Employee Engagement Shows Improvement Yet Challenges Remain, HR.com Study Finds

A recent study by HR.com's Research Institute, titled 'State of Employee Productivity and Engagement 2025', indicates a modest improvement in employee engagement levels, rising from 23% in 2022 to 30% in 2025. Despite this progress, over 40% of HR professionals report that the average employee remains poorly engaged, underscoring the need for more effective engagement strategies.

The study identifies organizational culture, leadership, and the intelligent use of technology as key drivers of engagement. However, it notes a significant gap between recognizing these drivers and implementing actionable strategies. For instance, only 45% of organizations continuously work to improve culture, and a mere 14% train managers on how to engage employees effectively.

Organizations that prioritize engagement through regular feedback, trust-building, and acting on employee input report better outcomes, with more than 70% of these organizations seeing positive results. The study also highlights the potential of AI in enhancing productivity and engagement, though currently, only 36% of organizations utilize AI for productivity-related tasks.

Debbie McGrath of HR.com emphasizes that engagement is an ongoing strategy requiring investment in leadership, culture, and smarter tools. The findings suggest that while there are signs of progress, much work remains to be done to achieve lasting improvements in employee engagement.