Leadership & Strategy

What’s wrong with employee engagement now — and 5 ways to fix it

Last Updated: June 27, 2023

5 minute engagement

What’s wrong with employee engagement?

Lots, according to research.

But we probably don’t have to tell you that. HR pros see it in the workplace: It’s the struggle to retain talent. It’s the resistance to change. It’s the lack of interest in initiatives. It’s the pushback on returning to the office. It’s the general feeling of disinterest and unrest.

“Now more than ever, employers are struggling to keep up with the evolving needs of talent, and risk falling behind if they don’t bridge the growing divide related to workplace expectations,” says Tammy Browning, SVP at Kelly.

To back up what you likely experience, The 2023 Kelly Global Re:work Report found:

45% of employees have been or are Quiet Quitting
28% of employees say they plan to leave their job in the next year
43% say they’ve experienced non-inclusive behaviors at work, and
37% say they work in a psychologically unsafe environment.

But it’s not just employees complaining. Leaders in the survey admit they see issues.

23% of company leaders say employee satisfaction has dropped in the past year
24% of leaders say employee well-being has dipped, and
47% of leaders say their Diversity, Equity and Inclusion (DEI) strategy only pays lip service to underrepresented groups.

“As organizations enter a post-pandemic era, those that prioritize building a resilient workforce by focusing on the three pillars {workforce agility, DEI and workforce capability} will be better equipped to adapt to the future of work and thrive in changing market conditions,” says Browning.

Let’s change what’s wrong with employee engagement

Employees are disenchanted. Leaders even wonder if there will ever be an employee engagement evangelization.

“Our research shows that U.S. employees are in the midst of a connection crisis at work and currently, only 36% of employees reported feeling engaged at work,” says Dr. Jacinta Jiménez, PsyD, Vice President of Coaching Innovation at BetterUp, and author of The Burnout Fix. “When we don’t have relationships at work, we’re more likely to feel burned out, stressed out, and — you guessed it — disengaged.”

So let’s look at the biggest threats to employee engagement right now — and expert advice on how to keep each one at bay or resolve it before it hurts the workplace.

Issue 1: DEI plans are failing

It’s a sobering truth: DEI initiatives have plateaued, or even dropped off in some cases, the Kelly survey found. For instance, Just 20% of senior managers hosted open conversations on DEI last year, compared to the 30% that did it in the previous year.

Leaders and employees are showing signs of DEI fatigue.

Bring it back: It’s time to pump resources and time back into DEI initiatives, especially diversity retention after hiring, as that has been declining. You might help employees with similar experiences connect, giving them the ability to start and support Employee Resource Groups (ERGs) around their similarities. Then let them talk with and share their experiences with people who don’t have the same background.

Issue 2: Agility is limited

Many employees feel their ability to change direction quickly is limited within their organizations. They can’t make decisions about their work and careers without jumping through hoops or waiting for approval. And that makes them feel constrained by their jobs.

Bring it back: Regardless of where employees work — remote, hybrid or on-site — organize quarterly reviews of work flow and progress. Ask employees to keep an eye out for bottlenecks and road bumps that prevented them from completing tasks as quickly as they anticipated. These reviews help eliminate issues that prevent agility across teams and in individual performance.

Issue 3: Flexibility doesn’t feel flexible

Companies created flexible work arrangements for employees out of necessity when the pandemic hit. And now they’re reeling back — for a variety of reasons — to the discontent of some.

About 80% of all companies have some degree of flexibility, but just 44% of those companies have formal policies around flexible work arrangements, according to an XpertHR study.

“This finding may reflect some uncertainty around the future of flexibility in the workplace,” says Victoria Kelleher, Lead Survey Specialist at XpertHR. “Although flexible work has become far more common, employers seem reluctant to guarantee the options they currently offer to employees indefinitely.”

That has lead to some disengagement. Employees almost always prefer clarity and predictability.

Bring it back: If you don’t have it by now, and you intend to maintain hybrid and remote work, create a policy that governs the work. Address logistics, work quality and quantity expectations, collaboration expectations, etiquette, and beyond.

Issue 4: Stability is wavering

Employees have lots of reasons to worry about their jobs — layoffs, the rise of Artificial Intelligence (AI) and its potential to eliminate jobs, a weakening economy, etc. They fear the loss of work and the benefits they and their families often rely on.

So they might be over-stressed (quite possibly, unnecessarily) and under-engaged.

“As HR leaders, it is our responsibility to tend to the needs of all employees during times of change,” says Trevor Bogan, Regional Director of the Americas at Top Employers Institute. “By creating a workplace culture that values employee mental health and well-being, we can help ensure that our team stays positive, resilient and supported throughout these challenging times.”

Bring it back: It comes back to transparency. In good and, more importantly in bad, times you want to be honest, clear and direct with employees. That way, they can plan what’s next, whether that’s digging in and becoming more engaged with their organization or looking elsewhere.

Issue 5: Safety is fleeting

People don’t feel as safe as they once did nearly everywhere they go. And while the workplace might have limited physical safety issues, employees don’t always feel psychologically safe there. And that hurts engagement.

“Psychological safety is the shared feeling that you can share your thoughts, opinions, and ideas without fear of being degraded or shamed,” says Jiménez. “An effective team values psychological safety as much as physical safety and performance standards.”

Bring it back: Jiménez suggest you take a closer look at your employee experience — perhaps with surveys or focus groups. Then find opportunities to naturally add time to make connections and reinforce psychological safety behaviors such as listening, sharing and reassuring.

In a psychologically safe workplace, you’ll see: