The Workplace Engagement Index 2025

In our second annual Workplace Engagement Index, we uncover how employee engagement and workplace productivity remain top priorities for Australian HR leaders in 2025. This year's report explores the evolving state of engagement across generations and industries, highlighting the key factors driving productivity, retention, and a thriving workforce.

Employee retention is a crucial challenge

1
in
2

employees

have considered leaving their job in the last six months

Top 3 reasons why Aussies are leaving their jobs

37%
35%
31%
Being overworked
Poor pay
Lack of recognition

Less
than
half

of employees feel productive (down more than 20% vs last year)

Boosting engagement and productivity is a business imperative

Top 3 drivers of employee productivity

Receiving reward and recognition
43%
A strong and supportive manager/leader
41%
Competitive compensation
38%

What employees are saying

“When employees are mentally well, they are more likely to be motivated, focused, and creative in their work. It also helps create a positive work environment where people feel supported and valued. By prioritising mental wellbeing, employers can reduce stress, burnout, and absenteeism, leading to better job satisfaction and retention.”

- Gen Z

“I think most times it is taken for granted that the worker should be happy having a job, but in my experience as a manager productivity is higher and staff are happier when they are told that their hard work is appreciated.”

- Baby Boomer

“As a manager myself continually recognising and rewarding my team, I would like to sometimes see that in the reverse.”

- Gen X

For more insights on how Aussie employees are feeling in 2025, download
The Workplace Engagement Index.

The future of HR in

2025

The Workplace Engagement Index uncovers the critical factors shaping retention and productivity in Australian workplaces. Discover the key insights that will drive HR and business success in 2025.

Join us in building a future where employees stay, perform, and thrive.

Methodology

Objective

The Workplace Engagement Index seeks to offer insights into the overall workplace environment, expectations, sentiments and wellbeing of employees by engaging employees and HR managers across various industries in Australia.

Survey distribution

We conducted an online survey involving over 1,008 employees and 500 HR managers in organisations with over 100 employees in Australia. These cohorts spanned different generations, from Gen Z to Baby Boomers, and workforce types including office-based, hybrid, remote, deskless and frontline.

Survey timeline

The survey commenced on Monday the 20th of January 2025 and was completed on Sunday the 2nd of February 2025.

Index calculation

The Workplace Engagement Index is designed to gauge Australian employees' engagement regarding their employers' initiatives, programs and efforts. Focused on four pillars — connection and belonging, personal and professional wellbeing, leadership and management, and understanding employee needs — the index assigns weights to each pillar based on the perceived importance to employees. Using a predetermined list of 22 attributes across these pillars, respondents rate their companies, and the ratings per attribute are averaged within each pillar. The assigned weights are then added to calculate the total index.