Employee Engagement Falls to Lowest Point in Over a Decade

Employee engagement in the U.S. has dropped to its lowest level since 2013, according to the latest Gallup polling.

By the end of 2023, 33 percent of U.S. employees reported being highly engaged in their work and workplaces, but the most recent polling from February 2024 reveals a slide, with engagement dropping 3 percentage points to 30 percent. The decline represents 4.8 million fewer employees who are highly engaged at work.

The record high for engaged employees was recorded in 2020 at 36 percent, and although the latest figures are down compared to that peak, the current level is the same as or higher than any reading between 2000 and 2013.

“We found U.S. employees were increasingly detached from their employers, with the workforce reporting less role clarity, lower satisfaction with their organizations, and less connection to their companies’ mission or purpose,” said Jim Harter, chief scientist, workplace for Gallup. “Employees were also less likely to feel someone at work cares about them.”

Gallup used a random sample of 18,708 U.S. adults working full time or part time.

Employees Are Looking for More

Carly Holm, founder and CEO of Humani HR, a management and HR consulting firm in Nashville, said falling engagement is a big topic among her clients.

“I’m not surprised at all,” she said. “The world of work has changed so dramatically in the last few years. People are spending so much more time on screens than actually interacting with other people. I believe that decreased human interaction has led to a decrease in employee engagement.”

Meghan Stettler, director of the O.C. Tanner Institute in Salt Lake City, also found the Gallup results unsurprising and said that the root of the issue goes deeper than employee engagement. “Engagement measures discretionary effort or motivation. It does not predict job performance,” she said. “Do people put in the effort and get work done while being unhappy or dissatisfied? You bet.”

Stettler added that despite employers’ best intentions and significant investment to raise employee engagement over the years, it is a metric that has not moved, an assertion supported by Gallup polling.

“I think many employees are not simply looking to be engaged, they are yearning for people-centric workplace cultures that will allow them to create meaningful and fulfilling experiences,” she said. “What appears to be an engagement or motivational issue is really a cry for finding fulfillment at work.”  

According to Stettler, employee fulfillment is derived from fundamental psychological needs that include:

• Community, connection, and belonging.
• A sense of purpose.
• Personal growth and demonstration of mastery.
• Flexibility and autonomy over the way work is done. 

“Disengagement is felt strongest among employees who don’t perceive they have the level of flexibility and autonomy in their work that they want and people who are expecting more than just a transactional relationship with their organization,” she said.

Gallup found that the drop in employee engagement was most pronounced in:

• Employees under age 35, particularly from Generation Z.
• Employees who could do their jobs remotely but who work exclusively onsite.
• Employees who are fully remote.

Recommendations for Employers

Harter said that Gallup has studied organizations with high engagement levels and found that they tended to have created hybrid working environments that fit their cultures, expressed clear overall expectations for employees, and provided managers with training and support.

“They have effective onboarding programs for new employees and holistic and multidimensional approaches to well-being, offering a range of services and resources,” he added.

“Employee engagement takes effort, whether you’re fully remote or in the office, and it’s the responsibility of managers and leadership to make sure employees are engaged,” Holm said. 

She advised managers to mindfully check in on their remote employees, to ask about their work, and to inquire if they are feeling fulfilled and connected to the work.  

“Employees want more than just a paycheck,” she said. “Especially the younger generations want to be making an impact. That doesn’t mean saving the world, but figuring out and emphasizing how the organization gives back to the community and serves its mission.”

Holm added that people thrive on social interaction. “It’s a tricky time for employers regarding RTO [return to office],” she said. “But ensuring some kind of flexibility is the way of the future. Working with colleagues in the office leads to a stronger connection and higher engagement. Having the flexibility to work from home and autonomy in the way you work will also lead to higher engagement.”

Stettler recommended managers redesign one-on-one meetings away from the standard updates on work progress toward discussing how employees’ work is tied to the organization’s purpose, how they are delivering on making a difference, and how their passions and skill sets could be better utilized, as well as clearly mapping growth opportunities and celebrating their accomplishments.

“Use recognition to showcase how employees are uniquely contributing to business outcomes,” she said. “When you celebrate someone’s unique identity, that boosts their sense of belonging.”