518-373-4111
Employee engagement refers to an employee’s emotional connection and commitment to their organization and its goals. It is often reflected in their loyalty, motivation, and willingness to advocate for the organization. Engagement is a critical factor in driving retention and productivity.
According to a report from Gallup published in early 2025, the percentage of engaged employees declined to 31% in late 2024, down from 33% in 2023. It was the lowest level of employee engagement recorded in a decade. Previous years saw high levels of employee quits, while employees are now more likely to stay in their current jobs, even if they are not satisfied with their role or their employer. This means employers may face lower productivity and a damaged workplace culture, which can lead to difficulties in attracting and retaining talent.
Because employee engagement initiatives are generally low-cost, these strategies are a popular route for employers to enhance employee retention and productivity without incurring excessive expenses. Zywave’s 2025 State of the Market Survey found that “focusing on employee engagement” was the number one strategy employers are exploring to improve attraction and retention.
This article provides an overview of engagement challenges in 2025 and discusses common mistakes to avoid.
Employee Engagement Challenges in 2025
A mix of economic uncertainty, shifting workplace dynamics, and changing employee expectations drives rising levels of disengagement. Researchers at TalentLMS found that in 2025, more than half (54%) of U.S. workers are experiencing a phenomenon called “quiet cracking,” in which they feel some degree of unhappiness at work that leads to disengagement. Individuals who suffer from this tend not to go the extra mile, pitch in with new ideas, or attend team or company events. Many also have a strong desire to quit their jobs.
The root causes of this trend are often job insecurity and a lack of professional development. Without training, mentorship, or clear career paths, employees may feel stagnant, overlooked, or unprepared for future roles.
Gallup also cites several issues behind the drop in engagement, including the following:
- Rapid organizational change
- Challenges adapting to hybrid and remote work models
- Shifting customer expectations
- Ineffective or outdated performance management systems
Successful strategies encourage employees to find meaning in their work and foster a more profound commitment to the organization. However, many employers neglect to pursue the initiatives that will meet the needs of their workers.
Mistakes to Avoid When Building Engagement Strategies
Many employers are seeking ways to reengage their teams, but even well-intentioned efforts can backfire if not executed correctly. The following are eight mistakes to avoid when developing engagement strategies:
1. Not providing growth opportunities
People are naturally motivated by progress, and the best performers will likely want to grow. Without a clear path forward, they might feel stuck and undervalued. Providing mentorship, offering to spearhead projects, and encouraging employees to train for new roles or responsibilities can help employees stay energized and see a future within the organization.
2. Failing to establish clear expectations
Defining what engagement looks like within an organization helps employees understand what is expected of them. While surveys might show disengagement, managers can’t take meaningful action without specific and measurable benchmarks. Having well-defined standards can help workers see how their work contributes to an organization’s success while allowing leaders to easily recognize good performance.
3. Not modeling engagement at the leadership level
Employees look up to management to set the tone for what behaviors are valued in an organization. When leaders demonstrate passion, involvement, and commitment, employees are likely to mirror that behavior. A top-down approach demonstrates that engaged behavior is not only encouraged but also expected.
4. Failing to share impactful stories
Storytelling is a powerful tool for emotionally connecting employees to their work. Publicly sharing authentic stories of how teams overcame challenges together or how employees contributed to a client’s success can foster pride and reignite a sense of purpose.
5. Neglecting employee feedback
Surveys, exit interviews, and skip-level meetings are critical for gauging employee engagement. Getting feedback demonstrates that an employer is serious about learning what they’re doing right and what areas could be improved. Employees who see their feedback acted upon are more likely to stay loyal and engaged.
6. Overlooking employees’ hard work
Employee recognition should be part of the culture, not an occasional gesture. Publicly acknowledging contributions helps motivate employees and drives better performance. Celebrating even small accomplishments through shout-outs or handwritten notes can boost morale and inspire them to continue working hard.
7. Not hosting social events
A strong sense of community is a pillar of engagement. Holiday parties, summer outings, team celebrations, virtual meetups, and other social events provide employees with opportunities to engage in genuine conversations that can foster trust and deepen relationships.
8. Failing to empower managers
Managers are the frontline of engagement, but without the proper tools and resources, they may struggle to boost engagement. Employers can support them by providing access to feedback, allocating budgets for rewards programs, and offering training in communication, coaching, or mentorship.
Employer Takeaway
Employee engagement is crucial for retaining top talent and enhancing productivity. While practical approaches to driving engagement may vary by organization, avoiding pitfalls can lay the foundation for a more engaged and productive workforce.
© 2025 Zywave, Inc. All rights reserved.
How to Gauge Employee Engagement Effectively
If you’re looking to improve your engagement strategy, or you’re unsure whether you need to, how do you conduct an unbiased assessment of your employees’ level of satisfaction? A cultural review may be the answer. Conducting an internal survey of your employees can provide some insight, but many are reluctant to be completely honest when responding to a supervisor or colleague. A non-biased third-party survey will have greater success in getting in-depth feedback on what your company is doing well, and what areas need to be the focus of improvement.
Fill out the brief form below to learn more.
