Perceptyx, the AI company for employee experience, today released new research revealing a historic reversal in what drives employee engagement in the workplace. A ten-year longitudinal analysis of over 20 million global employee survey responses shows a striking shift in 2025: belonging and feeling valued, once the strongest predictors of high engagement, now rank among the lowest. Taking their place, employees now prioritize confidence in senior leadership and how well their organization adapts to change. The data suggests a pivot toward performance and strategic clarity over traditional culture markers.
“For nearly a decade, the strongest drivers of engagement were emotional and culture-based,” said Brad Wilson, Global Head of Workforce Insights and Innovation at Perceptyx. “In 2025, that has now flipped into the biggest shift we’ve ever recorded. Employees aren’t asking, ‘Do I feel valued today?’ They’re asking, ‘Do I believe this company will succeed and will I succeed with it?’ Amid economic uncertainty, reorganizations, and fluctuating talent markets, employees are increasingly evaluating organizational stability and leadership effectiveness. It’s no longer about perks, morale programs, or managerial support.”
Research from over 20 million employee responses analyzing the top five drivers of engagement from 2016 through to 2025 revealed:
- Feelings of belonging and feeling valued, the consistent #1 and #2 engagement drivers from 2016 through 2024, fell to the bottom positions (#4 and #5, respectively) in 2025. This marks the most dramatic shift in top engagement drivers since Perceptyx began its benchmark database 20 years ago.
- Change is handled effectively in my company has risen to the top driver of employee engagement in 2025, its highest position ever on record. Employees who believe their organizations effectively handle change report markedly higher levels of commitment, pride, motivation, and willingness to recommend their company as a great place to work.
- Confidence in senior leadership has emerged as the #2 predictor of employee engagement in 2025, despite not ranking in the top five before 2021. While it ranked #3 in 2024 and held the #4 spot from 2021 to 2023, it did not appear in the top five from 2016 through 2020.
Deeper analysis revealed:
- Employee engagement becomes extra vulnerable during change. Employees report that advocacy and their intent to stay declines first after major disruptions such as layoffs, reorganizations, or post-merger integrations, further highlighting the importance of handling change effectively in today’s economic climate.
- Employees who feel a strong sense of personal accomplishment and growth report significantly higher engagement. Those who strongly agree their work contributes to organizational progress score more than 40 points higher in both trust and engagement.
- Employees are 3.5 times more likely to stay when they feel they have meaningful input into workplace decisions – a clear signal that effective leadership through change depends on fostering dialogue.
To help organizations diagnose these shifts, Perceptyx today announced the launch of its new Engagement Model, a modern framework that breaks engagement down into four core dimensions: Pride, Advocacy, Intent to Stay, and Accomplishment. The framework moves beyond simple survey scores to reveal patterns of belief, motivation and experience that gives leaders a clearer understanding of their organizational engagement and informs targeted actions.
“Leaders are operating in a moment when confidence is the currency of performance,” Wilson added. “The Perceptyx Engagement Model helps organizations pinpoint exactly where confidence is breaking down and how to rebuild it.”
In today’s climate, understanding the current drivers of employee engagement gives leaders a clearer view into retention, innovation, and performance risks. Organizations that can successfully align culture, leadership, and employee experience around the top drivers will be positioned to outperform their peers.
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