In its latest annual update, Gallup delivered findings that many across the business world are seeing as a wakeup call: U.S. employee engagement fell to a 10-year low in 2024, with only 31% of employees feeling engaged at work. Gallup notes that this continues a mounting trend of employee disconnection, most acute for Gen Z workers and those in selected industries. If left unaddressed, this could pose a serious challenge for companies nationwide, particularly as Gen Z’ers become a larger portion of the workforce.
Why employee engagement is critical for strong business performance
Employee engagement—which can include employees’ active interest in and connection to their work and workplace—creates impacts that reverberate far beyond office morale. It can affect the company’s productivity, product or service quality, customer experience, employee retention, and profitability. Previously, Gallup noted that lack of engagement and active disengagement among U.S. workers caused lost productivity amounting to about $1.9 trillion nationwide. A study from Harvard Business Review likewise found that over 90% of business leaders reported better performance by engaged employees, and agreed that employee engagement is key for business success.
The underlying causes of declining engagement
This decline in engagement is likely the result of a number of compounding factors, with each company facing its own unique hurdles. Across industries, business has seen significant upheaval in recent years—from corporate restructuring to the adoption of new technologies and the rise of dispersed teams. As professionals navigated these changes, many have struggled to find their footing. This has led some to a state of burnout, lacking critical ingredients like connection with coworkers and a sense of purpose.
3 steps to foster active thriving in the modern workplace
HR professionals and business leaders face a challenge that feels daunting. However, within it is the opportunity to rethink their employee engagement strategy and reach for new heights as a workforce. To start igniting this transformation, consider these three actionable strategies:
1. Empower employees’ growth and engagement with game-based learning. One of the most powerful ways to inspire employees to invest in their work is to first invest in employees, particularly in their learning and growth. In a recent Kahoot! Workplace Culture Report, 44% of frontline workers said they would stay with their employer an extra decade with better training and career support. Office workers also see learning as a must, with our research showing that 46% expect their skills to become obsolete in 5 years or less.
Still, while the desire to learn and grow is clear, nearly half find corporate training boring. Enter: game-based learning—an increasingly popular method that multiplies engagement through the power of friendly competition. Game-based learning can also offer built-in opportunities for employee recognition and rewards, which can make employees feel more valued. In fact, 90% of employees say recognition would boost their motivation to learn and upskill.
2. Cultivate inclusive team dynamics. If your goal is to encourage employees to participate more actively, ensure the company gives everyone an easy, accessible, and engaging way to contribute. This can be especially important in dispersed teams, or in companies that include both frontline and desk-based workers. Lowering the barrier of entry to workplace discussions is also critical for Gen Z knowledge workers, 90% of whom report experiencing social discomfort at work.
Begin breaking down these barriers by experimenting with activities that foster social connection across geographies. While it’s important to tailor activities to the interests of your team, activities that involve friendly competition are often a good place to start. Activities to spark teamwork and collaboration can also support larger team and company goals, such as hackathons and brainstorming sessions.
3. Create informed and aligned teams with real-time feedback loops. A critical factor in employee engagement is clarity and alignment of both purpose and strategy. Employees need to feel confident they understand what they’re working toward and what’s expected of them. With a clear goal ahead, employees feel more empowered to take action. By adopting a more interactive format for meetings, presentations, townhalls, and the like, management can continuously gauge employees’ understanding—whether of tactical work processes or broader company goals. This can enable HR and other leaders to identify knowledge gaps and adjust their internal communication as needed, ensuring everyone is on the same page and working together toward the same goals.
Armed with these strategies, any organization can begin to transform disengaged employees into active and motivated contributors. If you believe, as I do, that employees are the secret sauce of any successful company, there could be few more important goals to set for 2025.
Check out our solutions to boost employee engagement and business performance today!
*This blog post was originally published as a byline in Learning News.
