Employee Engagement is Down – Why it Matters and What We Can Do About It

During the pandemic, employee engagement understandably took a nosedive. With so many people out of a job or working completely from home, inevitably, people’s attitudes toward work changed – and for many, even now in the years following, it’s no longer the priority it once was. According to Gallup’s annual State of the Global Workforce report, only 23% of the global workforce is engaged at work (which they call thriving), while a staggering 59% are not engaged, a state often described as "quiet quitting." And 18% are actively disengaged or "loud quitting."

This decline in engagement means productivity, employee retention, and overall workplace culture have all suffered. However, prioritizing people’s well-being and having productive workplaces doesn’t have to be a zero-sum game. Here’s why the success of both are inextricably connected.

The Current State of Employee Engagement

Gallup's recent shift in language from focusing solely on engagement to a broader perspective that includes well-being and thriving is significant. They categorize employees on a continuum from suffering to thriving, with struggling in the middle. This new approach recognizes that engagement is intricately linked to overall well-being.

Gallup's findings highlight a critical issue – that only 21% of U.S. employees feel their organization genuinely cares about their well-being. This lack of perceived care has significant consequences:

• Employees who feel their employer cares about their well-being are 69% less likely to actively search for a new job.
• They are 71% less likely to report experiencing a lot of burnout.
• They are 36% more likely to thrive in their overall lives.
• They are five times more likely to trust their organization’s leadership.
• They are also five times more likely to strongly advocate for their organization as a great place to work.

Why Employee Engagement is Suffering

Several factors contribute to low employee engagement, with poor management being the most significant. According to Gallup, managers account for 70% of the variance in employees’ engagement. Their daily words and actions significantly influence employees' sense of safety, their perception of whether the company cares about them, and even their access to the information they need to perform their jobs effectively.

These are the top 10 factors leading to low employee engagement:

1. Poor management
2. Lack of recognition
3. Poor communication
4. Lack of career growth
5. Lack of training and development opportunities
6. Lack of tools and resources
7. Low pay
8. Not getting to use strengths
9. Excessive workload
10. Lack of collaboration

Poor management sits at the top of this list for a reason—people generally leave a boss, not a company. Many managers are promoted to this position because they were good individual contributors but that does not mean they have the skills to cultivate the potential of others. SHRM found that 84% of employees say that poorly trained managers create a lot of unnecessary stress. And 50% felt their own performance would improve if their manager received the right kind of training. 

Obviously, investing in manager training should be a top priority. Managers directly impact at least half of the list above through their daily words and actions. The good news is that investing in manager training will pay off in increased productivity, engagement, and retention of your best people. 

Poor management can also take the form of toxic behavior. An article in Human Resources Director states that nearly 9 out of 10 employees have been under a toxic boss, directly impacting their productivity, engagement, and anxiety. The American Psychological Association (APA) found that 22% of workers say their work environment has harmed their mental health. Half of employees say they have nightmares about their bosses and one-third go to therapy to cope with their toxic manager. 

Organizations need to address toxic behavior directly and immediately. Ignoring the signs can lead employees to perceive the entire culture as toxic. Studies show that a toxic corporate culture is 10.4X more powerful than compensation in predicting a company’s attrition rate.

How to Revitalize Employee Engagement

One of the most effective ways to address low employee engagement is through a strong learning culture. Not only will it give managers the skills they need, but it also benefits employees directly. Many of the other ten factors listed above can be mitigated or even resolved with comprehensive training programs. Key elements of a strong learning culture include:

1. Invest in learning: Allocate resources for training programs, educational materials, and learning tools that support the skill and career development of every level of employee.
2. Leadership involvement: Senior leaders should set a tone that values growth. They can model this by sharing their own learning experiences and investing in the learning function.
3. Prioritize psychological safety: Create an environment where employees feel safe to take risks and express ideas. Cultivate a culture that views mistakes as learning opportunities with a focus on continuous improvement. 
4. Recognize improvement: Have a strategic plan and performance process that emphasizes ongoing growth. Rewards often go to the same top performers—consider how you recognize the employees that put a lot of effort into making big improvements.
5. Leverage strengths: Employees are more engaged when they feel they can use their strengths. Build a hiring process that matches strengths to roles and projects. Train managers on how to provide regular coaching and support.
6. Support career pathways: Build visible career pathways and align your training programs to help people make forward progress in their skill development.
7. Knowledge sharing: Promote knowledge sharing across functions and roles through the strategic use of tools and processes like videos and peer coaching.

This content is partially excerpted from my recent interview with Training Industry’s Q&A podcast The Business of Learning, Episode 77: Elevate Employee Engagement With L&D. To learn more about employee engagement, you can listen to it here or on Apple iTunes Podcasts, Google Play and on Spotify.