The state of employee engagement around the world 

    
    
After hitting a high in 2020, employee engagement is now on the decline.i

Energizing engagement will be a top priority for employers. What that looks like will differ from one region to another. Diversity, equity and inclusion, for example, are more often measured as part of engagement in US and European businesses. These employers want to ensure their workforces reflect the diversity of their societies and comply with legal requirements.

As employers address their engagement priorities, new technology and AI promise real-time, detailed data insights and can even provide recommendations on appropriate actions to take. But it’s how employers use these insights, make connections across HR silos and manage change that counts. 

For an overview of employee engagement in your region and tips for attracting and retaining future-fit talent, take a look at the results by geography.

As employers attempt to get engagement back on track, they are also grappling with:

  • Meeting evolving employee expectations in the aftermath of the pandemic and ongoing disruptions, with a spotlight on well-being and hybrid work
  • Transforming the business to address employee exhaustion while embracing technology and new work models
  • Creating a customized employee experience that’s simple, personally relevant and enabled by technology

Engagement results from almost nine million employees in 130 countries over a five-year period reveal the cause of this dip in engagement and demonstrate how these trends play out globally and across different regions.

Global engagement is declining but varies worldwide

Despite falling from record levels, employee engagement remains strong overall.
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  • Global: Having reached a record high in 2020, decreasing motivation, pride, job satisfaction and loyalty drive the dip in engagement. 
  • GCC and LATAM: Engagement is on the decline but is yet to drop below 2019 levels.
  • Europe: Europe is the only region with an uptick in engagement in 2022 and 2023, with results varying over the last five years.
  • APAC and US & Canada: Engagement has fallen to 2019 levels.

What drives employee engagement?

Organizations’ strategies for enhancing the employee experience now extend beyond annual engagement surveys. They are delving into specific topics at a more detailed level to truly understand what matters most to employees. To align with this focus, employers are increasingly running pulse surveys dedicated to priority areas such as diversity, equity, and inclusion or risk. They are also deploying additional research tools to gain a clearer picture of their workforce.

Feeling energized in their role, being confident they can reach their full potential and being valued as an employee remain among the top drivers of engagement this year. 

Global engagement drivers 

  1. I am excited about my company’s future.
  2. I feel energized and enthusiastic in my current role.
  3. I can reach my full potential at my company.
  4. I feel valued as an employee.
  5. I am treated fairly at my company.
Source: Mercer’s 2024 global benchmarking employee data 

With the above engagement drivers in mind, it’s no surprise that employers are zeroing in on employee well-being. This goes beyond health-focused benefits, and instead considers the nature of work itself. Employers want to improve employees’ sense of belonging by understanding their approach to teamwork, workload and the reality of work-life balance. In the US and Europe, a culture that values diversity and inclusion is also high on the agenda. 

These insights correspond to employee perspectives from this year’s Global Talent Trends study:

  • Having an organizational purpose to be proud of, feeling a sense of belonging, and feeling valued for their contributions are the top three drivers of employees’ ability to thrive at work. 
  • Designing work for well-being is the number one thing employees say will make a difference to their well-being at work. 
  • For the first time ever, fair pay is the second most important reason employees stay with their employer, following job security.  

The state of employee engagement

iMercer’s global normative data 2020-2023
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