not just processes.
Wellbeing as a strategic pillar
The impact of wellbeing extends beyond how people feel, encompassing the number of sick days a person takes, their performance at work, burnout, and the likelihood of leaving the organisation. Wellbeing is interlinked with employee engagement in a way that should not be underestimated.
When comparing employees who are engaged but not thriving with those who are engaged and thriving, Gallup found that those who aren’t thriving report the following risks:
- 61% had a higher likelihood of burnout often or always;
- 48% higher probability of daily stress;
- 66% higher likelihood of daily worry;
- Double the rate of daily sadness and anger.
Research like this shows that burnout, stress, and mental health challenges continue to be critical issues affecting employee engagement. Companies that integrate wellbeing into their culture, not as a separate initiative but as a strategic driver, are seeing measurable improvements in retention and performance.
Organisations that aim to enhance their employee wellbeing efforts will adopt a holistic approach by examining career wellbeing, social wellbeing, financial wellbeing, physical wellbeing, and community wellbeing. This can be achieved through the offering of mental health resources, financial health resources, and more.
Wellbeing is being redefined as a business-critical investment, and organisations that are working towards improving their offerings are looking at it holistically, from psychological safety and manageable workloads to access to mental health resources.
Skills development and career progression
Career stagnation is a leading cause of poor employee engagement. A 2022 study found that 74% of employees feel they aren’t reaching their full potential at work due to a lack of available development opportunities, indicating that organisations that do not invest in skills development for their people may be losing out.
In contrast, companies that foster continuous learning, transparent growth paths, and internal mobility report stronger loyalty and discretionary effort, leading to enhanced employee engagement scores.
Organisations that want to integrate skills development into their workplace can consider microlearning platforms, coaching cultures, and cross-functional development experiences, as these have been shown to help employees see a future within the business, rather than outside it, thereby improving their employee engagement.
Final thoughts
Employee engagement trends are in constant evolution, and for forward-thinking organisations, this evolution occurs alongside the workforce. Successful organisations are investing in people-first, data-driven and purpose-led strategies rather than relying on outdated practices and policies. These companies are focusing on what matters most – their people, and this drives them to constantly improve their policies to build a work culture that is successful and sustainable.