U.S. Employee Engagement Bounces Back from 11-Year Low

Following an 11-year low in early 2024, employee engagement across the U.S. workforce is beginning to bounce back, likely due to increased confidence among workers in flexible work environments and rising engagement from Gen Z 

Gallup reports that employee engagement rose from 30% to 32% in the second quarter of 2024. Although the rise seems modest, experts say it translates to an additional 3.2 million American full- and part-time workers who now feel more involved and enthusiastic about their work.  

Despite overall engagement still being below pre-pandemic levels, these recent gains suggest a more positive outlook for the workforce. As more organizations settle into flexible work environments this year, the key areas driving the uptick include improved role clarity, better access to necessary work materials and equipment, and greater opportunities for employees to leverage their strengths.  

Younger workers are particularly gaining more confidence in their roles this year. Gallup’s survey reveals a strong increase in employee engagement among Gen Z. Notably, there is a nine-point increase among Gen Z employees who strongly agree with that “they have the ability to do what they do best.” Gen Z employees also saw an eight-point rise in reports receiving meaningful feedback and a six-point increase in feeling that their organization cares about their wellbeing. The data shows how employers are beginning to adjust to the unique work-life preferences of young talent. Older employees also reported gains, but to a lesser extent (+3 points).  

Another significant finding from Gallup’s report is the difference in engagement levels among various work environments. Employees working exclusively from home are now more engaged, experiencing a five-point increase compared to Gallup’s previous engagement update.  

Fully on-site workers saw a three-point rise in engagement. The survey found that hybrid workers did not record any significant change in their overall engagement from the first to the second quarter — indicating potential areas where more attention and improvement might be needed. 

Although the work to reignite workforce engagement is far from over, the current upward trend offers cautious optimism for employers. If organizations focus on key areas such as defining clear roles and expectations, providing necessary resources, and creating a supportive work-life environment, employers can likely improve attraction and retention this year. By doing so, employers can also create a workplace that not only produces higher employee engagement but also improves productivity and business performance.