Key Engagement Trends Shaping the 2025 Workplace

As businesses focus on growth and optimisation in 2025, HR leaders must prioritise strategies that boost productivity and retention. Our latest Workplace Engagement Index highlights three key areas shaping workplace engagement this year:

1. Building a culture of appreciation 
2. Redefining the role of leadership & management 
3. Rethinking competitive compensation 

Here’s a closer look at what each of these pillars means for organisations in 2025 and some the key stats that came out of our latest research.

1. Building a culture of appreciation to improve employee wellbeing, connection and belonging

• 43% of employees say recognition is the #1 driver of productivity. Jumping 10% from last year.
• Just 23% of Australian employees feel appreciated, a significant drop from 38% in 2024.
• Legal, Manufacturing & Utilities, and Travel & Transport industries prioritise recognition the most. 

Takeaway: Thoughtful, personalised recognition is more cost-effective than salary increases in driving engagement and retention.

2. Redefining the role of leadership & management and empowering managers to empower their teams

• 41% of employees say strong leadership boosts productivity, making it the second most important driver.
• 74% of managers feel fulfilled and supported, but only 67% say they received enough training.
• HR leaders rank strong leadership as the #1 productivity driver, above recognition and pay.

Takeaway: Investing in manager training improves engagement, retention, and business performance.

3. Rethinking competitive compensation to shift the focus from salary to total rewards and better support financial wellbeing

• Competitive compensation is a top-three productivity driver but is no longer enough on its own.
• Employees value benefits like performance-based incentives (53%), health insurance (36%), and employee discounts (45%).
• Younger generations prioritise paid parental leave more than older employees, highlighting the need for flexible benefits.

Takeaway: A total rewards approach - blending pay, benefits, and recognition - drives greater engagement than salary alone.

Click on our accompanying infographic below to save the stats and share with your team, or download the full report at rg.co/wei. 

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