People Element has released its 2025 Employee Engagement Report, offering a data-driven analysis of engagement trends, satisfaction drivers, and the persistent challenges facing organizations in building resilient and motivated teams. Based on feedback from thousands of employees across multiple industries, the report delivers actionable recommendations to improve and sustain employee engagement.
Engagement Trends and Historical Context
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Engagement peaked at 61% in 2020, spurred by heightened employer efforts in communication and well-being during the pandemic.
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A decline followed, with engagement dipping to 56% in 2023 before a slight rebound to 57% in 2024.
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The data indicates that short-term fixes are ineffective; long-term, sustained strategies are essential to maintain engagement.
“Engagement strategies cannot be short-term solutions,” said Chris Coberly, CEO of People Element. “Companies that focus on culture, development, and transparency will see lasting results.”
Drivers of Employee Engagement in 2025
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Leadership Effectiveness: Employees respond positively to consistent, clear, and inspiring leadership.
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Workplace Flexibility: Hybrid and remote models need to be supported by structure and autonomy.
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Opportunities for Growth: Access to upskilling and professional development directly impacts engagement.
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Employee Recognition:
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Recognition leads to higher engagement scores.
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Meaningful acknowledgment of contributions reinforces employee value.
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Remote & Hybrid Work: Evolving Expectations
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As flexible work models become the norm, expectations around work-life balance, communication, and autonomy are shifting.
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Organizations embracing flexibility, while ensuring clear communication and leadership visibility, report better retention and engagement rates.
Recommendations for HR Leaders and Organizations
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Invest in Continuous Development: Provide regular learning and growth opportunities.
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Strengthen Recognition Programs: Acknowledge contributions in meaningful, personalized ways.
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Prioritize Transparent Communication: Keep employees informed and involved in organizational goals.
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Support Leadership Training: Equip managers to lead hybrid teams effectively.
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Monitor Engagement Regularly: Use real-time feedback tools to adjust strategies proactively.
The 2025 Employee Engagement Report from People Element makes one thing clear: companies must evolve their engagement strategies to align with modern workforce expectations. With flexibility, recognition, and leadership at the core, organizations can not only improve engagement but also foster long-term retention and resilience.
