A motivated workforce is essential to business success. Yet Gallup reports that employee engagement is at the lowest level we’ve seen in a decade. What causes employees to become demotivated and disengaged? And what can employers do about it? This article breaks it all down.
Why a motivated workforce is so important.
A lack of motivation is often the first step on the path to employee disengagement. And, as we know, a disengaged workforce has real implications for the bottom line.
- New McKinsey research found that employee disengagement and attrition could cost a median-size S&P 500 company between $228 million and $355 million a year in lost productivity.
- When comparing employee engagement levels, Gallup found that companies with engaged workforces experience an 18% difference in productivity, a 23% difference in profitability, and higher earnings per share, among other positive financial metrics.
- Gallup found that organizations with high engagement experienced 21% less turnover (for high-turnover organizations) and 51% less turnover (for low-turnover organizations). This helps organizations avoid the very real cost of turnover, which is estimated to be up to 200% of an employee’s salary.
The state of employee engagement.
Gallup recently reported that just 31% of workers were engaged with their work in 2024. Younger generations, in particular, have seen sharp decreases in engagement: older millennials (those born between 1980 and 1988) experienced a seven point drop between 2020 and 2023; younger millennials and Gen Z employees (born 1989 or later) also saw a decline—from 40% to 35% engaged. In research conducted by WebMD Health Services in 2024, we found that of all the generations, Gen X was the most emotionally engaged with work, followed by millennials, Gen Z and Baby Boomers. Importantly, our research also noted that disengaged employees reported the highest levels of burnout.
What are some factors driving employee disengagement?
Many of the factors behind this employee engagement low can be traced back to the pandemic. Organizations have experienced massive change resulting in new organizational structures; additional job responsibilities for individual employees; and reduced organizational budgets. On the personal front, after an extended period of remote or hybrid work, many employees have been asked to permanently return to the office full-time; inflation has caused financial stress; and a childcare crisis has made it more difficult for parents to secure reliable childcare.
Employees’ feelings about work in general have also undergone a dramatic shift. Research by McKinsey found two-thirds of employees felt that COVID-19 had caused them to reflect on their purpose in life.Many employees don’t feel appreciated by their employer and are increasingly disconnected from their company’s mission or purpose. Younger members of the workforce are demanding better work/life balance and flexibility. They also desire to work for an employer who cares about them as people and provides support for their lives both inside and outside of work.
Common sources of demotivation.
But, the pandemic notwithstanding, there are some common organizational and individual-level factors that will always influence employee motivation, and ultimately, employee engagement. Tops on the list are:
- Poor leadership
- A toxic workplace culture
- Lack of employee appreciation and recognition
- Limited career development opportunities
- Excessive workloads and poor work/life balance
- Lack of autonomy over one’s work or decision-making
- Unclear work expectations
- Insufficient compensation compared to market standards
- A physical workspace (remote or in-person) that doesn’t support the employee’s needs.
8 tips for motivating employees.
So what can you do to motivate employees to show up ready to give their best?
- Offer meaningful work and clear goals. Demonstrate how employees’ work contributes to the company’s larger mission by outlining clear goals and regularly communicating business results. Having a sense of purpose — the why behind the what — can help employees feel like they’re doing something meaningful beyond just a job.
- Help employees feel they belong. Employees are trying to find a sense of belonging and stability in their places of work. They want to feel they can be authentic at work and develop meaningful relationships with colleagues. Members of Gen Z and millennials, in particular, want to work for inclusive organizations.
- Recognize employees. When their hard work is recognized, employees feel motivated and they’re less likely to leave. Recognition can be as small as a handwritten note, or more formal through employee recognition platforms like TINYpulse, which allow employers to offer a range of recognition awards and encourage employees to recognize peers. In fact, peer recognition has been shown to increase the probability of a constructive team culture by 2.5x.
- Offer work flexibility. Allowing workers the flexibility to choose their hours or work remotely, when possible, helps them better manage personal and professional responsibilities, especially for caregivers. When employers prioritize flexibility, a workforce feels trusted and supported. All of this leads to higher engagement, greater motivation and improved performance.
- Provide career advancement and professional development. Having well-defined career paths and robust learning and development opportunities can significantly boost motivation by giving employees a clear vision of their future—particularly for younger employees.
- Train people managers in best practices to support employees. The old adage is still true: employees leave bad bosses, not bad jobs. An effective leader motivates employees by communicating regularly about the company’s mission and business performance, offering feedback, recognizing contributions, modeling healthy behaviors, and helping employees find meaning and purpose in their work.
- Collect regular feedback so employees feel heard. Employees are motivated when they can provide upward feedback to leaders and managers. Employee listening tools like TINYpulse can help managers and leaders gather employee feedback and then respond to that feedback.
- Create a motivating work environment. Dedicated space for collaboration as well as focused work; biophilia (plants, greenery, and fountains); natural lighting; and outdoor spaces to get physical activity or simply be outdoors all enhance the work experience and increase motivation. For employees who work remotely, ensure they have the right tools to collaborate with coworkers and an ergonomic, safe workspace.
Having a motivated workforce is essential to business success. On the heels of the pandemic and changing attitudes toward work, it’s critical to think strategically about what will motivate your employees to bring their A-game to work each day.
Boost employee motivation with TINYpulse.
Communication and feedback can significantly boost motivation. Our employee engagement solution, TINYpulse, streamlines internal communication and feedback collection to create a company culture of trust and transparency. Book your demo today to find out how TINYpulse can take your employee motivation to the next level!
