A lot of companies have tried to improve engagement, but it’s not as simple as throwing money at the problem. In fact, many strategies fail because they’re based on misunderstandings about what employee engagement really means.
In a recent article, I outlined why most organizations are failing at employee engagement. The short version is that employees aren’t satisfied with their jobs anymore, and neither are managers or executives. Instead, they’re emotionally engaged — they care about their company and their work, and they want to contribute meaningfully. And yet, despite this emotional connection, employees are leaving in record numbers. What gives?
I’ve written before that there are some effective strategies for improving engagement, but many companies don’t know which ones to use. In this article, I’ll outline six proven strategies that actually improve retention and performance.
Let’s start by looking at why engagement matters. Gallup has been tracking engagement levels since 2001, and they just released their 2026 State of the Global Workplace report. According to them, only 31% of U.S. employees are engaged right now, which is an 11-year low:
And globally, things are even worse. Only 21% of workers worldwide are engaged, according to Gallup. That means the cost of disengagement is huge. Gallup estimates that the global cost of disengagement will be $438 billion in 2025 alone. And in 2024, Gallup estimated that low engagement cost the global economy $10 trillion in lost productivity.
That’s a big number, but it’s not surprising. It turns out that highly engaged workforces outperform their competitors by 147% in earnings-per-share (EPS), and are 21% more profitable than other companies. Highly engaged teams deliver 23% higher profitability.
Engagement predicts company performance even during a recession. Companies that were more engaged in 2022 had 45% higher EPS growth in 2023 compared to non-engaged companies.
So if you’re a manager, executive, or CEO, you need to understand what employee engagement is and how to increase it. Because while you can’t control everything, you can create conditions that allow people to thrive. But first, you need to understand what employee engagement really means.
Employee engagement is defined by Gallup as “an emotional connection to the organization and one’s work.” This goes beyond satisfaction; it’s about being emotionally invested in your job and your company. And while it’s important for employees to feel happy and fulfilled, engagement is something much deeper. It’s about feeling that your work is meaningful, that your company cares about you, and that you have the tools and support you need to do your best work.
This means that any strategy you choose to increase engagement must begin with creating the right conditions at the top. If your leaders aren’t committed to engagement, it won’t happen. You can’t expect your employees to care about their work if your executives don’t show that they care either. So if you want to boost engagement, you need to start at the top.
The six strategies
You also need to communicate consistently and transparently throughout your organization. Building trust through transparent, consistent communication was identified as one of the most effective engagement strategies in the 2026 report. Failure points include using outdated channels to communicate, unclear messaging, and lack of feedback loops. All of these damage collaboration, trust, and transparency across teams. Internal communication teams can help improve engagement by better using existing communication channels.
Recognition is another key part of boosting engagement. Research found that well-recognized employees were 45% less likely to have turned over after two years. They found that recognizing employees specifically and regularly, rather than infrequent formal programs, was the best way to boost engagement. The strongest engagement outcomes came from meaningful recognition as an ongoing process, not a survey or a perk.
Career growth clarity and purpose are also essential for increasing engagement. Gallup found that 94% of employees would stay longer if their company invested in their career development. Giving employees clarity on how their work connects to organizational goals, and where they can grow, helps keep them motivated and involved. Investing in education and development is one of the most significant ways to improve engagement. AI and digital transformation make skill development increasingly important, so effective managers need to define both explicit and implicit expectations, paint a picture of what outstanding performance looks like, and connect the role to the broader purpose of the organization.
Manager accountability and psychological safety are also critical for increasing engagement. Gallup found that up to 70% of variance in employee engagement is attributed to the manager. Psychological safety is a prerequisite condition for engagement, and strategies fail when this layer is ignored. Expectation-setting failure — telling employees what to do, but not helping them figure out how to do it — is one reason why engagement strategies fail.
Finally, we need to focus on employee well-being. Well-being was identified as one of the core areas alongside communication, recognition, growth, and measurement. Employees who feel supported and valued are more likely to engage deeply with their work and their company. Treating employees holistically is necessary for long-term success. Accommodating flexible work environments and providing opportunities for personal growth and development are also essential for keeping employees happy and productive.
Lastly, we need to measure engagement consistently and provide visible feedback loops. Closing the loop visibly so that employees see input leads to real action is one of the most effective ways to close the gap between intention and execution. Consistent measurement + segmenting data by team, location, and role = best positioned to identify disengagement early. Engagement is measured through pulse surveys, employee feedback, retention rates, absenteeism, eNPS, participation rates, and workplace analytics. Measuring engagement shows whether employees are deeply invested in their company or simply going through the motions.