Employers have experienced a tumultuous couple of years, including regulatory and political shifts, economic uncertainty, remote work and the rapid rise of new technologies including artificial intelligence. Next year is unlikely to be any different, according to DHR Global's 2025 Workforce Trends Report, which surveyed 1,500 white-collar, desk-based knowledge workers across North America, Asia and Europe about how these shifts affect their engagement and productivity.
A large percentage of these employees (88%) indicated they are very or extremely engaged at work, which compares with only 1% who said they are not engaged at all. However, the motivating factors for employees feeling happy and motivated at work tended to be tied to fear rather than emotional investment, the study found. About two-thirds of survey respondents said the tighter job market increases their engagement and 61% said job insecurity motivates them to stay engaged at work.
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Ninety-three percent of employees said they would feel more engaged in their work if they were given employer-sponsored professional development opportunities. Remote and hybrid work flexibility also drove high levels of engagement as did access to generative AI tools. However, remote and hybrid workers indicated they feel less engaged than full-time in-office workers.
“Leaders shouldn’t jump to return-to-office initiatives as a cure-all for engagement gaps, but instead focus on how to engage employees who aren’t physically present in the office,” said the report.
Despite high rates of engagement, employees also reported a high level of burnout, according to the report. One-third of employees say burnout reduces their engagement at work. Younger generations reported higher levels of burnout, with 87% of Gen Z saying they feel burnt out compared with 57% of baby boomers. Nearly 1 in 5 millennials felt extremely burnt out, likely due to being at an age where they are juggling young children and entering management positions for the first time.
The top drivers of workplace burnout were working too many hours, shouldering an overwhelming workload, difficulties balancing work and life, fear of layoffs and conflicts with coworkers.
C-suite turnover impacted half of respondents during the past year. Executive turnover often leads employees to question their employer’s mission and creates operational challenges and confusion.
“However, new leadership can also be an opportunity to inspire employees with a refreshed vision or new direction for the company,” said the report. “Almost two-thirds of employees (63%) said executive turnover increases their engagement.”
In addition, external factors, such as political turmoil, can leave employees feeling less engaged and at greater risk for burnout. Nearly two-thirds of workers agreed that changes in their country’s political environment left them more distracted at work, according to the study.
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