HR.com’s State of Employee Productivity and Engagement 2025

Make engagement a business priority to drive productivity

In a time of evolving expectations and workplace disruption, employee engagement and productivity have become top priorities for HR leaders striving to build resilient, high-performing organizations. HR.com’s latest report, State of Employee Productivity and Engagement 2025, uncovers the realities behind rising engagement efforts and reveals what truly drives performance in the modern workforce.

A Workforce at a Crossroads

While engagement metrics have improved—from 23% in 2022 to 30% in 2025—true engagement remains elusive. Over 40% of HR professionals say most of their workforce remains disengaged, pointing to a disconnect between strategic intentions and on-the-ground impact.

 

The Divide Between Leaders and Laggards

Organizations are investing in engagement, but results vary widely. Engagement and productivity leaders are leveraging AI, modern HR tech, and data-driven practices, while others remain stuck with outdated tools, inconsistent feedback, and minimal leadership support.

Key Questions Explored in the Full Report

This in-depth report offers data-driven insights into:
 

1. What’s actually working to boost engagement and productivity—and what’s not.
2. How leading organizations systematically measure, improve, and sustain performance.
3. Why technology, culture, and leadership alignment are non-negotiables.
4. The role of AI and automation in driving measurable gains in workforce efficiency.
5. How HR professionals can close the "engagement gap" with smarter tools and inclusive strategies.

Trends and Perceptions of Employee Engagement  

Finding: Only 30% say the average employee in their organization is highly engaged

Only 30% of HR professionals rate the average employee engagement levels at 8 or above on a scale from one to 10. In contrast, 43% of responses fell at 6 or below, signaling a sizable portion of the workforce perceived as disengaged or only minimally engaged.

Roughly a quarter (27%) selected 7 on the ten-point scale, suggesting that many employees are seen as moderately engaged but not fully thriving. Just 2% of respondents rated engagement at a perfect 10, highlighting a gap between average and optimal engagement. These findings point to a need for focused strategies that move employees from moderate levels to high levels of engagement.    

Measuring Employee Engagement 

Finding: Eight out of 10 organizations measure employee engagement through surveys  

Surveys (79%) dominate as the primary method for measuring engagement, with retention rates (61%) and exit and/or stay interviews (59%) offering supplementary insights. These have remained the top choices for measuring engagement over the last four years.

However, reliance on these metrics alone may overlook deeper, dayto-day factors influencing engagement. One-on-ones (45%) and performance appraisals (42%) provide a more personalized approach but are underutilized in comparison.

Metrics like customer satisfaction (29%) and absenteeism (21%) have limited impact on engagement measurement, yet they can offer early warning signs of disengagement. HR professionals should broaden their approach, integrating both qualitative and quantitative data for a more accurate understanding of engagement.    

Finding: More than half of respondents say their organizations measure engagement more than once a year  

Most organizations measure engagement annually (43%), while 23% measure it twice a year. A smaller percentage use more frequent methods, such as quarterly (11%) or continuous real-time data collection (9%), which offers a more dynamic view of employee sentiment.

The proportion of respondents saying they conduct continuous measurement of engagement levels has increased marginally from 5% in 2022 to 9% in 2024 and 2025.

HR professionals should consider increasing the frequency of engagement assessments, especially in fast-changing environments. More frequent or real-time data collection allows for timely interventions, helping to address issues before they impact retention or productivity.

Finding: Engagement leaders are five times more likely than laggards to measure engagement more frequently  

Only 5% of engagement laggards track engagement more often than quarterly, compared to 26% of leaders. Frequent measurement enables timely action and better responsiveness to employee needs, setting leader organizations apart.  

Managing Productivity    

Finding: Only about a third of HR professionals rate the average employee as highly productive

Just 34% of HR professionals rate the average employee in their organization as highly productive (8 or above), while 31% place them in the low productivity range (6 or below). The largest share (36%) see productivity at a mid-level score of 7.

This points to a clear gap. While most employees are not underperforming, few are reaching high productivity levels. To shift more employees into the high-performing category, organizations need to focus on strengthening day-to-day productivity. Clear goals, regular feedback, and a supportive work environment can help move average performance upward and unlock greater organizational impact.  

Finding: Half of organizations measure productivity through performance reviews

The most commonly used method for measuring employee productivity is performance reviews, with 50% of organizations relying on them. Goal completion follows closely, at 41%, indicating a focus on outcomes.

While traditional methods like performance reviews remain dominant, HR professionals should consider supplementing them with more dynamic but less-used metrics such as efficiency or output measurements. These can offer a broader understanding of productivity by evaluating not just end results but also the efficiency and effectiveness of work processes.  

Finding: Three-fifths of organizations use HR and workforce management software to enhance productivity

HR and workforce management software is the most commonly adopted tool, used by 61% of organizations to support employee productivity. Other widely used tools include collaboration and communication platforms (53%), document management systems (53%), and learning and development tools (53%).

This highlights a strong reliance on tools that streamline communication, documentation, and workforce management. To further enhance productivity, HR professionals should consider integrating AI-powered tools and analytics software, which could provide actionable insights and automate routine tasks, allowing employees to focus more on value-added activities.  

Finding: Over three-quarters of productivity leaders use HR and workforce management software

Productivity leaders are more likely to adopt enabling technologies across the board. While 78% of productivity leaders use HR and workforce management software, only 51% of productivity laggards do. Similar gaps exist for learning and development tools (62% vs. 45%) and AI-powered work tools (42% vs. 23%).

This pattern suggests that higher productivity is closely linked to the strategic use of digital tools that support people management, continuous learning, and task efficiency. Technology adoption appears to be a key differentiator between organizations with high and low productivity outcomes.  

Finding: The most cited method for boosting productivity is clear goals and expectations

Clear goals and expectations are the top factor in boosting productivity, cited by 42% of organizations. Supportive leadership (40%) and flexible work arrangements (32%) also play critical roles.

This highlights the need for HR to focus on goal clarity, strong leadership, and flexible work options to enhance performance. While recognition and rewards matter, fundamental factors like communication and support have a greater impact on sustained productivity.  

Finding: Productivity leaders are over three times more likely to prioritize training and efficient workflows

Among productivity leaders, 31% cite excellent training and 26% highlight efficient workflows as key to improving productivity—compared to just 9% and 6% among laggards, respectively.

This contrast suggests that high-performing organizations invest more intentionally in building employee capability and removing process barriers. Prioritizing learning and workflow design appears to be central to driving consistent productivity gains.  

Key Takeaways  

1. Employee engagement is crucial for productivity
2. Technology, especially AI, is a game-changer for HR productivity
3. Frequent and diverse engagement measurement methods are essential
4. Organizational culture and leadership are key drivers of engagement
5. Flexibility and well-being initiatives boost productivity and engagement
6. Focus on both tangible and intangible factors for employee motivation
7. Collaboration and communication tools are essential for remote and hybrid teams
8. Empower employees to manage their own engagement
9. Invest in continuous training and development
10. Data-driven decision-making enhances HR strategy and engagement outcomes

 

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