Employee Engagement Shows Improvement Yet Challenges Remain, HR.com Study Reveals

The latest findings from HR.com’s Research Institute present a nuanced view of employee engagement trends in 2025. Despite an increase from 23% in 2022 to 30% this year, the study reveals that more than 40% of HR professionals still consider the average employee to be poorly engaged. This discrepancy points to a critical gap in how organizations approach engagement strategies.

The State of Employee Productivity and Engagement 2025 report emphasizes the importance of moving beyond superficial measures to address the core drivers of engagement: organizational culture, leadership, and the strategic use of technology. Notably, companies that measure engagement more frequently than quarterly are five times more likely to see success in this area. However, only 15% of organizations adhere to this practice.

Organizational culture emerges as the top driver of engagement, yet the commitment to fostering a positive culture is lacking. The study found that merely 45% of organizations continuously work on improving their culture, with even fewer investing in programs that enhance engagement (27%) or training managers on engagement strategies (14%). In contrast, organizations where leaders prioritize engagement report significantly better outcomes, with over 70% of managers in these companies providing regular feedback, building trust, and acting on employee input.

The role of artificial intelligence (AI) in enhancing engagement and productivity is also highlighted, with 36% of organizations currently leveraging AI for productivity-related tasks. The technology’s potential to reduce administrative burdens and facilitate meaningful employee interactions is noted as a promising avenue for future engagement strategies.

Debbie McGrath, Chief Instigator at HR.com, remarks on the progress observed but stresses the need for sustained effort. ‘True engagement isn’t a one-time metric—it’s an ongoing strategy. To make lasting gains, organizations must invest in leadership, culture, and smarter tools,’ McGrath stated.

The findings underscore the urgency for organizations to reevaluate their engagement strategies, focusing on comprehensive measures that address the underlying factors influencing employee productivity and satisfaction.

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