The signs are flashing red: employee engagement is dropping, and the cost to businesses is mounting.
Gallup’s latest report shows global engagement levels have slipped to 21%, down from 23% the year before. Young and female managers are among the hardest hit – showing just how systemic and urgent the issue has become.
But this isn’t new to us. At Caffeine, we’ve seen it coming and our Employee Pride research confirms it: disengagement doesn’t happen in a vacuum. It’s the result of unclear purpose, inconsistent leadership, and disconnected employee experiences.
The stats back it up. Caffeine’s own Employee Pride Index shows that only 29% of UK employees would recommend their employer as a place to work. Leadership is a major issue – fewer than half of employees believe their leaders focus on making their company a great place to work.
That’s why employee engagement can’t be solved with perks or posters. It needs purpose, leadership and consistent experience.
So – what’s the fix?
Reignite purpose
Employees want to know their work matters. A clear, lived purpose creates connection and meaning.
Empower managers
Your managers are the linchpin of engagement. Support and develop them, and you support the whole organisation.
Design intentional experiences
Your EVP is not just a slogan – it should be felt in everyday moments from first interviews to team meetings to recognition.
Listen and act
Feedback without follow-through breaks trust. Show that the employee voice matters by doing what you said you would do.
Three Caffeine takeaways to elevate your employee experience:
1. Start with truth, not trends.
Don’t chase engagement fads – interrogate what your people really feel. Our Employee Pride Index helps leaders get under the skin of what matters.
2. Build your EVP from the inside out.
A compelling proposition isn’t a tagline. It’s the sum of hundreds of moments – designed with purpose and delivered consistently.
3. Coach leaders to lead culture.
The experience your people have is your culture. We help leaders shape it through clarity, behaviours and credibility
Employee engagement isn’t a trend—it’s a business imperative.
Getting it right takes more than data. It takes action. Strategic, deliberate, people-powered action.
Want to know what engagement really looks like in your business? Let’s talk.
