Sharp Decline in U.S. Employee Engagement: Hits 11-Year Low

In the first Quater of 2024, U.S. employee engagement reached its lowest point in 11 years, with a notable decline of 4.8 million engaged workers compared to the fourth Quater of 2023. (Gallup)

A survey by Gallup showed that the decline in employee engagement elements was notably pronounced among remote, hybrid, and younger workers. By the conclusion of 2023, 33% of U.S. employees overall were highly engaged, indicating high levels of involvement and enthusiasm about their work and workplaces. Sadly, the first quarter of 2024 persisted in this downward trajectory, witnessing a three-percentage-point decrease to 30% among both full- and part-time employees. This downturn signifies a reduction of 4.8 million engaged employees, marking the lowest reported level of engagement since 2013.  

According to Gallup’s chief scientist of workplace management and well-being, Jim Harter, the engagement ratio for Gen X employees has decreased from 2.1 to 1.7. This indicates that for every actively disengaged Gen X employee, there are now fewer than two engaged ones. Among older millennials, the engagement ratio has dropped from 3.3 to 1.9, meaning there are just over two engaged employees for every actively disengaged one in that age group.

Harter noted that these reduced engagement figures have significant costs, as it is much more expensive to replace talent than to nurture existing employees. Disengaged employees are more likely to look for new job opportunities. He explained that today’s young workers, more than older generations, invest in their growth and seek jobs with meaningful purposes. Since 2020, younger workers have felt less cared for and have found fewer opportunities aligning with their aspirations.

He also observed that older workers have not been as affected by these issues, as many had established their careers long before the pandemic, making them more resilient to recent changes. Harter pointed out that before the pandemic, baby boomers reported lower engagement than younger workers. Despite a decline in clarity of expectations across all generations, six in ten baby boomers still know what is expected of them, compared to fewer than one in two younger employees.  

Despite the overall downward trend, some organizations have managed to maintain or even improve their employee engagement levels. These high-performing organizations are found across various industries and locations. They have achieved their success through strategic planning and intentional culture-building. Many of these organizations have developed hybrid working environments that align with their cultures, providing clear expectations and combining flexibility with accountability through coaching managers. They also have effective onboarding programs for new employees and adopt holistic, multidimensional approaches to employee wellbeing, offering a variety of services and resources.