5 Employee Engagement Trends to Look Out For in 2025

Employee engagement trends matter more than ever.

In the US alone, engagement levels in the workforce have hit an 11-year low, with almost 5 million people feeling less engaged than last year (Gallup).

An increasing number of employees lack clarity about their roles and responsibilities, they are not satisfied with the organization, or they feel disconnected from their company’s mission.

This is alarming, to say the least. But why is it happening? What can you do to prevent disengagement in your organization?

We consulted with HR experts to bring you the latest employee engagement trends, along with actionable tips you can start implementing today.

The importance of understanding employee engagement trends

In the last couple of years, we witnessed recession, hiring freezes, and budget cuts–all of which contributed to the growing tension between employers and the workforce. Work relationships have become highly transactional and dehumanized, and that’s a problem. A huge one.

When people feel like their employer doesn’t care about them and sense they are disposable, it’s natural that they won’t care much about their work.

Employee engagement hits an 11-year low (Gallup)

Employee engagement trends are a reflection of the shifting needs and expectations of the workforce. Of course, some employee needs are evergreen. Everyone wants to feel respected, appreciated, seen, and heard. However, other employee engagement trends emerged recently due to the larger forces at play (e.g., market changes, new work philosophies, the development of the creator economy).

One big shift we’re seeing in employee engagement is the push for more flexibility and remote work options. After the pandemic and with the way markets have changed, people really value the ability to work from wherever they’re most productive, whether that’s at home, in the office, or a local coffee shop.

It’s become clear that giving employees this kind of freedom helps them balance their work and personal lives better, and in turn, keeps them more engaged and motivated. More on that a bit later.

Levels of employee engagement

Being aware of employee engagement trends helps you identify antidotes to problems you might have within your organization. It also allows you to approach solving issues proactively, before it’s too late.

Gallup recognizes three levels of engagement:

• Actively disengaged employees: Frustrated or unhappy at work, typically in the state of quiet quitting, or showcasing absenteeism
  
• Not engaged employees: They do their job, but feel no connection to it, experience boredom, and stay with the company solely for the salary
  
• Engaged employees: Feel great about the work they do, have a sense of purpose, feel appreciated and seen

Ideally, you’d want all your employees to be in the third group–highly engaged at work.

Great CHROs know it’s important to keep a pulse on how your people feel, which is why they actively seek feedback and react timely to drops in engagement. This brings us to the first employee engagement trend for 2025.

1. Don’t assume, co-create with your employees

We all find it challenging to create connected workplaces, especially in a remote setting.

Consequently, employees struggle to find a sense of purpose and belonging. This comes from a broken system where the leadership team comes up with programs independently, completely siloed from employees.

The top employee engagement trend is not just another passing fad.

On the contrary, it’s about going back to basics.

If you’re running a company, it’s not long before you understand that the solution to broken engagement lies within your organization. The priority is to find a way to 1) truly listen to their employees and then 2) promptly act on their feedback.

Christina Santiago, SVP of Human Resources at Burpee, shared just how important it is to include employees in the conversation:

One thing that I’ve learned is that we don’t really know our employees. What I mean by that is that we don’t know their motivators. Sometimes, employers will do the classic cut-and-paste, thinking certain methods will work for everyone. The first step to implementing any program is to really get to know your people.

Employee surveys have been a trusted tool for discovering what your employees actually want and need. But how do you, as a CHRO, convince the rest of the leadership team to invest into something where ROI doesn’t feel as obvious?

Lysann Nikolopoulos, the HR Director at WBS TRAINING AG shared her thoughts at the latest Embrace HR Festival.

Instead of HR dictating actions and spending money on initiatives, Lysann focuses on gathering feedback directly from employees to co-create solutions. This approach ensures there’s a strong rationale behind the investment and that the program truly aligns with employee needs.

For example, instead of HR deciding on wellness initiatives like offering gym memberships or yoga classes, they can gather feedback through an employee wellness survey or focus groups to learn what employees actually want.

2. Rethinking work-life balance and flexibility

There’s plenty of employee engagement data that shows a gap between what employees want and what employers think they want.

Employees typically seek meaningful work, recognition, flexibility, career growth, and a sense of belonging. Employers, on the other hand, might assume that higher salaries, generic perks, or fun events are sufficient to boost engagement.

To bridge this gap, many companies are rethinking traditional work models. The 4-day work week, for example, has been gaining traction.

A recent study from Iceland, one of the largest trials of the 4-day work week to date, showed that productivity remained the same or even improved in most workplaces, while employee well-being increased significantly.

Similarly, companies like Microsoft Japan found that implementing a 4-day work week led to a 40% increase in productivity and a notable drop in electricity costs.

Maxime Bouillon, Co-founder & CEO at Archie, shared his thoughts on flexibility as an employee engagement trend:

Employees are placing a value on autonomy more than before. Providing flexible schedules has had a positive impact on maintaining high levels of engagement. It’s not about where people work from, but empowering them to perform at their best. For example, a top performer on our team found that they were most productive in the afternoons. There’s really no need for them to stick to a strict 9-to-5 schedule.

Benefits of such flexibility aren’t just anecdotal, they’re quantifiable. For HR leaders, paying attention to this employee engagement trend can help create a culture that recognizes that employees have important identities outside their job titles.

Here’s how some leading tech companies incorporated flexibility to ensure an upward employee engagement trend:

• Dell has implemented a program called “Connected Workplace”, which allows employees to choose their working hours and locations
• Netflix offers an unlimited paid time off policy, trusting employees to take the time they need to recharge without being restricted by a fixed number of days
• Asana implemented “No Meeting Wednesdays” to allow employees uninterrupted time to focus on deep work

3. Connecting with Gen Z and prioritizing diversity

Another employee engagement trend relates to the generational gap, specifically the needs and expectations of Gen Z.

Believe it or not, 3 in 4 managers find it difficult to work with Gen Z, listing their lack of discipline, communication skills, and lack of receptiveness to feedback as main issues. But we know it always takes two to tango.

Gen Z is often recognized for its strong skills in technology, pop culture, and community building. Many believe they have so much to offer, especially when it comes to driving innovation. But because of widespread stereotypes and a mismatch in worldviews, companies might resort to ageism in their hiring practices, whether intentionally or unintentionally.

Janina Kugel, Non-Executive Board Member, Senior Advisor and Author, shared in her column why it’s important for Boomers and Gen Z to talk to each other. She sheds a different light on Gen Z, emphasizing that professional ethics and behavior are more a question of character than generation:

It is always easy to look at another age group and then be surprised by them. Especially if you have different opinions. It doesn’t matter whether the others are younger or older. But what we tend to forget is that we were young ourselves once and will (hopefully) get older.

Kugel also touched upon the world Gen Z is growing up in. It’s a world that is going through multiple crises–geopolitical tensions, climate change crisis, economical uncertainty, and more:

These are fundamental questions, and so it is not surprising that some people are considering what this means for their own lives and what importance work (still) has under all these circumstances.

Deloitte research found that Gen Z employees and their managers have differing views on key topics like the importance of empathy, the impact of work on mental health, and how much work contributes to personal identity.

Instead of putting labels, you should try to understand where they are coming from and find a common ground to efficiently work together. Here are a few useful tips on how you can achieve that:

• Ask questions, don’t assume: Start conversations to understand what motivates them
• Focus on values, not labels: Provide what matters to them (e.g., work-life balance, mental health support)
• Practice active listening: Hear their perspective before responding
• Find common goals: Align on shared objectives rather than differences
• Stay open-minded: Be willing to adapt and learn from them as well

4. Addressing mental health and well-being the right way

Addressing mental health and well-being is a critical aspect of employee engagement, especially for 2025, as companies navigate the complexities of economic uncertainty, remote work, and changing employee expectations.

Modern employees expect employers to care about their well-being beyond just physical health. Acknowledging and supporting mental health has become a baseline expectation, particularly among younger generations.

This isn’t surprising, considering that Gen Z is more likely to experience a mix of imposter syndrome and burnout. In fact, Asana’s research shows that 70% of Gen Zers face these challenges.

So, what can you do about it? Why is this an important employee engagement trend?

Lucas Botzen, CEO & HR Expert at Rivermate, shared how the company responded once they noticed an increase in demand for mental health support:

It’s an important ingredient for employee engagement. We have taken initiatives in mental wellbeing and incorporated it into our engagement strategy by providing mental health days, access to counseling services, and fostering an open culture when it comes to mental health.

It’s time to normalize conversations about mental health by offering regular training and workshops. Try to encourage leadership to share their own experiences, and create a safe space for open dialogue.

Here’s what you can do:

• Include access to mental health professionals, therapy sessions, and digital mental health tools like Oliva as part of your health insurance package
• Introduce Employee Assistance Programs (EAPs) that provide counseling, financial advice, and other support services
• Allow flexible hours, remote work options, and mental health days to help employees manage stress and maintain a work-life balance
• Conduct regular check-ins and pulse surveys to understand employees’ mental health needs and concerns

Also, it’s extremely important to practice what you preach. If you say your company’s supporting the mental health of employees, yet you ask them to work overtime, it’s not long before you notice the drop in engagement. Encourage breaks and discourage the culture of being “always on”.

5. Internal mobility and micro-learning opportunities

Today’s employees are looking for ways to grow within their current organizations. Internal mobility allows them to advance their careers without the instability of changing companies. This option is particularly appealing in a shaky job market.

Additionally, people want more control over their career trajectories. With internal mobility programs, you can let them explore different roles within the organization. This increases employee retention in the long-term, and prevents people from feeling disengaged within their roles.

Supporting professional development is expected, but the preferred format seems to be changing a bit. Mary Zhang, Head of Marketing and Finance at Dgtl Infra, shared an interesting employee engagement trend–the expectation of having access to “micro-learning” opportunities:

A significant trend we’re noticing in employee engagement this year is the rise of “micro-learning” initiatives. We’ve observed that traditional long-form training sessions were losing their effectiveness, especially with our remote workforce. In response, we’ve implemented bite-sized, on-demand learning modules that employees can access anytime, anywhere.

This format has proved to be compelling even for employee training, shared Mary:

We’ve created a series of 5-minute video tutorials on various aspects of digital infrastructure, from cloud security basics to advanced data center optimization techniques. These micro-learning sessions are delivered through our company app, allowing employees to learn during short breaks or commutes.

Since implementing this approach, Dgtl Infra has seen a 40% increase in voluntary skill development participation and a 25% improvement in knowledge retention rates.

Final thoughts on employee engagement trends

A job of a modern CHRO is anything but easy. The role has evolved to a point where you take full ownership of crafting employee experiences, with the goal of increasing engagement and retention.

Moreover, you are the guardian of the company’s cultural values, and you need to make sure employees feel seen, heard, and appreciated.

Staying on top of employee engagement trends is not easy, but it gets easier with the right tools, processes, and support from the leadership team. To maintain employee engagement, you need to co-create with your employees and keep a pulse on what they need.

Honestly helps you continuously collect employee feedback so that you can turn it to action. With AI-powered insights, industry benchmarks, and ready-to-use questionnaires backed by science, you can finally understand your employees and create better work environments to keep them engaged.