Hands up or feet up? Driving effective engagement.
Gallup's 2025 report on global engagement is out.
Engagement is the extent to which an individual feels emotionally connected to their job and organization. Employees who are highly engaged do more for the organization, say great things about the organization and stay with the organization longer. They put their 'hands up'. To be clear, they do all those things because they are happy and want to - so its a win win (engagement is not about 'squeezing more out of people' its about a situation of mutual gain). Gallup splits folks into 3 categories - those who are engaged , those who are not engaged (I consider those folks the ones on the fence. Their job is 'alright' but not setting them on fire), and those disengaged who actively work against the plans of the organization.
It's also important to note that you can be highly satisfied but not necessarily highly engaged. Highly satisfied folks are the ones with their "feet up" - they are satisfied with what they get from the organization (pay, flexibility etc.) but are not emotionally attached so don't give more. Not to suggest that folks who are satisfied don't add value because they do, but they aren't as connected and don't add as much value as someone who is engaged.
High engagement levels are correlated to better well being for the employee and better results for the organization. High engagement levels are connected with better safety records, better absenteeism rates, better customer loyalty, and better financial performance.
So where are we?
Shocker - engagement levels have dropped. It's only the second time in the last 12 years. Now, that said, it's higher than it was in 2009 but we're essentially sitting at the same level we were during COVID globally, and in North America levels have actually dropped. The statistics for North America (and no, sadly, we can't see Canada specific data) show that 31% of our workforce is engaged, 52% are not engaged and 17% are disengaged. Engagement hasn't moved much since last year, but what has is the job climate. 50% are still watching for or actively seeking a new job, but the number thinking its a good time to find a new job has dropped by 9 points. I would imagine that is related to current levels of political uncertainty. So folks are still looking, but it will need to be a good deal and likely a 'safe' one.
The number of people who say they are thriving has also dropped by 4 points. 52% of people say they are thriving, while 44% now say they are struggling and 4% say they are suffering, so focussing on wellbeing remains important. No one works well when they are chronically stressed. 50% say they experience stress A LOT of the day. It increases to 60% in those under 35.
And in organizations, management level engagement has dropped. Younger manager engagement fell by 5 points and female manager by 7. Likely related to increasing pressure on organizations , the pace of change, and challenges with a tight talent market.
So what do we do?
Well, everyone is talking about retention. Engagement is your doorway to retention . The statistics show that while it takes on average only a 5% pay increase to attract a disengaged employee to leave, it takes a 20% pay raise to get an engaged employee to move. So if you are focussing on engagement then you have a much better chance of retaining your top talent.
There are lots of ways to measure and take action on engagement. Gallup themselves have their Q12 question that measure engagement levers. We at ethree have the 4 pillars which are 4 questions you want your team to respond to with a resounding 'yes!' (or score 10/10). Not as global as the Q12 but a little easier for our clients to implement day to day. If you don't measure engagement now, formally or informally, it's time to start.
Potential Actions
Beyond that, there are some actions aligned to the trends that we'd suggest considering below. Because we know these things are important, we offer support in these areas as needed.
- Given the challenges with thriving, providing supports for employees around managing life and stress can be very beneficial. This can be full support like EFAP programs, training and workshops, or it can be ensuring that your managers themselves have support. Managers must be able to be empathetic with their teams and handle accommodations and other requests as they come in. If you're not sure where to start, we offer short online courses in stress management and have a course built in conjunction with the Canadian Mental Health Association - NL on mental health in the workplace.
- Take care of your managers. Manager level engagement has dropped. 44% of managers say they have never had leadership training, which means they are figuring it out as they go. Possible, but much more stressful. Make sure your leaders have the tools and training to handle the job. We offer high impact, budget friendly leadership training options that any client can access.
- Train leaders and highly impactful employees in coaching skills. Coaching others helps to build their sense of ownership, their critical thinking and other skills and builds their capacity and capability for the future. Employees feel that they are being invested in and growing and leaders build people who can think and act effectively with less hands on support (lessening the stress for leaders). Personally, I think coaching is one of the most under-utilized tools in a leader's toolkit and yet it's so simple to do.
Its people that make the difference
- With the invention of AI, our ability to connect and lead people is a differentiator. Organizations that focus on engagement will set themselves apart and face less talent challenges than they otherwise might. For small businesses in particular who can't offer huge pay checks, engaging the team just makes sense.
- If you'd like to talk more about engagement get in touch. We can help you figure out how to measure and act on it for your organization. We don't nickel and dime our clients and we don't suggest things for the sake of it. We'll help you implement things that will actually work.