New Study Highlights Progress and Challenges in Employee Engagement

The HR.com Research Institute's latest report, 'State of Employee Productivity and Engagement 2025,' presents a nuanced view of the current state of employee engagement. While there has been a notable increase from 23% in 2022 to 30% in 2025, the study reveals that more than 40% of HR professionals still consider the average employee to be poorly engaged. This disparity highlights the ongoing challenges organizations face in fostering a truly engaged workforce.

Key findings from the report suggest that the most successful organizations in terms of employee engagement are those that measure engagement more frequently than quarterly. However, only 15% of companies adhere to this practice. The study identifies organizational culture as the top driver of engagement, yet a significant gap exists between recognizing its importance and taking actionable steps to improve it. For instance, just 45% of organizations continuously work on enhancing their culture, and only 27% invest in programs specifically designed to boost engagement.

Leadership's role in engagement cannot be overstated. Organizations where managers prioritize engagement report markedly better outcomes, with over 70% of these managers providing regular feedback, building trust, and acting on employee input. The report also explores the potential of artificial intelligence (AI) in improving engagement and productivity. Although only 36% of organizations currently leverage AI for productivity-related tasks, its ability to reduce administrative burdens presents a promising avenue for freeing up time for more meaningful employee interactions.

Debbie McGrath, Chief Instigator at HR.com, emphasizes the importance of viewing engagement as an ongoing strategy rather than a one-time metric. The report underscores the necessity for organizations to invest in leadership development, cultural improvement, and the intelligent use of technology to achieve lasting improvements in employee engagement.

For those interested in delving deeper into the findings, the recording of the research webcast presentation, 'Staying Productive and Engaged in an Age of Bewildering Change,' is available for on-demand viewing at https://hr.com/hrresearchinstitute.