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 fell to 31% in late 2024 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 attraction and retention difficulties.
Because employee engagement initiatives are generally low-cost, these strategies are a popular route for employers to improve employee retention and productivity without excessive spending. The 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: 8 Employee Engagement Mistakes to Avoid in 2025.
