Why Employee Engagement is the Key to Business Success in 2025 (And How to Improve It)

Mar 8, 2025 | Human Resources

By Tiff Walker

Employee engagement is no longer a nice-to-have—it’s a business necessity. In 2025, organizations that prioritize engaged, motivated, and fulfilled employees will have a competitive edge, while those that neglect engagement will face high turnover, low productivity, and declining morale.

But here’s the challenge: Only 23% of employees worldwide are engaged at work, according to Gallup’s State of the Global Workplace 2024 report. That means the vast majority of employees feel disconnected from their work—costing businesses billions in lost productivity.

 So, what exactly is employee engagement, why does it matter now more than ever, and how can businesses take actionable steps to improve it? Let’s break it down.

What is Employee Engagement (And Why Does It Matter)?

Employee engagement is more than just job satisfaction—it’s about how emotionally connected employees are to their work, their team, and their company’s mission. Engaged employees are:

✅ More productive – Highly engaged employees are 17% more productive than disengaged employees (Gallup, 2024).

✅ More likely to stay – Companies with strong engagement strategies experience 43% lower turnover rates (SHRM, 2024).

✅ More profitable – Businesses with high engagement levels are 21% more profitable than those with low engagement (Harvard Business Review).

Yet, despite these numbers, most organizations struggle to engage their workforce—especially in an era of remote work, digital burnout, and shifting employee expectations.

Why Employee Engagement is Critical for Business Success in 2025

1. The Great Disconnection: More Employees Are “Quiet Quitting”

The trend of “quiet quitting”—where employees do the bare minimum—has skyrocketed.

According to Gallup, 59% of employees are “not engaged” or “actively disengaged” at work.

This means that nearly 6 in 10 employees are mentally checked out—costing companies money and innovation.

2. Employee Expectations Have Changed

Employees today expect more than just a paycheck—they want:
🔹 Purposeful work that aligns with their values.
🔹 Flexibility, including remote/hybrid options.
🔹 Career development and growth opportunities.
🔹 A positive and inclusive workplace culture.

Failing to meet these expectations means losing top talent to companies that do.

3. Engagement Directly Impacts Customer Satisfaction & Revenue

Companies with highly engaged employees have higher customer satisfaction scores and generate 147% higher earnings per share compared to their disengaged competitors (Forbes, 2024).

The logic is simple: Engaged employees = Better service = Happier customers = Higher profits.

How to Improve Employee Engagement in 2025

The good news? Employee engagement isn’t just a buzzword—it’s something businesses can actively improve. Here’s how:

 1. Strengthen Leadership & Communication

📌 Why It Matters:
Employees don’t quit jobs—they quit bad managers. 70% of engagement variance is linked to leadership (Gallup).

📌 Solutions:
✅ Train managers to be coaches, not just bosses.
✅ Encourage open-door policies and honest feedback loops.
✅ Provide leadership development programs to empower mid-level managers.

➡️ How Walking Strong Solutions Can Help:
We offer ICF-certified leadership coaching to develop managers who engage, inspire, and retain top talent.

2. Recognize & Reward Employees Regularly

📌 Why It Matters:

Lack of recognition is one of the top reasons employees leave (WorkHuman, 2024). Employees who feel valued and appreciated are 2.7x more likely to be engaged.

📌 Solutions:
✅ Implement a formal employee recognition program (e.g., Employee of the Month, bonuses, public shoutouts).
✅ Offer personalized incentives based on employee preferences.
✅ Encourage peer-to-peer recognition to foster a culture of appreciation.

➡️ How Walking Strong Solutions Can Help:
We help businesses design and implement employee recognition programs that boost morale and engagement.

3. Invest in Career Growth & Development

📌 Why It Matters:Employees who feel stagnant in their roles are more likely to disengage and leave. In contrast, companies that offer career growth opportunities see 34% higher retention rates (LinkedIn Workplace Learning Report, 2024).

📌 Solutions:
✅ Offer professional development training and mentorship programs.
✅ Create clear career paths so employees see a future within the company.
✅ Provide ongoing learning opportunities through workshops and certifications.

➡️ How Walking Strong Solutions Can Help:
We provide customized training and development programs to help businesses upskill their workforce and retain top talent.

4. Build a Strong, Inclusive Workplace Culture

📌 Why It Matters:

Diversity, Equity, Inclusion, and Belonging (DEIB) directly impact employee satisfaction and engagement. Companies with diverse and inclusive cultures see 2.3x higher engagement rates (McKinsey, 2024).

📌 Solutions:
✅ Implement inclusive hiring practices and DEIB training.
✅ Foster psychological safety, where employees feel comfortable voicing opinions.
✅ Encourage team-building activities and social connections at work.

➡️ How Walking Strong Solutions Can Help:
We help businesses create inclusive, engaging work environments that promote collaboration, innovation, and retention.

5. Prioritize Employee Well-Being & Work-Life Balance

📌 Why It Matters:

Burnout is one of the top reasons employees disengage. A 2024 survey found that 84% of employees experienced burnout last year, leading to lower productivity and higher absenteeism (American Psychological Association).

📌 Solutions:
✅ Offer flexible work arrangements (hybrid, remote, or flexible hours).
✅ Provide mental health resources and stress management programs.
✅ Encourage healthy work-life boundaries and avoid overworking employees.

➡️ How Walking Strong Solutions Can Help:
We develop workplace well-being programs that reduce burnout and increase engagement.

Final Thoughts: Employee Engagement is the Future of Work

The companies that prioritize employee engagement in 2025 will be the ones that attract and retain top talent, increase productivity, and drive business success.

At Walking Strong Solutions, we provide tailored HR strategies to help businesses boost engagement, strengthen leadership, and create a workplace where employees thrive. 

📩 Want to improve engagement in your workplace? Let’s talk! Contact Walking Strong Solutions today.

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