A recent study by HR.com's Research Institute indicates employee engagement levels have improved modestly from 23% in 2022 to 30% in 2025. Despite this progress, over 40% of HR professionals report the average employee remains poorly engaged, highlighting a significant challenge for organizations. The research, titled 'State of Employee Productivity and Engagement 2025', serves as a critical benchmark for the industry, revealing both advancement and persistent gaps in how companies approach workforce management.
The study identifies culture, leadership, and the intelligent use of technology as the key drivers of engagement. However, a substantial disconnect exists between recognizing these drivers and implementing effective strategies. For instance, only 45% of organizations continuously work to improve culture, and a mere 14% train managers specifically on how to engage employees. This implementation gap suggests many HR initiatives may be superficial rather than transformative.
In contrast, organizations where managers prioritize engagement see markedly better outcomes. More than 70% of these organizations report their managers give regular feedback, build trust, and act on employee input. This correlation underscores the pivotal role of frontline leadership, a finding with direct implications for vendors offering leadership development and manager training solutions. The full study details are available at https://www.hr.com.
Emerging technologies, particularly artificial intelligence, are highlighted as potential tools to enhance both engagement and productivity. Although adoption remains limited, with only 36% of organizations currently using AI for productivity-related tasks, the technology is viewed as a means to reduce administrative burdens. This reduction could free up managerial and HR time for more meaningful, engagement-focused employee interactions. For HR technology vendors, this represents a significant market opportunity to develop and promote AI solutions that address core engagement challenges.
Debbie McGrath, Chief Instigator at HR.com, emphasizes that engagement is not a one-time metric but an ongoing strategy requiring sustained investment in leadership, culture, and smarter tools. The study ultimately serves as a call to action for organizations to move beyond periodic initiatives and address the foundational elements of employee engagement systematically.
For the HR vendor community, these findings clarify market needs and pain points. The persistent engagement gap, coupled with low rates of strategic implementation in culture and leadership development, indicates strong demand for solutions that help organizations execute effectively. The growing interest in AI for productivity suggests a receptive market for technologies that enable a strategic focus on engagement. The study's data provides vendors with evidence-based insights to tailor their product development, marketing, and sales strategies to address the most critical and underserved areas of human resource management.
