People Element has released its 2026 Employee Engagement Report, providing analysis of workforce engagement trends and the factors influencing employee experience across industries.
Drawing on feedback from more than 94,000 employees, the report finds that employee engagement reached 59% in 2025, reflecting a modest recovery from recent declines. Despite this improvement, the findings indicate that a substantial portion of the workforce remains not fully engaged.
The report identifies three primary drivers of engagement: communication and employee voice, growth and value, and leadership effectiveness. These factors have remained consistent over multiple years, suggesting that engagement outcomes are tied to sustained organizational practices rather than short-term initiatives.
“The data indicates that while engagement levels have improved, the recovery remains fragile,” said Chris Coberly, CEO of People Element. “Organizations that maintain focus on employee feedback and follow-through will be better positioned to sustain progress.”
The report also outlines several workplace trends affecting engagement in 2026, including increased manager burnout, gaps between executive and employee perceptions of artificial intelligence, continued tension around return-to-office policies, and declining voluntary turnover rates.
Notably, the report highlights a disconnect in AI sentiment, with 76% of executives reporting that employees are excited about AI, compared to 31% of employees indicating the same. Additionally, lower quit rates may obscure underlying disengagement, as employees remain in roles while reporting lower levels of motivation and connection.
The findings suggest that retention alone may not be a sufficient indicator of engagement, and that organizations may need to assess employee experience more directly.
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