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Why Employee Engagement Is Declining (And How to Fix It)

Posted by Lisa Stovall on Mon, Mar, 10, 2025

EEEnagementIf your employees seem less engaged than before, you’re not imagining it.

Gallup’s latest data confirms it — engagement is at its lowest in a decade. Only 31% of employees feel engaged, while 17% are actively disengaged (aka plotting their escape or just mentally napping at their desks).

People are disconnected, unmotivated, and questioning if their work even matters.

The result? Quiet quitting, loud quitting, or just mentally checking out while their bodies go through the motions.

And here’s the kicker — it’s not just about money.

Employees want more than a paycheck. They want purpose. They want to know their work matters.

So, how do you turn things around? Let’s dig into the data.

The Three Biggest Reasons Employee Engagement is Declining 

Employee engagement is in trouble. After years of progress, recent data from Gallup shows it’s now slipping. In 2024, three key elements of engagement took a nosedive, and the impact is hard to ignore.

When employees don’t know what’s expected of them, feel like no one cares, and see no path for growth, they check out. They disengage. And when that happens, performance, innovation, and retention take a hit.

Let’s break down why engagement is dropping — and, more importantly, what you can do about it.

1. Lack of Clear Expectations 

Just 46% of employees strongly agree that they know what’s expected of them at work. That’s down 10 points from a high of 56% in March 2020.

Why does this matter? Because when employees don’t have clear expectations, they feel lost. Confused. Frustrated. And that frustration doesn’t exactly scream “high performance.”

How to Fix it:

  • Set crystal-clear goals and priorities. No guessing games.
  • Regularly check in to make sure expectations are understood.
  • Ditch the jargon — say what you mean in plain English.
2. Feeling Cared About

Only 39% of employees strongly agree that someone at work cares about them as a person. That’s a drop from 47% in 2020.

Translation? More employees feel like just another cog in the machine.

People want to feel valued. Not just for what they produce but for who they are. When that’s missing, disengagement sets in fast.

How to Fix it:

  • Managers, be human. Ask your team how they’re actually doing.
  • Celebrate personal milestones — birthdays, work anniversaries, life events.
  • Small gestures matter: a quick “How’s your week going?” can go a long way.
3. No Career Growth

Only 30% of employees strongly agree that someone at work encourages their development. That’s down from 36% in 2020.

If employees don’t see a future in their role, they’ll mentally check out (before physically leaving). People want to grow, learn, and level up. If there’s no room to do that, motivation fades.

How to Fix it:

  • Offer mentorship programs or job shadowing opportunities.
  • Invest in training and upskilling — make learning part of your culture.
  • Have real career conversations. Employees should know their growth path.

Employee engagement isn’t just slipping. It’s sinking. When expectations are unclear, people feel like they don’t matter, and career growth stalls, disengagement takes over. But it’s fixable.

Why Employee Engagement Actually Matters

Okay, so maybe you’re thinking, “Eh, my employees are getting their work done, so who cares if they’re engaged?” Well, you should. Because when people check out mentally, things start to fall apart fast.

Productivity? Tanks. People do the bare minimum, drag their feet, and miss details. Turnover? Skyrockets. Unhappy employees don’t stick around — they quietly job hunt on their lunch breaks. Customer service? Goes from friendly and helpful to “ugh, what do you want?” And forget about fresh ideas. Disengaged employees aren’t brainstorming ways to make things better; they’re just counting the minutes until quitting time.

The real kicker? It hits the bottom line. Gallup found that companies with highly engaged employees make more money — like a lot more. And when people actually care about their work, everything runs smoother. Less burnout, fewer mistakes, better teamwork.

Long story short? Engagement isn’t just a nice-to-have. It’s the thing keeping your business from slowly turning into a dumpster fire. And fixing it is 100% worth the effort.

Engagement Starts Here: How Companies Show They Care

Great workplaces go beyond policies and handbooks — they actively support employees when it matters most. And when employees feel valued, heard, and cared for, their engagement skyrockets.

Employee engagement isn’t just about job satisfaction; it’s about creating an environment where people feel motivated to contribute their best. Here are some inspiring stories of companies and managers who put their people first.

  • Protecting a Space That Holds Meaning – A manager refused to let anyone book a certain conference room because a teammate once received heartbreaking news there. They understood the emotional weight of that space.

  • Creating an Empathy Leave Policy – A company realized their bereavement policy wasn’t enough when a teammate suffered a tragic loss. Instead of sticking to outdated policies, they created a new “empathy leave” to support employees going through tough times.

  • Supporting a New Hire Through Loss – A hiring manager extended a six-week leave for a new hire who lost her mother right after accepting a job. Even better? They started paying her right away so she wouldn’t have to worry about finances while grieving.

  • Walking with an Employee on a Hard First Day Back – A manager met an employee in the parking lot to walk them inside on their first day back from leave. That small act of kindness made a difficult day feel a little less lonely. Sometimes, the simplest gestures — like showing up, listening, and offering a reassuring presence — make the biggest impact.

  • Providing Therapy for a Whole Family – When an employee lost a sibling, their company sponsored a full year of therapy sessions for their entire family. This wasn’t just about supporting an employee —it was about caring for the people they love.

  • Sending an Employee on a Healing Retreat – A Chief People Officer sponsored a retreat for an employee who lost a child. They recognized that healing takes time and gave them a chance to reset in a meaningful way.

These aren’t things companies have to do. But these small, meaningful actions create loyalty, trust, and— most importantly — real engagement.

6 Practical Ways to Boost Employee Engagement

Engagement isn’t a one-time effort. It’s built over time through trust, compassion, and action. When employees feel cared for, they bring their best selves to work. So, what’s the secret sauce to getting your team to actually care?

1. Cut the Pointless Meetings 

Your team does not need a meeting to plan another meeting.
  • Ask: Is this necessary? If it can be an email, make it an email.
  • Keep meetings short, with a clear agenda.
  • End every meeting with action items — otherwise, why did you meet?

2. Recognize People Like You Mean It 

A generic “Great job, team!” email is about as inspiring as a soggy piece of toast. 

  • Be specific. Call out what someone did well and why it mattered.
  • Recognize employees publicly. Bonus points if healthy food is involved.
  • Celebrate personal milestones like birthdays, work anniversaries, and certifications.

3. Flexibility = Loyalty 

Want engaged employees? Let them work how and where they work best. Some people thrive in the office. Others do their best thinking in sweatpants at home. 

  • Provide flexible work options when possible.
  • Offer mental health benefits and mental health days.
  • Ensure workloads are actually manageable.

4. Give Them a Reason to Care 

Nobody’s getting fired up over a corporate buzzword mission statement.

  • Show employees how their work makes a difference.
  • Offer job rotations or shadowing for career growth.
  • Invest in professional development through conferences, courses, and mentorships.

5. Let Them Be Humans 

Your employees are more than job titles.
  • Get to know them. Remember their dog’s name. Ask about their weekend.
  • Train managers on communication, coaching, and team-building.
  • Give managers the support they need to thrive, not just survive.

6. Make Work Fun  

No, your office doesn’t need a slide. But a little fun goes a long way.

  • Organize regular team-building activities, like group lunches or volunteer projects.
  • Celebrate wins — big or small — with public recognition, bonuses, or fun outings.
  • Keep communication open by encouraging feedback through surveys, suggestion boxes, or town halls.

Keep the Momentum Going

Employee engagement isn’t something you fix once and forget about. It requires ongoing effort from leaders, HR teams, managers, and employees alike.

People want to feel valued, trusted, and like their job has a purpose beyond just making money for the company. Give them that, and you won’t have to worry about employee engagement.

They’ll already be in.

Employee Wellness Handbook

 

Topics: Healthy Workplaces

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