Organizations that strategically measure and act on employee engagement data are better positioned to navigate uncertainty and sustain workforce productivity, according to McLean & Company’s recent research in the Employee Engagement Trends Report 2025. The report provides critical insights into the evolving state of workplace engagement.
The report reveals that despite a challenging external environment in 2024, which was marked by global economic uncertainty, shifting labor market conditions, and continued workplace transformations, overall engagement levels have remained mostly stable. According to the findings, 62.6% of employees are categorized as engaged, nearly 2% higher than pre-pandemic levels. However, the firm cautions that organizations cannot afford to be complacent. While high-level engagement scores have held steady, key drivers such as work-life balance, leadership communication, and career development opportunities showed incremental shifts that warrant proactive attention.
“As economic pressures and labor market uncertainties continue, maintaining employee engagement requires more than a once-a-year survey,” says Laura Hansen-Kohls, vice president, HR diagnostics, advisory, and data insights at McLean & Company. “Organizations that implement ongoing measurement and take targeted actions to address engagement gaps will see the greatest success in retaining talent, driving performance, and fostering resilience. Employee engagement is dynamic, and companies that commit to sustained, data-driven strategies will gain a competitive edge.”
Key findings from the report include the following.
- Work-life balance gains traction, but leadership burnout persists. Work-life balance saw a 1.1-point increase in 2024, suggesting progress in employee satisfaction with flexible work arrangements and wellbeing initiatives. However, managers continue to report significantly lower satisfaction compared to individual contributors, underscoring the need for more robust leadership support and workload management strategies. Leadership burnout remains a growing concern, as people managers are 1.7 times more likely to report high levels of workplace stress compared to non-managers.
- Total compensation scores remain stagnant amid cost-of-living concerns. Despite economic fluctuations and rising inflation, employee satisfaction with total compensation remained relatively unchanged in 2024. Compensation and benefits continue to be among the lowest-scoring engagement drivers, reinforcing the need for organizations to build a comprehensive total rewards strategy that aligns employee expectations with organizational priorities.
- Communication gaps in executive leadership persist. While organizations are increasing efforts to act on employee feedback, only 53.2% of employees reported understanding the rationale behind executive decisions, a slight decline from previous years. Transparency and clear communication from senior leadership remain critical areas for improvement, especially during times of organizational change and external uncertainty.
- Career advancement and development shows modest growth but remains a concern. Employees seeking career progression opportunities saw minor improvements in 2024, yet perceptions of upward mobility within organizations remain a challenge. The report highlights that employees who receive meaningful feedback from their managers are 5.7 times more likely to feel supported in their career advancement efforts. Establishing well-defined career pathways, providing access to upskilling opportunities, and fostering a culture of continuous development will be essential for improving engagement in 2025 and beyond.
- Coworker relationships remain a key engagement driver. With 78% of employees reporting positive co-worker relationships, strong co-worker connections continue to play a key role in fostering engagement and resilience. Organizations can leverage this strength by encouraging mentorship, collaboration, and team-building initiatives that further enhance workplace culture.
