Low employee engagement is a widespread problem that is having a profound and costly impact on workplaces. According to Gallup, the analytics and advisory company, low engagement resulted in approximately $10 trillion in lost productivity last year. That’s the equivalent of 9% of GDP. Gallup also reported that in 2025 employee engagement was at its lowest level since 2020, and has been on a steady decline globally the last two years.
There are several factors contributing to this shift, the most prominent being limited in-office experiences, fears of AI eroding human connection, and underinvestment in wellness. The companies that can solve these challenges are the ones we’ll see last long into the future. Highly engaged teams see 18% higher productivity, 23% higher profitability, and up to 43% lower turnover. Those workers act as a flywheel for the business; the more engaged they are, the more they attract like-minded talent, and the more performance will skyrocket.
Prioritizing Experience Over Attendance
With the recent increase in return-to-office (RTO) mandates and evolving hybrid work policies, the perception may be that remote work is to blame for the lack of engagement. In truth, Gallup found that remote workers are more likely to be engaged than their hybrid or in-office colleagues.
That finding underscores a reality: Bringing employees back into the office does not automatically translate into greater engagement, especially if attendance is the primary measure of success. The most successful organizations recognize that providing workers with the autonomy to come and go as they please is core to workplace satisfaction. In addition, the office itself needs to provide experiences that make the trip worth it.
Most workplaces are not designed to drive attendance or engagement. Offices have historically been built as workstations and desk farms. Those antiquated designs are now giving way to gathering spaces, recharge rooms, and configurations shaped by how people actually move. It’s not just about the look and feel of the office; data shows that manageable noise levels, flexible furniture, access to up-to-date technology, and spaces that support focused work and opportunities to rest are equally important.
Pinterest took this approach when designing its Dublin office. In addition to creating dedicated locations for both collaboration and individual work, the company built the new office around Irish culture, providing a working pub and a “Celtic forest” workspace that syncs its weather sounds with what’s happening outdoors. Kathy Aberin, Pinterest’s director of workplace design and construction, said the company saw a 55% increase in office attendance just a few months after opening, though that wasn’t the ultimate goal. Her mission was to create a space that helped employees succeed and feel comfortable at work.
Ultimately, when the workspace creates value that can’t be replicated elsewhere, attendance becomes a byproduct of engagement instead of the goal itself. When companies stay true to their values, mission, and culture while designing their spaces, the in-office experience will reinforce what’s most important. While not every office will need to go to these extremes, Pinterest’s approach to the redesign demonstrates the broader shift toward workplaces that deliver an experience instead of simply providing a place to work.
Addressing AI’s Impact on Community
While AI isn’t the only factor contributing to low engagement, it’s one of the most significant in terms of disrupting the connection that employees (both in-office and remote) crave.
In a recent survey, 43% of U.S. consumers cited reduced human-to-human interaction as their top worry tied to AI—ahead of job loss for future generations (37%) and their own job risk (31%). The newest workforce generation is feeling this shift, too; more than one-fifth of Gen Z employees say AI tools have made their personal relationships with colleagues worse, and report feeling lonelier since AI tools were introduced. As workers increasingly rely on AI for brainstorming and answering questions—rather than going to their colleagues—this disconnect is only expected to grow.
The benefit of this technology is to free workers to spend more time collaborating and working on meaningful projects, but not every workplace is set up to make that a reality. Creating spaces that emphasize connection is just one piece; leaders must be intentional in how they introduce AI to employees, building guardrails that instruct how and when to use it and eliciting regular feedback from the entire workforce. Employees should be part of the decision-making process when it comes to AI, and giving them a seat at the table is core to that effort. AI systems shouldn’t be built on top of the workforce; they should be built with it.
Caring for Employee Well-being
With the rise of GLP-1s came an increased emphasis on products, services, and experiences that directly support healthier lifestyles. Fully 97% of U.S. consumers have engaged in health and wellness habits like healthier eating, physical activity, and better sleep in the last two years. These behaviors are most notably present in younger generations, with Gen Zers and millennials reporting increased emphasis on wellness compared with older generations.
Those same generations are the ones that will make up the vast majority of our global workforce in the next few years. With that in mind, it’s not surprising to see workers expect more of their employers when it comes to wellness amenities. Being able to adhere to healthy habits while at home and at work is becoming the baseline, and the workplaces that stand out are the ones making it easier for workers to do so.
That starts with improving access to healthier food and beverage choices. Replacing the high-sugar, heavily processed snacks and sodas that often take up pantry and refrigerator space with nutritional and functional options is core to this effort. A U.K. study found that workers are more inclined to come to the office if their employers provide healthier snacks. Moreover, consumption of still and sparkling water in offices increased 97% year over year in 2025, according to Crafty, a provider of office pantry programs, reflecting a need to prioritize healthy hydration in workplace settings.
In addition to providing better food and beverage programs, workplaces focusing on wellness also emphasize movement, natural light, and greenery. The combination of these efforts with ergonomically designed office layouts creates the full package, and the investment is proven to pay off. When workplaces prioritize well-being, employees are more likely to perform better. Some 89% of workers report they are more productive in such situations.
Solving the employee engagement problem isn’t a matter of one size fits all. The combination of these factors will signal to employees that their experience at work is a priority, not a box to check. When employees feel inspired by the work they’re doing, they raise the bar for the entire company, now and in the future. The leaders that bring these practices to life will far outlast those that don’t, and that’s a $10 trillion bet I’m willing to make.