Employee engagement is one of the strongest indicators of an organization’s success, affecting everything from productivity to morale and, of course, staff retention. We all want to get it right. Yet despite a growing awareness of the importance of engagement and widespread investment in engagement strategies, the latest figures paint a concerning picture.
People Insight’s 2025 Employee Engagement Trends report highlights that engagement levels in the UK have declined again, falling from 80 percent in 2023 to 78 percent in 2024. Among the factors influencing this decline, leadership perceptions have suffered the sharpest drop, overtaking reward as the lowest-scoring element of engagement.
Leadership has always been a huge driver of employee engagement. Senior leaders set the tone for the organization, shape its culture, and determine how connected employees feel to their work. However, the latest data indicates that employees are increasingly dissatisfied with how their leaders communicate, listen, and provide direction. With engagement slipping, it is important that we take a step back and consider why leadership is failing to inspire employees—and what organizations can do to address these issues.
Leadership Perceptions Are Deteriorating
According to the 2025 Employee Engagement Trends report, leadership scores have continued their downward trajectory. The data reveals a stark decline in employees’ perceptions of senior leaders:
- Only 56 percent of employees believe senior leaders make the effort to listen to staff—down from 65 percent in 2023.
- Just 58 percent feel senior leaders provide a clear vision of the organization’s direction, compared to 70 percent in 2020.
- Open communication across all levels improved slightly from 56 percent in 2023 to 60 percent in 2024 but remains significantly lower than the 65 percent recorded in 2021.
These figures suggest leaders are struggling to meet rising employee expectations. Transparency and authenticity matter more than ever and employees want leaders who listen, communicate clearly, and create a sense of shared purpose. Unfortunately, the data suggests that many employees feel disconnected from those at the top.
The Consequences of Ineffective Leadership
Poor leadership has far-reaching consequences that extend beyond engagement scores. When employees lack trust in their leaders, organizations face a range of challenges, including:
- Increased turnover: Disengaged employees are more likely to leave, leading to costly recruitment and onboarding processes.
- Lower productivity: Without clear direction and motivation from leadership, employees are less likely to perform at their best.
- Reduced morale: A lack of communication and recognition from senior leaders can leave employees feeling undervalued.
- Weaker collaboration: When leadership does not prioritize open communication, silos form, preventing effective teamwork.
- Difficulty attracting talent: Prospective employees pay attention to leadership quality and company culture when considering new roles.
Given these challenges, it’s clear leadership shortcomings affect not only engagement but overall business performance.
What Leaders Can Do to Improve Engagement
With leadership emerging as a key reason behind declining engagement, organizations need to act now and take deliberate steps to improve how senior leaders interact with employees. Here are five key strategies that can help rebuild trust, motivation, and commitment.
1. Actively listen to employees.
The steep drop in employees who feel senior leaders make the effort to listen (down to 56 percent) indicates a widening gap between leadership and the workforce. Listening is more than just hearing concerns. Leaders also need to act on feedback. Leaders can demonstrate that they value employees’ input by:
- Holding regular forums or Q&A sessions where employees can voice their opinions.
- Following up on employee concerns and communicating what actions are being taken.
- Encouraging managers to act as a bridge between leadership and frontline employees.
2. Communicate a clear vision.
One of the most striking statistics from the 2025 report is that only 58 percent of employees feel senior leaders provide a clear vision for the organization. Without a clear sense of direction, employees may struggle to see how their work contributes to broader company goals. Leaders can address this by:
- Clearly articulating company objectives and regularly reinforcing them.
- Explaining how employees’ roles contribute to the organization’s success.
- Using storytelling to make the company’s vision more relatable and inspiring.
3. Be more visible and approachable.
Hybrid and remote working are fantastic flexible options to have for any company, but they need to be managed well. It’s clear that, in some situations at least, such arrangements have have made it more challenging for employees to feel connected to senior leaders. However, this is not an excuse for disengagement. Leaders must take proactive steps to remain visible and accessible, such as:
- Engaging directly with employees through town halls and video updates.
- Encouraging informal interactions to build rapport and trust.
- Making use of digital platforms to facilitate open communication.
4. Recognize and appreciate employees.
Recognition is an area that is, unfortunately, often overlooked. Employees who feel appreciated are more likely to be motivated and committed to their work. Leaders should:
- Regularly acknowledge individual and team achievements.
- Celebrate milestones and successes openly.
- Promote a culture where managers and peers are encouraged to recognize each other’s contributions.
5. Invest in leadership development.
The decline in leadership scores suggests many senior leaders may not have the necessary skills to engage and inspire employees. Organizations must invest in leadership development programs that focus on:
- Emotional intelligence and communication skills
- Strategies for leading in hybrid and remote environments
- Techniques for fostering a more inclusive and engaging culture
The Role of Employee Listening in Addressing Leadership Challenges
The downward trend in engagement should serve as a wake-up call for organizations to rethink how they approach leadership. One of the most effective ways to do this is through regular employee listening. Surveys, feedback sessions, and open dialogue help leaders understand the concerns of their workforce and make informed decisions about how to improve engagement.
However, listening alone is not enough. Employees need to see that their feedback leads to meaningful action. When organizations take visible steps to address leadership shortcomings and give them the training they need to succeed, trust and engagement can begin to recover.
