INTRODUCTION

Across the globe, a striking disconnect has emerged between how leaders perceive employee engagement and how employees actually feel. When asked about the state of their workforce, 53% of leaders reported that their employees are fully engaged. Only 29% acknowledged any
disengagement within their teams.

However, the employee experience tells a very different story.
Only 37% of employees are fully engaged in their work. Even more concerning, 41% are disengaged. This stark contrast reveals a significant perception gap: leaders are
overestimating engagement and underestimating disengagement at alarming rates. This disconnect leads to the prioritization of ineffective talent strategies based on inaccurate assumptions about the state of current talent.

Furthermore, an additional 22% of employees are only somewhat engaged. In our 2024 The State of Careers reports, we found that those who are somewhat engaged are at the highest risk of leaving the organization, even compared to disengaged employees.

THE ENGAGEMENT ILLUSION: LEADERS ARE OUT OF SYNC WITH THEIR WORKFORCE

THE TALENT PARADOX: WHY THE FIRST HOOK ISN’T ENOUGH TO KEEP THEM

To truly engage and retain top talent, leaders must recalibrate their approach. The first step is recognizing a critical distinction: attracting talent and retaining it are not the same — yet many organizations treat them as if they are.

This may seem paradoxical. While it’s common to assume that what draws employees in will also keep them engaged, the data tells a different story.
When asked what would make them consider a new job opportunity, workers were most likely to cite pay and benefits (36%), followed by job logistics (19%). Therefore, the factors attracting employees to an organization are the exact inverse of what keeps them engaged over time.

Engagement and retention are driven by deeper, more intrinsic factors: fit, career and learning opportunities. 
In short, employees stay when they see a future for themselves — when their work feels purposeful and success feels attainable. These drivers often outweigh traditional incentives like promotions. Purpose and lateral career development (i.e., the career lattice) are increasingly more important than simply climbing the corporate ladder. 

Right Management helps develop, retain and optimise the workforce for the future

A human-centred approach to career and talent management

Employees are more empowered, reframing their work lives beyond jobs to careers. These personal growth journeys combine sustainable employment, purpose, and impact to achieve individual potential.

With a global footprint spanning over 75 countries and deep local expertise, we empower individuals to thrive and organisations to grow.