Employee engagement in the U.S. fell to the lowest level in a decade at the end of 2024, with only 31% of employees being engaged and 17% of employees being actively disengaged, according to a Jan. 14 report from Gallup. Levels this low were last seen in 2014.
Employee detachment is growing nationwide, particularly among workers under age 35 and those in finance, technology, transportation and professional services.
“In Gallup’s trend dating back to 2000, employee engagement peaked in 2020, at 36%, following a decade of steady growth, but it has generally trended downward since then,” wrote Jim Harter, Gallup’s chief scientist for workplace management and well-being.
In surveys of 79,000 U.S. employees throughout 2024, the percentage of engaged employees declined by two points from 2023, equaling about 3.2 million employees who feel less engaged. Generation Z employee engagement dropped by five points.
Among the 12 engagement elements that Gallup measures, several saw significant declines, dropping by three or more points in the “strongly agree” category. For instance, only 46% of employees feel clear about what’s expected of them at work, which is down from a high of 56% in March 2020.
In addition, only 39% of employees feel strongly that someone at work cares about them as a person, dropping from 47% in 2020. Beyond that, only 30% believe someone at work encourages their development, down from 36% in 2020.
Although managers are failing to meet employees’ needs, managers themselves aren’t faring any better, Harter wrote. Only 31% of managers said they’re engaged, which is the same percentage as employees overall.
For broader context, the drop in engagement occurred during a challenging economic environment in 2024, Harter noted. And fewer people said 2024 was a good time to find a job.
Based on Gallup research, Harter wrote, the current downward trend in engagement can be attributed to rapid organizational change, challenges linked to hybrid and remote work, new customer and employee expectations and broken performance management practices.
Despite the challenges since 2020, leaders can reverse engagement declines, Harter wrote, by aligning workplace culture with organizational purpose, upskilling managers to focus on clear priorities and ongoing feedback with employees and selecting managers with a natural ability to engage and inspire employees.
Employees and HR teams don’t always see eye to eye on engagement, according to a SurveyMonkey report, especially when employee preferences vary by generation, identity and parental status. The greatest gaps tend to occur at workplaces lacking strong and authentic feedback, the report found.
When HR staff use engagement data wisely, productivity and retention increase, according to a McLean & Co. report. However, when employees aren’t included in the process, decisions about new engagement initiatives may backfire and waste resources, the report found.
Before turnover rates increase, employers should double down on engagement in early 2025, according to an Eagle Hill Consulting report. Gen Z workers and women appeared to be most likely to leave, so understanding their unique needs and preferences can help, the firm reported, especially when it comes to culture, flexibility and career development.
