Employee engagement in the U.S. hit a concerning low in 2024, dropping to just 31%, a figure that matches the level seen in 2014. This decline signals a major shift in the workforce, particularly when you consider the rising number of actively disengaged employees, which stands at 17%, a rate also last observed a decade ago. What’s driving this decline? Here’s a closer look at the current state of employee engagement and what businesses can do to turn things around.
A Decline in Engagement and a Growing Disconnect
The percentage of engaged employees has dropped by two percentage points since 2023. But it’s the younger workforce, particularly employees under the age of 35, who are increasingly feeling disconnected from their organizations. These younger workers are often the most vocal about their need for a meaningful connection with their employers, which is exactly where the problem lies.
A Disconnect in Clear Expectations
- Only 46% of employees say they clearly know what is expected of them at work.
- This marks a significant decline from 56% in March 2020, suggesting that organizations are not providing the clarity and structure employees need to succeed.
Lack of Personal Connection and Development Opportunities
Another area where companies are failing is in building meaningful relationships with their employees.
- Only 39% of employees strongly agree that someone at work cares about them as a person, a drop from 47% in 2020. This disconnect can create feelings of isolation and disillusionment, ultimately leading to a disengaged workforce.
- Furthermore, just 30% of employees feel that someone is actively encouraging their development. This is down from 36% in 2020, signaling that organizations are failing to invest in their employees’ growth.
When employees feel their development is being ignored, they’re less likely to stay committed to their jobs or organizations.
The Industry-Specific Decline
Certain industries are facing particularly sharp declines in employee engagement. Sectors such as finance, insurance, transportation, technology, and professional services have all experienced notable drops in engagement levels.
While the causes vary by industry, a lack of leadership clarity, unclear career progression, and insufficient recognition are often common threads that affect employee engagement in these sectors.
What Can Organizations Do to Boost Engagement?
Addressing the current state of employee engagement requires focused action. Here are a few strategies that can help reverse the disengagement trend:
- Clarify Expectations: One of the most basic yet essential actions is ensuring employees understand their roles and responsibilities. Regular check-ins and goal-setting sessions can provide clarity on expectations and help employees feel more confident in their work.
- Create Personal Connections: Leadership must prioritize building meaningful relationships with employees. Taking the time to show employees that they’re valued as individuals, not just workers, can go a long way in improving engagement.
- Encourage Development: Employees, particularly younger ones, want to feel like they’re growing professionally. Offer opportunities for training, mentorship, and skill-building that align with both their career goals and the company’s objectives.
- Recognize and Reward Contributions: Acknowledge the hard work and dedication of employees. Regular recognition and rewarding of contributions can help employees feel more motivated and engaged.
- Tailor Approaches by Industry: Each industry faces its own challenges, so a one-size-fits-all approach to engagement may not work. Employers in sectors with declining engagement should tailor their strategies to address specific concerns, whether that’s through improved work-life balance, clearer advancement paths, or increased recognition of employees’ contributions.
Conclusion
The decline in employee engagement in 2024 is a wake-up call for organizations to rethink how they’re engaging with their employees. The stats are clear: employees want clarity, care, and opportunities for growth.
If companies can address these fundamental needs, they’ll be on the right track to fostering a more engaged and motivated workforce.
At Xceleration, we work with our customers to design employee engagement programs so that their employees are recognized rewarded and they stay engaged. To learn more, visit https://xceleration.com/.
Source data – https://www.gallup.com/workplace/654911/employee-engagement-sinks-year-low.aspx