The latest findings from HR.com's Research Institute present a nuanced view of employee engagement trends in 2025, showing a notable increase from 23% in 2022 to 30% this year. Despite this progress, the study, titled 'State of Employee Productivity and Engagement 2025', reveals that more than 40% of HR professionals still classify the average employee as poorly engaged. This disparity highlights the critical need for organizations to delve beyond superficial engagement tactics and focus on foundational elements such as culture, leadership, and the strategic application of technology.
Key insights from the report suggest that companies achieving higher engagement levels are five times more likely to measure engagement more frequently than quarterly. However, a mere 15% of organizations adhere to this practice. The study identifies organizational culture as the primary driver of engagement, yet only 45% of companies continuously work on improving their culture, with even fewer investing in engagement enhancement programs or manager training on engagement strategies.
Conversely, organizations where managers and leaders prioritize engagement report significantly better outcomes, with over 70% of these leaders providing regular feedback, building trust, and acting on employee input. The report also sheds light on the potential of artificial intelligence (AI) in boosting engagement and productivity, noting its current use in 36% of organizations for productivity-related tasks. AI's role in alleviating administrative burdens could pave the way for more meaningful employee interactions, according to the findings.
Debbie McGrath, Chief Instigator at HR.com, emphasizes the importance of viewing engagement as a continuous strategy rather than a one-time metric. The study underscores the necessity for investments in leadership development, cultural improvement, and innovative tools to sustain and enhance employee engagement levels.
