Employee Engagement Is Rising, But Poor Engagement Still Persists — New Study by HR.com Research Institute

A new research report from HR.com’s Research Institute reveals a complex picture of employee engagement in 2025: While engagement has improved from 23% in 2022 to 30% this year, over 40% of HR professionals say the average employee is still poorly engaged.

HR.com’s State of Employee Productivity and Engagement 2025 report highlights a growing urgency for organizations to move beyond surface-level initiatives and invest in the real drivers of engagement—culture, leadership, and intelligent use of technology.

The research found that companies seeing greater success in employee engagement are 5X more likely to measure engagement more frequently than quarterly. Yet, only 15% of organizations actually do so..

Organizational culture was named the top driver of engagement, but few are putting their money where their mission. In fact, only:

• 45% continuously work to improve culture

• 41% actively listen to employee feedback

• 27% invest in programs that enhance engagement

• 14% train managers on how to engage employees

In contrast, organizations where managers and leaders prioritize engagement report far better outcomes. More than 70% of those say their managers:

• Give regular feedback

• Build trust

• Listen and act on employee input

The report also points to the emerging role of AI in driving both engagement and productivity. While just 36% of organizations currently use AI for productivity-related tasks, the technology shows promise in reducing administrative burdens and freeing up time for meaningful employee interactions.

“We’re seeing encouraging signs of progress,” said Debbie McGrath, Chief Instigator and at HR.com. “But 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.”

REPORT DOWNLOAD

The recording of the research webcast presentation, Staying Productive and Engaged in an Age of Bewildering Change, is available for viewing 24/7 on demand.

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