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Employee engagement in the US has plummeted to its lowest point in ten years, with just 31% of employees reporting they are engaged at work and 17% actively disengaged, according to a January report from Gallup.
The last time engagement levels were so low was in 2014, marking a stark decline from the peak of 36% engagement seen in 2020.
The downturn is particularly pronounced among workers under 35 and those in sectors such as finance, technology, transportation, and professional services. Gallup’s survey of 79,000 employees in 2024 showed a two-point drop in engagement compared to 2023, translating to 3.2 million more workers feeling disengaged.
Gen Z workers experienced the steepest decline, with engagement falling by five percentage points.
What drives disengagement
Several critical factors are driving the trend, with Gallup identifying significant drops in key workplace elements it measures. For example, only 46% of employees strongly agreed they understand what is expected of them, down from a high of 56% in early 2020. Similarly, only 39% believe someone at work genuinely cares about them, a steep fall from 47% in 2020, and just 30% feel supported in their professional development, compared to 36% previously.
The 2026 Employee Engagement Impact Report
Terryberry surveyed 1,000 full-time U.S. employees to understand how engagement programs affect retention, motivation, and performance—and what separates effective programs from those that fall short.
Our employee engagement survey report found:
- 91% of employees agree that their workplace engagement programs would be more effective if they were better connected.
- 70% of employees with well-connected workplace engagement programs say those programs have significantly influenced them to stay at their job.
- Remote employees are nearly 20% less likely than hybrid and in-office employees to say their organization’s engagement programs work well together.
- 59% of employees experience at least one obstacle to participating in workplace engagement programs.
The report breaks down key findings across industries and work environments, with practical takeaways to help HR leaders strengthen program participation and maximize the impact of their engagement initiatives.
Managers, who play a pivotal role in workplace engagement, are also struggling. Gallup reported that only 31% of managers are engaged - on par with employees overall - highlighting systemic issues in leadership and management.
Economic uncertainty in 2024 compounded the challenges. Rapid organizational change, difficulties adapting to hybrid and remote work, shifting employee and customer expectations, and ineffective performance management practices were cited as significant contributors to disengagement.
Reversing the trend
Despite these setbacks, experts stress that leaders and HR teams can reverse the downward trend. Gallup advises organizations to align workplace culture with their mission, prioritize manager training to foster clear communication and feedback, and ensure managers are selected for their ability to inspire and engage teams.
HR departments also need to leverage engagement data strategically. When engagement initiatives are informed by genuine employee input, organizations see improvements in productivity and retention. Conversely, top-down decisions that exclude employee perspectives risk wasting resources and further eroding trust.
Employers are urged to focus on addressing the needs of Gen Z workers and women, two groups most likely to consider leaving their roles. Tailoring initiatives around flexibility, culture, and career development could be key to rebuilding engagement and staving off an increase in staff turnover.
For HR leaders, the message is clear - understanding and addressing employee needs, particularly in challenging economic conditions, is strategically vital in fostering a thriving workplace.
