Engaged employees produce measurable business outcomes. Gallup research shows that organizations with highly engaged teams see 23% higher profitability, up to 18% higher productivity and 51% less turnover*. Disengagement carries a stark cost: Disengaged employees cost the U.S. an estimated $2 trillion in lost productivity. From customer engagement to retention to safety, engagement affects nearly every metric that matters.

*For low-turnover organizations with 40% or lower annualized turnover.

Many employees feel emotionally detached from their workplaces. Fewer than one in three employees feel strongly connected to their company’s mission, and most are watching for new opportunities. Gallup's 2025 data found that less than half of employees (47%) strongly agree they know what is expected of them at work, which is a foundational element of engagement. Weak culture, unclear expectations and limited recognition all contribute to detachment. Addressing these drivers of employee engagement is vital to creating more engaged employees.

AI is changing how work gets done, but many employees don’t see how it applies to their role. Only 26% say their organization has communicated a clear plan for integrating AI. Leaders should align their technology with their employee engagement strategy, positioning managers to model AI use, explain its value and connect it to daily work. Gallup data show that employees whose managers actively support AI use are 2.1 times as likely to use it a few times a week or more, making manager enablement the most effective approach for advancing adoption and engagement together.

As AI adoption and organizational change reshape what roles require, less than half of U.S. employees participate in job-related training. In 2025, 59% of CHROs said development is one of the elements of the employee experience their organization struggles with most, up 16 percentage points from the prior year. Workers want clear opportunities to learn and grow, and organizations that invest in development see higher productivity and retention. Closing the development gap remains one of the most direct ways to improve employee engagement and enhance the overall employee experience.

Managers are essential to improving employee engagement. Gallup research shows they account for 70% of the variance in team-level engagement. With the right development and support, managers positively affect each of the 12 elements of employee engagement — from setting clear expectations to recognizing great work to coaching for growth.