Employee disengagement is a growing challenge in 2025, and you are likely feeling its impact. Productivity is slipping, motivation is low, turnover is on the rise, and employees are continually asked to ‘do more with less.’ But the reasons behind disengagement aren’t always obvious.
The problem is traditional engagement methods haven’t kept up with today’s workplace dynamics. Annual surveys offer a snapshot in time, but they miss the ongoing shifts in employee sentiment.
In this article, you will learn how to identify issues early, take meaningful action, and create a culture where employees feel heard and valued.
Why disengaged employees are a growing challenge in 2025
Employee engagement has been steadily declining, and the latest research from Gallup reveals a troubling trend. Only 31% of U.S. employees are actively engaged at work, while 17% are actively disengaged—the highest level of disengagement in nearly a decade.
Gallup. (2025). Employee engagement sinks to a year-low. Gallup. https://www.gallup.com/workplace/654911/employee-engagement-sinks-year-low.aspx
As more businesses navigate economic uncertainty, shifting workplace expectations, and evolving job demands, employees are feeling more disconnected than ever. To stay competitive, organizations must understand what’s driving disengagement and take proactive steps to address it.
Here are some of the biggest factors contributing to the rise of disengagement:
- Burnout: High workloads, overwhelming demands, and blurred boundaries - especially in remote or hybrid environments -can leave employees mentally and emotionally exhausted. Without regular chances to voice concerns, burnout often goes unnoticed and unresolved.
- Lack of feedback and action: When employees are unable to provide feedback or feel their voice is ignored, they start to feel disconnected from your organization. This lack of communication erodes trust and leads to frustration, which causes disengagement. Many organizations gather feedback without taking meaningful action, leaving employees feeling unheard and frustrated.
- Limited growth opportunities: Without clear paths for career advancement or professional development, employees start to feel stuck in their roles. They lose motivation and become disengaged as a result.
- Weak organizational culture: When your company's culture doesn’t align with its values or lacks clear direction, employee engagement suffers. Without strong feedback loops, recognition, and a sense of belonging, employees become disconnected and demotivated.
- Changing workplace dynamics: The shift to remote and hybrid work has reshaped how employees engage with their organizations. Without intentional efforts to build connection, reinforce culture, and provide equal opportunities for advancement, engagement will continue to decline.
The impact of employee disengagement
As disengagement increases, it can have a negative impact on employees and your workplace. If left unaddressed, the effects become harder to reverse, making it critical to understand the full scope of its impact on stability and long-term success. Here’s how disengagement can impact your organization:
- Psychological impact: Disengagement causes employees to experience higher stress levels, frustration, and burnout. Over time, this mental strain makes it harder for employees to perform effectively.
- Impact on productivity: Disengaged employees put in less effort and contribute less to team goals. Their lack of motivation stifles innovation, slows progress, and hinders the organization's ability to reach its goals.
- Business performance: As disengagement spreads, employee turnover increases. This leads to higher recruitment costs, loss of talent, and disruption of team dynamics.
- Career stagnation and turnover: Employees who feel their career is stagnating are more likely to leave your company. This leads to higher turnover rates, which disrupts team cohesion and increases recruitment and training costs.
- Cultural deterioration: As disengagement grows, your organization’s culture can deteriorate. When employees disconnect from the company’s mission and values, it weakens team morale and can create a toxic work environment, which makes it even harder to retain talent.
The role of employee surveys in engagement
Employee surveys and continuous feedback loops are critical tools for sustaining employee engagement and addressing disengagement early. These tools help you:
- Understand employees' concerns in real-time
- Identify issues before they escalate
- Create a transparent, trusting work environment
- Act on feedback in an impactful way
Traditional methods are often reactive rather than proactive, missing the opportunity to engage employees before problems arise. According to recent research in partnership with HR.com, the most common methods used to measure engagement are:
- 64% use exit interviews
- 58% rely on annual surveys
- 53% focus on retention rates
These methods typically occur after an employee has disengaged or left the company. This is why continuous feedback is a game-changer. Unlike annual surveys, they enable leaders to keep a pulse on engagement over time and respond to concerns as they arise. This allows you to make adjustments before issues escalate and helps drive continuous improvement in engagement.
Anonymity drives honest feedback
Anonymity also plays a crucial role in gathering honest, actionable feedback. Without the assurance of anonymity, employees may hesitate to speak up, which can lead to skewed results and missed opportunities for improvement.
When employees are assured their responses are anonymous, they are more likely to share their true feelings. This results in more valuable insights, creating a safer environment for discussing sensitive issues.
You can’t drive change without taking action on feedback
Surveys and feedback only work if organizations are willing to take action on the insights they gather. Our data reveals that only about half of organizations take significant actions to improve engagement based on feedback, and two-fifths fail to communicate survey results across the organization. Meanwhile, we found that 77% of highly engaged organizations prioritize taking specific actions based on employee feedback.
With that in mind, the true value of surveys lies in the ability to act quickly. It’s important to implement solutions and change that shows employees their feedback is heard. Taking action will help you improve engagement and build a culture of trust.
How to use technology to motivate disengaged employees
Employee surveys and structured feedback mechanisms are essential for understanding and addressing disengagement effectively. In fact, our research proves that organizations that embrace employee survey technology see substantial improvements in several key performance areas. For example, 93% of organizations that invested in employee survey software reported a positive or neutral ROI, with 65% seeing higher employee productivity and performance.
Real-time analytics
Leveraging technology to track engagement allows companies to measure employee sentiment continuously. Unlike traditional methods like annual surveys, real-time analytics enable leaders to quickly spot early signs of disengagement. This is where technology truly shines — by providing instant access to valuable data, leaders can take swift action to resolve issues before they escalate.
Measure progress over time
Furthermore, the right survey software allows companies to track and measure progress over time. By continuously aligning employee feedback with strategic goals, you can foster a cycle of ongoing improvement. This cycle ensures that feedback doesn't just sit in a report; it actively drives engagement and keeps employees aligned with the company's mission.
Actionable insights
When selecting a survey tool, look for one that does more than just collect data. It should offer actionable recommendations and include tools to help you track progress over time. Having an action plan for survey responses ensures that employee feedback actually leads to meaningful changes, ultimately driving more growth and retention.
Learn from highly-engaged organizations
Our research finds that almost half of highly engaged organizations say a whopping 80% of their workforce is highly engaged. Here’s what we know about these organizations in comparison to less engaged ones:
- They measure employee engagement: 58% of highly engaged organizations measure employee engagement, compared to just 44% of less engaged organizations.
- They collect data more frequently: 56% of highly engaged organizations collect engagement data at least twice a year or quarterly, while only 39% of less engaged organizations do the same.
- They share data: 41% of highly engaged organizations share data in real-time with leaders, compared to only 28% of less engaged organizations.
- They take action based on their data: 77% of highly engaged organizations take specific action based on engagement data, versus just 33% of less engaged organizations.
- Leaders take responsibility: 84% of highly engaged organizations are more likely to place responsibility for improving employee engagement on immediate supervisors, compared to only 53% of less engaged organizations.
Proof that employee engagement drives success in 2025
Now that we've shared the data, it's time to see the real impact. Let’s explore how leading organizations are turning these strategies into tangible results. These examples prove that engagement isn't just a concept, but a driving force behind success.
Harris Computer increases employee engagement with WorkTango Surveys & Action Plans
Harris Computer, a global software leader, grew from 3,000 to over 15,000 employees in just seven years. With a decentralized structure, maintaining consistent employee engagement became increasingly difficult. WorkTango’s Surveys & Insights platform provided the scalable solution they needed, empowering leaders to own engagement strategies and drive real change.
Results:
- 24-point increase in overall employee Net Promoter Score (eNPS)
- 20-point increase in eNPS among frontline and midline managers.
- +12% increase in employee reports of having quality 1:1 time with their managers.
- Consistent year-over-year engagement growth, supporting their long-term success and retention.
Rexall Discovers Endless Survey & Insight Possibilities
Rexall, one of Canada’s largest retail pharmacy chains, knew they needed to take their employee engagement strategy to the next level. With a goal to expand engagement across all business operations, they turned to WorkTango’s flexible, responsive platform. Rexall’s leaders gained deeper insights into employee feedback, allowing them to make data-driven decisions that continuously improved the employee experience and fostered a culture of active listening.
Results:
- 34% increase in overall engagement score, from 43.5% to 77.5%.
- 20% increase in leadership scores, strengthening leadership impact on employee engagement.
- eNPS score jumped from 12.2 to 42.2 over the course of a year.
- Increased employee trust and actionable insights that continuously improve engagement strategies.
