Employee Engagement 2024 Trends: What our in-house research is telling us

Employee engagement is the backbone of a thriving workplace. When employees feel motivated, valued, and connected to their work, productivity soars, retention improves, and company culture flourishes. Here at TSI, we keep a normative database based on the many surveys that we have run in the last 3 years; all first-hand data and processed in-house. This enables us to deliver up-to-date engagement insights and identify emerging trends across industries. By analysing these patterns, we provide our clients with valuable benchmarks, whether in the form of general norms, industry-specific standards, or tailored insights customised to their unique needs. Recent data reveals a concerning trend – our benchmark database research shows that employee engagement has dropped from 84.98% in 2023 to 80.65% in 2024, a 4.33 percentage point decline.

Negative shifts in engagement can have significant consequences, leading to lower morale, decreased performance, and higher turnover. The big question is: Why are employees feeling less engaged, and what can organisations do to reverse the trend?

Using our benchmark database we can explore the key factors contributing to this decline, the risks of ignoring engagement issues, and actionable strategies to rebuild a motivated, committed workforce. Whether you’re a HR leader, a manager, or an employee looking for positive change, understanding these insights is crucial to shaping a workplace where everyone can thrive.

What do we see?

Looking at the 4 measures of engagement used in this analysis – all metrics of engagement have decreased from 2023 to 2024. The below table illustrates the downturn in engagement levels and reflects what we are currently seeing with our clients:

Motivation is the most impacted – Motivation saw the largest drop (-6.42), indicating employees may feel less inspired or connected to their work. Motivation saw a more significant decline in the second half of 2024 compared to the first.

Advocacy sees a drop – The next most significant decline in score from 2023 is in Advocacy (-4.77), suggesting that employees are becoming less likely to promote their employer as a great place to work.

A drop in Pride – This item fell by 3.09 percentage points from 2023. Whilst the drop is not as severe as seen in motivation and advocacy, pride is a significant driver of engagement. Employees who take pride in their company are more likely to stay, advocate for the organisation, and perform at their best.

Intent to Stay shows the smallest decline – Employees willingness to stay with a company sees a drop of 3.05 from 2023.

What are the potential causes?

When considering engagement, it’s important to take a step back and look at the broader context, factoring in additional issues and external influences. The decline in engagement scores across organisations in the UK can be attributed to a combination of economic, organisational, and societal factors.

• The ongoing cost of living crisis has left many employees feeling financially strained, impacting motivation and overall job satisfaction.
• The challenges surrounding hybrid and remote work have evolved in recent times – while earlier concerns primarily revolved around isolation and communication, the focus has now shifted towards a growing reluctance among employees to return to the office more frequently or on a full-time basis. This shift reflects changing workforce expectations, with many employees valuing the flexibility, autonomy, and improved work-life balance that remote and hybrid models offer.
• Talent shortages and skill gaps are also placing additional pressure on employees, increasing workloads and contributing to stress and burnout.
• Economic uncertainty is impacting a significant number of people, leading to increased stress, lower morale, and reduced productivity. Concerns about job security and financial stability can make employees less motivated and more disengaged.
• Global political unrest can also create a level of uncertainty and stress, ultimately impacting engagement. Employees may feel distracted or anxious due to concerns about policy changes or social divisions stemming from political conflict. In workplaces where political discussions are common, differing opinions can lead to strained relationships, reduced collaboration, and even workplace disputes.
• Organisations are also facing rising employee expectations around ESG (Environmental, Social, and Governance) commitments, with many employees seeking greater alignment between their values and their employer’s actions.
• Generational shifts in the workforce mean that traditional engagement strategies may not be resonating as effectively, requiring companies to rethink their approach to motivation, recognition, and career development.

These factors collectively contribute to the overall decline in engagement, making it essential for organisations to proactively address these challenges to rebuild a more engaged and committed workforce.

What can an organisation do to buck the trend?

Improving motivation (-6.42 drop)

• Recognition and rewards: Implement frequent employee recognition programs (peer-to-peer shoutouts, leadership acknowledgments, bonuses).
• Career growth opportunities: Offer learning and development programs, mentorships, and clear career progression paths.
• Purpose-driven work: Help employees see the impact of their contributions by sharing success stories and customer feedback.

Strengthening advocacy (-4.77 drop)

• Employee involvement in decision-making: Engage employees in key decisions through communication and use surveys and focus groups to close the loop.
• Enhance workplace culture: Foster a positive culture through team-building and ensuring inclusivity, and psychological safety.
• Brand ambassadorship: Encourage employees to share company success stories through internal and external platforms.

Boosting pride (-3.09 drop)

• Enhance company reputation: Reinforce company values through actions (CSR initiatives, diversity and inclusion efforts, community involvement).
• Transparent leadership communication: Share regular updates from leadership about company goals, achievements, and challenges.
• Celebrate employee contributions: Highlight employee achievements and innovations publicly (e.g., newsletters, town halls).

Maintaining and increasing Intent to Stay (-3.05 drop)

• Work-Life balance initiatives: Introduce flexible work options, mental health support, and manageable workloads.
• Stay interviews and feedback loops: Conduct regular one-on-one conversations to understand what employees value and what may push them to leave. Where changes are made off the back of employee feedback, it is important to ‘close the loop’ and ensure that the changes are well communicated to members of staff.
• Competitive compensation and benefits: Ensure salaries and benefits remain competitive in the market.

What can we take away from all of this?

Employee engagement goes beyond being just a metric; it’s the cornerstone of a thriving, high-performing workplace. Low engagement over time can have a profound impact, resulting in reduced productivity, increased turnover, and a diminshed company culture. Additionally, it can lead to lower employee morale, a lack of innovation, poorer customer service, and even an increase in workplace stress and burnout. These effects can ultimately hinder the overall success and growth of the organisation.

The good news? Engagement can be revitalised with strategic, data-driven action. By leveraging annual or bi-annual engagement surveys, along with regular pulse surveys, organisations can track key engagement metrics and identify areas needing attention. Regularly gathering this information is crucial for developing tailored action plans and personalised development programmes that address employees’ specific needs.

The question is no longer whether engagement matters, but how organisations will respond to the challenge. Now is the time to take action, prioritise employees, and create a workplace where engagement doesn’t just recover – it thrives.

Ready to take the next step? Contact us today to implement a tailored engagement survey and start building a more engaged, high-performing workforce.