U.S. Employee Engagement Inches Up Slightly After 11-Year Low

After hitting an 11-year low in the first quarter of 2024, U.S. employee engagement improved slightly in the second quarter, rising from 30% to 32% being fully engaged at work. This uptick translates to an increase of 3.2 million American full- and part-time workers feeling involved in and enthusiastic about their work.

While this increase in engaged employees falls short of the 2020 U.S. high of 36%, it mirrors the levels seen throughout most of 2022. Actively disengaged employees decreased slightly from 17% in the first quarter of 2024 to 16% now.

Employee engagement in the U.S. has not returned to pre-pandemic levels, but improvements in quarter two of 2024 are most pronounced in foundational elements: knowing what’s expected at work; having materials and equipment to do work right; and having an opportunity to do what employees do best. Each of these elements saw an increase of four points or more in the percentage who strongly agree. Employees’ ratings on each of these elements had become vulnerable in the second half of 2021, contributing to a decline in overall employee engagement.

Notable changes in the second quarter include:

• The percentages of engaged leaders (+4 percentage points) and managers (+3 points) each increased, with significant improvement in clarity of expectations for both groups.
• Younger employees (aged 34 and younger) have increased in strong agreement that they have the ability to do what they do best (+6 points). The percentage of Gen Z employees who strongly agree on this item increased by nine points.
• Gen Z employees also have positive momentum in their reports of receiving meaningful feedback (+8 points), feeling the organization cares about their wellbeing (+6 points) and getting recognition or praise for good work (+5 points).
• Older employees, typically less affected by engagement declines, showed increases in overall engagement (+3 points), having an opportunity to do what they do best (+5 points), clarity of expectations, and having the materials and equipment to do their work right (both +5 points).
• Employees who exclusively work from home are now more highly engaged (+5 points) compared with the previous update. This group increased in strong agreement by six points or more in several important workplace elements: doing what they do best, having clarity of work expectations, having the materials and equipment to do their work right, feeling the organization cares about their wellbeing, and receiving meaningful feedback.
• The engagement of fully on-site workers improved by three points. Hybrid employees did not significantly change in overall engagement from the first to second quarter.

Overview

After steady declines in employee engagement beginning in the second half of 2021 -- particularly among younger and remote workers -- organizations may be starting to settle into the “new normal” ways of hybrid and remote work, especially concerning basic engagement elements related to role clarity. While only 23% of employees strongly agree they have received meaningful feedback in the past week, this is a four-point increase from earlier this year. Organizational leaders still have a long journey ahead, but the recent increases in employee sentiment toward their work and workplaces provide cautious optimism.