Retain to Gain: How To Engage Your Employees Meaningfully

As an employee, how motivated do you feel about coming to work each day? What aspects of your job bring you the greatest sense of accomplishment? And what keeps you committed to your current company? As a manager or leader, are you struggling to retain top talent or looking to optimize your people management practices?

These were the central questions I explored during the second session of MSCI’s four-part Talent Retention Webinar Series on July 10, 2025. (Watch the replay in the webinar library.)  In this session, I shared insights about how to boost retention through employee engagement by highlighting six common, research-backed engagement drivers and practical, evidence-based strategies.

The Business Case for Engagement

Ample evidence demonstrates the critical importance of employee engagement. According to recent studies by Gallup and Lumapps:

• Engaged employees are 87 percent less likely to leave;
• Companies with high engagement experience 23% greater profitability; and
• Low employee engagement costs the global economy an estimated nine percent of gross domestic product (GDP).

Nevertheless, as reported by Lumapps in May 2025, employee engagement worldwide has either plateaued or declined, reverting to pre-pandemic levels. A significant majority of the global workforce remains disengaged, often merely “going through the motions” rather than fully investing in their work.

In the United States, employee engagement hit a 10-year low in 2024. According to a 2025 Gallup study:

• Only 31 percent of employees are engaged at work;
• Only 39 percent of employees feel genuinely cared for;
• Only 30 percent feel encouraged to grow and develop; and
• Just 46 percent have a clear understanding of what is expected of them.

The reality is that employee detachment from organizations is on the rise, especially among those under 35. This trend is concerning because low engagement results in decreased job satisfaction, diminished loyalty, and weakened commitment — all of which contribute to higher turnover rates and greater challenges in retaining talent.

Common Engagement Drivers

In my webinar with MSCI, I explored six key drivers of employee engagement: purpose and connection, growth and development, recognition and voice, leadership and management, and work-life balance and well-being. While not exhaustive, these drivers are consistently supported by research and validated by feedback from employees across diverse industries.

Purpose and connection refers to employees finding meaning in their work and feeling aligned with the organization’s mission, while also experiencing strong relationships and a sense of belonging. Together, purpose and connection inspire motivation, commitment, and emotional investment, leading to higher satisfaction, retention, and performance.

Growth and development refers to providing opportunities for learning, skill-building, and career advancement. When employees see a clear path for personal and professional growth, they feel valued and motivated, leading to increased engagement, performance, loyalty, and a stronger commitment to organizational success.

Recognition and voice refers to acknowledging employees’ contributions and giving them opportunities to share ideas and feedback. When employees feel seen, heard, and appreciated, it boosts their morale, strengthens their sense of value and inclusion, and drives greater commitment, motivation, and overall engagement.

Leadership and management involves the ability of leaders and managers to inspire, support, and guide their teams effectively. When leadership is transparent, empathetic, and aligned with organizational values, employees feel trusted and empowered, resulting in stronger engagement, accountability, and a positive workplace culture.

Culture and belonging refers to creating an inclusive, respectful, and supportive work environment where individuals feel accepted and valued. When employees experience psychological safety and alignment with the organization’s values, they are more likely to be engaged, collaborative, and committed to both team and company success.

Work-life balance and well-being focus on supporting employees’ physical, mental, and emotional health while allowing flexibility to manage personal and professional responsibilities. When organizations prioritize well-being, employees feel cared for and respected, leading to increased satisfaction, reduced burnout, and stronger overall engagement and performance.

Meaningful Engagement Strategies

Now we know there are six core drivers for employee engagement, let’s look at what leaders and managers can do in each area.

Clarify the Purpose of Work. To clarify the purpose of work, start by connecting individual roles to the organization’s mission. Regularly communicate how each employee’s contributions support broader company goals using stories, metrics, and testimonials. Encourage employees to co-create personal purpose statements that align with their values and roles, supported by leaders through conversations and development plans. Foster purpose-driven leadership by training managers to articulate and model meaningful work. Recognize purpose in action by spotlighting employees who embody company values. Finally, create opportunities for impact through meaningful projects, mentorship, or community initiatives that empower employees to make a difference beyond their job descriptions.

Promote Individual Growth and Development. To support growth and development, start by creating personalized development plans in collaboration with employees, setting clear goals and identifying skill-building opportunities. Regularly revisit and adjust these plans as aspirations evolve. Offer learning and upskilling or reskilling opportunities through training, workshops, certifications, or cross-training. Promote internal mobility and career pathways by encouraging exploration of roles across departments and showcasing success stories. Foster a culture of coaching and mentorship by pairing employees with mentors and empowering managers to hold regular development-focused conversations. Finally, recognize and reward growth mindsets and behaviors by celebrating learning efforts, initiative, and adaptability to reinforce a culture where development and innovation are valued.

Recognize and Reward Contributions. Implement a consistent, inclusive recognition program that celebrates both major achievements and everyday efforts through verbal praise, written shout-outs, peer nominations, and formal awards. Encourage peer-to-peer recognition using digital platforms or recognition boards to foster appreciation and strengthen team bonds. Create regular channels for employee voice through surveys, suggestion boxes, and listening sessions, ensuring feedback is easy, anonymous, and diverse. Act transparently on feedback by sharing insights and actions taken, building trust even when changes aren’t possible. Empower employees to lead initiatives by giving them ownership roles in culture, process improvements, or innovation projects to elevate their voice and impact.

Develop Engaging Leaders. Invest in emotional intelligence (EQ) development by training leaders to build self-awareness, empathy, and interpersonal skills, fostering psychologically safe environments where employees feel valued. Provide coaching and feedback training to equip managers with tools for timely, constructive, two-way conversations that build trust. Teach inclusive leadership practices to reduce bias, encourage diverse perspectives, and create belonging, boosting engagement and retention. Hold leaders accountable for engagement by making it a core metric linked to team outcomes and recognizing those who motivate teams effectively. Support ongoing leadership development through academies, peer learning, mentorship, and executive coaching to model resilience and adaptability.

Foster an Inclusive Culture. Adopt inclusive leadership practices by training leaders to recognize bias, listen actively, and incorporate diverse perspectives, boosting engagement and loyalty. Celebrate individuality and team contributions by acknowledging milestones and achievements regularly. Encourage employee voice through town halls and surveys, acting visibly on feedback to build trust. Promote cross-team collaboration with interdepartmental projects and social events to strengthen connections. Embed purpose in daily work by clearly communicating how each role supports the company’s mission, helping employees feel connected and motivated by a larger, meaningful impact.

Prioritize Employee Well-Being. If at all possible, provide flexible work arrangements like remote, hybrid, or flexible hours, enabling employees to balance personal responsibilities and reduce stress. Encourage and model time off by promoting vacation, mental health days, and breaks, with managers leading by example. Promote mental health resources such as counseling and workshops on resilience to foster support and destigmatize help-seeking. Set clear expectations by limiting after-hours communications and clarifying roles to reduce overwhelm and encourage mental disconnect. Support physical wellness through fitness programs, standing desks, and movement breaks, improving energy, focus, and overall well-being.

Employee engagement is essential for retention and, when strategically prioritized, delivers significant benefits to both individuals and the organization. Rather than reacting to high turnover after it occurs, I encourage leaders and managers to take a proactive approach by implementing meaningful engagement strategies. With the diverse approaches outlined here, I hope you feel empowered and equipped to take impactful action.

Remember, the key is to start small, stay consistent, and build momentum over time — engagement is a continuous journey that drives lasting success.

Jia Wang is a professor in the Department of Educational Administration and Human Resource Development at Texas A&M University. Her research focuses on international and national human resource development, organization crisis management, and learning within organizations.